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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 701:

  Which of the following actions by a new chief audit executive (CAE) best supports an internal auditor's ability to perform engagements with proficiency and due professional care?

  A. The CAE takes on multiple roles to increase his understanding of the organization.
  B. The CAE establishes policies and procedures to govern the internal audit process.
  C. The CAE communicates resource limitations and their impact to the board.
  D. The CAE works closely with management of the area under review to develop audit recommendations.
  B. The CAE establishes policies and procedures to govern the internal audit process.

• Question 702:

  Recommendations should be included in the audit report in order to:

  A. Provide management with options for addressing audit findings.
  B. Ensure that audit findings are resolved in the manner suggested by the auditor.
  C. Minimize the amount of time required to correct audit findings.
  D. Ensure that audit findings are addressed by management.
  A. Provide management with options for addressing audit findings.

• Question 703:

  Five brand managers in a consumer products company met to determine how well certain promotions had performed. The data that they needed to analyze consisted of approximately 50 gigabytes of daily point-of-sale (POS) data for each month. The brand managers tried to download the POS data from the mainframe and import it into microcomputer spreadsheets for analysis. Their efforts were unsuccessful, most likely because of:

  A. The complexity of the mainframe data structure and the large volume of data.
  B. The difficulty of establishing access privileges for each subset of the mainframe data.
  C. Inconsistencies in the mainframe data due to lack of integrity constraints on the data files.
  D. Error-prone transmission links for downloading the data from the mainframe data files.
  A. The complexity of the mainframe data structure and the large volume of data.

• Question 704:

  In which of the following situations would it be most appropriate to employ the services of a forensic specialist?

  A. Detection of unauthorized changes to source documents.
  B. Review for misapplication of general computer controls over accounts receivable.
  C. Investigation of ghost employees in a large business.
  D. Verification of xed assets in a manufacturing company.
  A. Detection of unauthorized changes to source documents.

• Question 705:

  In a payroll audit, a staff auditor suspects that signatures on some of the documents being sampled for examination are not authentic. What action should the auditor take before proceeding with the examination?

  A. Suggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.
  B. Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.
  C. Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.
  D. Review the suspicious documents with the chief audit executive and seek advice concerning further examination.
  D. Review the suspicious documents with the chief audit executive and seek advice concerning further examination.

• Question 706:

  The internal audit activity has become aware of public complaints regarding the sales practices of telephone marketing personnel in a large organization. The internal auditors decide to review a sample of all complaints within the last three

  months to ensure they are reflective of current marketing practices.

  Which of the following best describes this sampling technique?

  A. Judgmental sampling
  B. Random sampling
  C. Discovery sampling
  D. Statistical sampling
  A. Judgmental sampling

• Question 707:

  What does the following scatter gram suggest?

  A. Sales revenue is related to training costs.
  B. The training program is not effective.
  C. Increases in training costs consistently increase sales revenue.
  D. One data point is incorrectly plotted.
  A. Sales revenue is related to training costs.

• Question 708:

  Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

  1.Intervening during an audit involving ethical wrongdoing.

  2.Discussing periodic reports of ethical breaches.

  3.Authorizing an investigation of an unsafe product.

  4.Negotiating a settlement of an employee claim for personal damages.

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

• Question 709:

  Which of the following events would most likely cause the chief audit executive to consider changing the current year's audit plan?

  1.The government announced that new regulatory requirements will be introduced in the coming years which may significantly impact the organization's primary product.

  2.A major competitor unexpectedly introduced a new model at a lower price point to compete with the organization's market leading product.

  3.The organization announced a new joint venture with a long time corporate partner to introduce a new product with development costs and sales beginning next fiscal year.

  4.An equal joint venture partner led a lawsuit against the organization and requested that the court issue an immediate suspension of future product shipments.

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

• Question 710:

  Senior management of a dairy organization asks the internal audit activity to undertake an advisory service within the finance function and the internal audit activity subsequently issues a report. Which of the following is aligned with IIA guidance on monitoring the results of such an engagement?

  A. Senior management should dedicate a team to carry out a follow-up audit.
  B. A member of the finance function should undertake follow-up in line with the scope.
  C. Follow-up on the outcome of advisory services is not required.
  D. The internal audit activity should agree with senior management on the scope of a follow-up.
  D. The internal audit activity should agree with senior management on the scope of a follow-up.