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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 681:

  After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?

  A. Cost.
  B. Independence.
  C. Familiarity.
  D. Flexibility.
  C. Familiarity.

• Question 682:

  When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?

  A. Informational questions.
  B. Admission-seeking questions.
  C. Assessment questions.
  D. Closing questions.
  A. Informational questions.

• Question 683:

  Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?

  A. To gain access to a wider variety of skills, competencies and best practices.
  B. To complement existing expertise with a required skill and competency for a particular audit engagement.
  C. To focus on and strengthen core audit competencies.
  D. To provide the organization with appropriate contingency planning for the internal audit function.
  D. To provide the organization with appropriate contingency planning for the internal audit function.

• Question 684:

  If participants in a control self-assessment workshop begin breaking their agreed-upon ground rules, the facilitator should:

  A. Ignore the behavior and continue the workshop.
  B. Allow them to continue briefly and then remind them of the ground rules.
  C. Have the participants modify the ground rules.
  D. Strictly enforce the ground rules.
  B. Allow them to continue briefly and then remind them of the ground rules.

• Question 685:

  Which of the following is most appropriate for internal auditors to do during the internal audit recommendations monitoring process?

  A. Report the monitoring status to senior management when requested.
  B. Assist management with implementing corrective actions.
  C. Determine the frequency and approach to monitoring.
  D. Include all types of observations in the monitoring process.
  C. Determine the frequency and approach to monitoring.

• Question 686:

  Considering the five-attribute approach to documenting deficiencies in an area under review, which of the following answers the question: "What should be in place?"

  A. Action plan
  B. Recommendation
  C. Condition
  D. Criteria
  D. Criteria

• Question 687:

  Which of the following would be the least important reason for a company to merge with another company?

  A. To diversify risk.
  B. As a response to new government policy.
  C. To reduce labor costs.
  D. To increase stock prices.
  D. To increase stock prices.

• Question 688:

  Which of the following is true regarding the monitoring of internal audit activities?

  A. The form and content of monitoring policies could vary by industry.
  B. The board of directors is responsible for the establishment of monitoring policies.
  C. Both large and small audit departments must have written policies on monitoring.
  D. The chief audit executive must develop all monitoring policies related to the activity.
  A. The form and content of monitoring policies could vary by industry.

• Question 689:

  A manufacturing organization is considering a merger with a similar firm, and requests that the chief audit executive (CAE) perform a due diligence audit. During the preliminary survey, the CAE notes that inventory management is a high risk

  area. In consultation with the external auditors and legal advisors, the CAE learns that they share those concerns.

  Which of the following is the CAE's best course of action?

  A. Perform an independent audit of the merging firm's inventory management practices to verify the concerns and to provide relevant and reliable results to management for their consideration and action.
  B. Advise management that internal audit, external audit, and legal advisors all have concerns about inventory management and, given the high materiality of inventory, management should not proceed with the merger.
  C. Coordinate a review of inventory management with external auditors and legal advisors and ensure each group focuses on their area of expertise to ascertain the extent of the problems, if any.
  D. Coordinate with the merging firm's internal audit department to better understand the inventory management function and whether the concerns are well founded before proceeding further.
  C. Coordinate a review of inventory management with external auditors and legal advisors and ensure each group focuses on their area of expertise to ascertain the extent of the problems, if any.

• Question 690:

  An internal auditor utilizes a questionnaire to evaluate controls related to the financial close processes within a hospital system. The questionnaire was developed internally by management and requires a "yes" or "no" response from local

  hospital management regarding their adherence to the mandated month-end close processes.

  Which of the following would be considered the greatest benefit to utilizing the checklist responses to determine the audit scope?

  A. The questionnaire covers standard operating procedures that were developed centrally.
  B. The questionnaire is clear and reliable, as each question requires a simple "yes" or "no" response.
  C. The questionnaire results save the auditor's time, as "yes" responses can be excluded from the audit scope.
  D. The questionnaire produces quanti able results covering all risks associated with close processes.
  C. The questionnaire results save the auditor's time, as "yes" responses can be excluded from the audit scope.