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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 721:

  Which of the following statements is consistent with IIA guidance regarding the use of mentoring for internal auditors?

  A. The mentor and the internal auditor should opt for informal meetings even if it means that no formal documentation will be created.
  B. The mentor relationship is usually not suitable for internal audit staff, as it does not lead to professional development.
  C. The value of mentoring is derived primarily from the personal relationship between the two parties involved, and the mentor's level of relevant experience should not be a key factor.
  D. The mentor should be the internal auditor's supervisor to ensure that the auditor's performance is assessed in a relevant and meaningful context.
  D. The mentor should be the internal auditor's supervisor to ensure that the auditor's performance is assessed in a relevant and meaningful context.

• Question 722:

  Which of the following statements is true regarding an internal audit team's decision to deploy an internal control questionnaire for the engagement?

  A. The information that can be obtained using this approach is limited.
  B. There are complexities with quantifying the information obtained using this approach.
  C. With this approach, respondents are likely to freely acknowledge inadequacies in the existing internal controls.
  D. This approach yields reliable results, therefore there would be no need to corroborate information obtained using this approach.
  B. There are complexities with quantifying the information obtained using this approach.

• Question 723:

  Which of the following would be the best starting point for an internal auditor to identify risks relevant to the area under review?

  A. Review the area's relevant policies and procedures.
  B. Review the organizationwide risk assessment.
  C. Review the recent external audit report.
  D. Review findings from previous internal audit reports.
  B. Review the organizationwide risk assessment.

• Question 724:

  An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation. Which of the following is the most appropriate conclusion for the auditor to include in the audit report?

  A. The organization incurred excessive cost overruns that resulted in significant financial and legal risk to the project.
  B. The organization experienced a potential conflict of interest.
  C. The organization had weaknesses in its review process, which allowed questionable transactions with some vendors.
  D. The organization allowed the project to launch without assurance that all transactions were regularly approved.
  D. The organization allowed the project to launch without assurance that all transactions were regularly approved.

• Question 725:

  When conducting research, which of the following is most important?

  A. Using computer databases or the Internet to find all relevant sources.
  B. Providing documentation of the reference sources.
  C. Presenting only those facts that support the conclusion.
  D. Presenting all contrary views to balance the opinion.
  B. Providing documentation of the reference sources.

• Question 726:

  An internal auditor would most likely use attributes sampling when testing which of the following?

  A. Accounts receivable balances.
  B. Correct coding of accounts payable disbursement vouchers.
  C. Year-end inventory value.
  D. Fixed asset book value.
  B. Correct coding of accounts payable disbursement vouchers.

• Question 727:

  Prior to performing testing, an internal auditor has determined that a primary process control failed due to design weakness. Which of the following actions should the auditor perform next?

  A. Determine whether there are any compensating controls in place to reduce the risk to an acceptable level, and discuss this matter with management of the business area to determine which corrective action is needed.
  B. Test the control anyway to determine the likelihood that the control was not performed properly, and discuss this matter with management of the business area to determine which corrective action is needed.
  C. Conclude that the process control environment is weak, issue a finding on this conclusion, and report this finding to management of the business area.
  D. Confer with a second internal auditor to determine whether the control failure is legitimate, issue a finding on this conclusion, and report this finding to management of the business area.
  A. Determine whether there are any compensating controls in place to reduce the risk to an acceptable level, and discuss this matter with management of the business area to determine which corrective action is needed.

• Question 728:

  A major insurance company provides a discount on automobile insurance if the vehicle meets certain safety criteria. Which of the following audit tests would provide an internal auditor with the best evidence that all qualifying insured automobiles are receiving the discount?

  A. Compare the percentage of automobiles receiving discounts this year to that of last year.
  B. Ask managers whether they are aware of the discount criteria and whether they are providing the discount to all qualifying automobiles.
  C. Select a sample of automobiles that are not receiving the discount and determine if they have been properly excluded.
  D. Select a sample of automobiles receiving the discount and determine that the required discount criteria are being met.
  C. Select a sample of automobiles that are not receiving the discount and determine if they have been properly excluded.

• Question 729:

  Which of the following statements is true?

  A. Consulting engagements provide the internal audit activity with exibility to add value and do not need to be included in the long-range audit plan.
  B. The internal audit activity's plan of engagments must be based on a formal quantitative risk assessment.
  C. The chief audit executive should consider changes to the long-range audit plan based on the requests of business unit managers.
  D. A risk assessment on which to base the internal audit activity's long-range plan must be undertaken at least once every three years.
  C. The chief audit executive should consider changes to the long-range audit plan based on the requests of business unit managers.

• Question 730:

  According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

  A. The CAE can release prior internal audit reports with the approval of the board and senior management.
  B. The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.
  C. The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.
  D. The CAE can release prior information provided it is as originally published and distributed within the organization.
  B. The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.