IIA IIA-CIA-PART2 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 651:

  As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?

  I. Applicants are not required to have their signed applications legally authenticated.

  II. Applicants' educational information is not validated with the educational institution before employment is offered.

  III.

  Information related to applicants' long-term work history is not validated before employment is offered.

  A. III only
  B. I and II only
  C. II and III only
  D. I, II, and III
  C. II and III only

• Question 652:

  Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?

  A. Relocate bins to the inventory warehouse.
  B. Require management to compare the cost of consumable items used to the budget.
  C. Lock the bins during normal working hours.
  D. None of the above actions are needed for items of minor cost and size.
  B. Require management to compare the cost of consumable items used to the budget.

• Question 653:

  A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

  A. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
  B. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
  C. Both total sales and cost of ingredients used are greater than expected.
  D. Both total sales and cost of ingredients used are less than expected.
  B. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.

• Question 654:

  Which characteristic of risk assessment makes it a useful tool for audit planning?

  A. It provides a list of auditable activities in the organization.
  B. It ranks the severity of potentially adverse effects on the organization.
  C. It provides a process for identifying and analyzing potentially adverse effects.
  D. It evaluates the probability that an event or action may adversely affect the organization.
  C. It provides a process for identifying and analyzing potentially adverse effects.

• Question 655:

  During a consulting engagement, an internal auditor wants to determine whether all principal stakeholders are involved in a project. Which tool should the auditor use?

  A. RACI (responsible, accountable, consult, and inform) chart.
  B. Flowchart.
  C. SWOT (strengths, weaknesses, opportunities, and threats) analysis.
  D. Work ow analysis.
  A. RACI (responsible, accountable, consult, and inform) chart.

• Question 656:

  According to IIA guidance, when would an interim report typically be produced?

  A. During a standard audit engagement when management wants to address an issue before the final report is drafted.
  B. Following each workshop conducted during a consulting engagement.
  C. During lengthy audit engagements involving several organizational units.
  D. Following management's update for actions taken on outstanding recommendations.
  C. During lengthy audit engagements involving several organizational units.

• Question 657:

  An internal auditor is assigned to validate calculations on the organization's billing application. As part of the test, the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?

  A. Generalized audit software.
  B. Utility software.
  C. Integrated test facilities.
  D. Audit expert systems.
  D. Audit expert systems.

• Question 658:

  Which of the following Justifications in the audit workpapers would assure the chief audit executive that the size of the sample was properly selected?

  A. The sample size was selected based on a risk assessment and engagement objectives of the area being audited.
  B. The sample size was based on the sample size that was used in previous years' audits, for year over year comparison.
  C. The sample size was based on the sample size used last year by external auditors who performed an independent evaluation of the area being audited.
  D. The sample size was selected per HA Standards, which specify the appropriate sample size for the particular area being audited.
  A. The sample size was selected based on a risk assessment and engagement objectives of the area being audited.

• Question 659:

  A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?

  A. Assert whether the described and reported control processes and systems exist.
  B. Assess whether senior management adequately supports and promotes the internal control culture described in the report.
  C. Evaluate the completeness of the report and management's responses to identified defficiencies.
  D. Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.
  C. Evaluate the completeness of the report and management's responses to identified defficiencies.

• Question 660:

  Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

  A. Verify that amounts are correct.
  B. Verify that payments are on time.
  C. Verify that recipients are valid employees.
  D. Verify that Benefits deductions are accurate.
  C. Verify that recipients are valid employees.