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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 691:

  According to the Standards, which of the following is true regarding the auditor's inclusion of management's satisfactory performance in the final audit report?

  A. Acknowledgement of satisfactory performance is encouraged but not required.
  B. There are no standards to address the inclusion of satisfactory performance.
  C. Satisfactory performance should only be acknowledged with the advice of corporate counsel.
  D. Auditors must include satisfactory performance with the approval of the board.
  A. Acknowledgement of satisfactory performance is encouraged but not required.

• Question 692:

  Which of the following would be the best audit procedure to use to determine if a division's unusually high sales and gross margin for November and December were the result of fraudulently recorded sales?

  A. Trace a sample of shipping documents to related sales invoices to verify proper billing.
  B. Confirm accounts receivable balances with customers.
  C. Compare sales and gross margin totals with those of the previous ten months and the first month of the following year.
  D. Use regression analysis techniques to estimate the sales and cost of goods sold for November and December.
  B. Confirm accounts receivable balances with customers.

• Question 693:

  Which of the following actions best describes an internal auditor's use of test data to determine whether an organization's new accounts payable system avoids processing questionable invoices for payment?

  A. Creating an automated tool that monitors the computer program on a daily basis for potential issues that need corrective actions.
  B. Using an automated system that assists internal auditors with automating the risk analysis of the computer program for invoicing.
  C. Embedding tools in the computer program to analyze the review processes of invoices for potential issues that may hamper payments.
  D. Adding invoices to the computer program to assess the reliability and effectiveness of the review process and whether controls work.
  B. Using an automated system that assists internal auditors with automating the risk analysis of the computer program for invoicing.

• Question 694:

  As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily

  quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas.

  Which of the following is true about the auditor's conclusion?

  A. The number of items selected for testing is inadequate to justify the conclusion.
  B. The shipping department is effective in meeting its responsibilities.
  C. This conclusion would negate any need to perform tests of efficiency.
  D. None of the above.
  D. None of the above.

• Question 695:

  Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?

  A. Improper segregation of duties.
  B. Incentives and bonus programs.
  C. An employee's reported concerns.
  D. Lack of an ethics policy.
  C. An employee's reported concerns.

• Question 696:

  An organization recently acquired a subsidiary in a new industry, and management asked the chief audit executive (CAE) to perform a comprehensive audit of the subsidiary prior to recommencing operations. The CAE is unsure her team has the necessary skills and knowledge to accept the engagement. According to IIA guidance, which of the following responses by the CAE would be most appropriate?

  A. The CAE should accept the engagement and ensure that an explanation of the expertise limitations is included in the final audit report.
  B. The CAE should ask management to hire an external expert who is familiar with the industry to perform an independent audit for management.
  C. The CAE should accept the engagement and hire an external expert to assist the audit team with the audit of the subsidiary.
  D. The CAE should recommend postponing the engagement until the internal audit team is able to develop sufficient knowledge of the new industry.
  C. The CAE should accept the engagement and hire an external expert to assist the audit team with the audit of the subsidiary.

• Question 697:

  The objective of an internal audit engagement is to assess the effectiveness of warehouse operations. Which of the following should be included in the scope of the engagement?

  A. Authorizations of purchase invoices.
  B. Calculations of current and quick ratios.
  C. Physical counts of inventory.
  D. Fair values of financial assets.
  C. Physical counts of inventory.

• Question 698:

  While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the

  program and notify customers with multiple accounts that the accounts will be consolidated.

  Which of the following actions should the auditor take?

  1.Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.

  2.Evaluate the adequacy and effectiveness of the corrective action proposed by management.

  3.Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.

  4.Submit management's plan of action to the external auditors for additional review.

  A. 1 and 2
  B. 1 and 4
  C. 2 and 3
  D. 3 and 4
  A. 1 and 2

• Question 699:

  The board is concerned with the rising number of complaints being made about the organization's customer service and has asked the internal audit activity to undertake an urgent review to determine the underlying issues. According to IIA guidance, which of the following audit techniques would most likely be the most effective in these circumstances?

  A. Benchmarking with other organizations.
  B. Ratio, trend, and regression analysis.
  C. Root cause analysis.
  D. Substantive testing.
  C. Root cause analysis.

• Question 700:

  Which of the following statements concerning workpapers is the most accurate?

  A. The organization and the format of workpapers is the same for all engagements.
  B. The extent of what is included in workpapers is a matter of professional judgment.
  C. Workpapers should be complete so that every conceivable question that can be raised should be answered.
  B. The extent of what is included in workpapers is a matter of professional judgment.