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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 711:

  Which of the following are typical steps in the design of an organization's performance measurement system?

  A. Understand organizational strategy; perform a situational assessment; establish measurement categories; and take actions based upon measurement results.
  B. Categorize performance measures; establish a data collection plan; analyze data; and predict future performance.
  C. Establish a measurement plan; create an organizational strategy linked to those measurements; trend measurement data; and measure data variability.
  D. Perform a situational assessment; generate macro measurements; review measurement data; and change strategy based upon measurement results.
  A. Understand organizational strategy; perform a situational assessment; establish measurement categories; and take actions based upon measurement results.

• Question 712:

  An internal auditor examined a nonstatistical sample of open accounts receivable balances and discovered that 10 out of 60 exceeded the approved, unsecured credit limit threshold Defined by the organization's policy. What should the auditor document in the workpapers?

  A. Credit limit overdrafts are not monitored in accordance with the organization's policy.
  B. Seventeen percent of customers' open balances in the sample exceed their approved, unsecured credit limit.
  C. The threshold for credit limits Defined by the organization's policy is not adequate.
  D. Management should perform monthly monitoring of open customer balances.
  A. Credit limit overdrafts are not monitored in accordance with the organization's policy.

• Question 713:

  During an engagement the internal auditors reported that the organization was paying suppliers without receiving the merchandise. Management responded that it would immediately establish the use of receiving reports. As part of the follow-up activity, which of the following procedures would be the most appropriate in determining that management action was implemented?

  A. Ask management if the new policy related to the receiving reports is in place.
  B. Select a sample of receiving reports and determine if payments were made.
  C. Interview warehouse employees to ascertain adherence to new policy.
  D. Select a sample of payments and determine if a receiving report exists.
  D. Select a sample of payments and determine if a receiving report exists.

• Question 714:

  Which of the following is an effective way for an internal auditor to improve communications with the client during a contentious audit?

  A. Encourage the client to participate as a partner in the decision-making process to determine the changes that need to be made.
  B. Clearly explain to the client the role of the internal audit activity in the change process.
  C. Obtain the support of the board of directors for proposed changes before discussing the changes with operating management.
  D. Speak privately with key client personnel immediately after proposed changes are announced to address their concerns.
  A. Encourage the client to participate as a partner in the decision-making process to determine the changes that need to be made.

• Question 715:

  An internal auditor is planning an assurance engagement. The auditor first reviews the department's business objectives. What is the next step?

  A. Review control activities.
  B. Evaluate potential risks.
  C. Establish risk management roles.
  D. Set the scope of the engagement.
  B. Evaluate potential risks.

• Question 716:

  According to IIA guidance, which of the following is the most appropriate action to be taken by the chief audit executive (CAE) if management refuses to accept audit recommendations and implement corrective actions, even after escalation to senior management?

  A. The CAE should continue to meet with management to obtain their agreement for corrective action.
  B. The CAE should note in the final report that management has decided to accept the risk.
  C. The CAE should ask that additional testing be undertaken to strengthen his case as to the need for corrective action.
  D. The CAE should advise senior management of his intention to escalate the matter to the board.
  D. The CAE should advise senior management of his intention to escalate the matter to the board.

• Question 717:

  What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?

  A. Spontaneous agreement.
  B. Consensus building.
  C. Majority voting.
  D. Compromise.
  B. Consensus building.

• Question 718:

  Which of the following statements about assurance maps is correct?

  A. An assurance map is used by the chief audit executive to coordinate assurance activities with other internal and external assurance providers.
  B. An assurance map is a picture of all assurance engagements performed by the internal audit activity across the organization.
  C. An assurance map is used by the engagement supervisor to coordinate the roles of various internal audit team members assigned to assurance engagements.
  D. An assurance map lists the procedures and testing activities performed by an internal audit team during an assurance engagement.
  A. An assurance map is used by the chief audit executive to coordinate assurance activities with other internal and external assurance providers.

• Question 719:

  Which of the following constitutes supervisory activity undertaken during the planning phase of an assurance engagement?

  A. Ensuring the process owner agrees with the engagement objectives.
  B. Reviewing engagement draft reports.
  C. Ensuring workpapers support audit findings.
  D. Approving audit work programs.
  C. Ensuring workpapers support audit findings.

• Question 720:

  According to IIA guidance, which of the following statements is true regarding the annual audit plan?

  A. The annual audit plan should only be adjusted in response to problems with resourcing, scope, and data availability
  B. The chief audit executive (CAE) may incorporate risk information, including risk appetite levels from management, for the audit plan at her discretion
  C. In an immature risk management environment, it is preferable for the CAE to rely solely on her judgment regarding risk identification and assessment to develop the audit plan.
  D. The CAE may make adjustments to the annual audit plan as needed without senior management or board approval
  D. The CAE may make adjustments to the annual audit plan as needed without senior management or board approval