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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 731:

  Which of the following situations justifies the release of an interim report to management and the board? The internal auditor is convinced that the audit observations require immediate attention. The internal auditor would like to communicate a change in engagement scope for the activity under review. The internal auditor notes that the engagement may extend over a longer time period. The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.

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

• Question 732:

  A chief audit executive (CAE) is trying to balance the internal audit activity's needs for technical audit skills, budget efficiency, and staff development opportunities. Which of the following would best assist the CAE in achieving this balance?

  A. Strategic sourcing.
  B. Loan staff arrangement.
  C. Flat organizational structure.
  D. Hierarchical organizational structure.
  D. Hierarchical organizational structure.

• Question 733:

  Which of the following statements is true regarding engagement planning?

  A. The scope of the engagement should be planned according to the internal audit activity's budget and then aligned to the risk universe.
  B. The audit engagement objectives should be based on operational management's view of risk objectives.
  C. The planning phase of the engagement should be completed and approved before the fieldwork of the engagement begins.
  D. The main purpose of the engagement work program is to determine the nature and timing of procedures required to gather audit evidence.
  C. The planning phase of the engagement should be completed and approved before the fieldwork of the engagement begins.

• Question 734:

  Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?

  I. Facilitated meeting

  II. Survey

  III.

  Management-produced analysis

  A. I only
  B. I and III only
  C. II and III only
  D. I, II, and III
  C. II and III only

• Question 735:

  An internal audit team assigned to review the accounts payable area meets to discuss the audit approach. The team agrees to use a multipurpose tool to carry out three-way matching of invoices, purchase orders, and evidence of receipt for

  accuracy and validity.

  Which of the following would help the audit team with matching, re-computation, and reporting the outcome?

  A. Utility software
  B. Generalized audit software
  C. Audit expert systems
  D. Test data
  B. Generalized audit software

• Question 736:

  Which of the following options is the best practice for completing a risk and control matrix?

  A. Internal auditors complete the matrix based on observations in the area under review.
  B. Internal auditors coordinate with management of the area under review to complete the matrix together.
  C. Internal auditors delegate completion of the matrix to management of the area under review.
  D. Internal auditors coordinate with external auditors to complete the matrix.
  B. Internal auditors coordinate with management of the area under review to complete the matrix together.

• Question 737:

  Ordinarily, which of the following would not be an objective of an internal audit quality assurance review?

  A. Ensuring that the internal audit activity meets the external auditor's expectations.
  B. Ensuring that the internal audit activity has an audit charter approved by the board of directors.
  C. Complying with specific standards for the professional practice of internal auditing.
  D. Ensuring the adequacy of the goals, mission and vision of the internal audit activity.
  A. Ensuring that the internal audit activity meets the external auditor's expectations.

• Question 738:

  Two government agencies merged. One of the agencies specialized in tourism and exports, and had an internal audit activity. The other agency specialized in providing loans to local municipalities and nonprofit organizations, and did not have an internal audit activity. The chief audit executive (CAE) is assessing risks to prepare the annual audit plan for the merged entity and allocating audit resources. Which of the following statements is accurate?

  A. Since the agencies are considerably different in their nature, they cannot be handled within the same audit universe.
  B. Since the agencies are considerably different in their nature, the CAE will need to develop a separate methodology for the assessment of risks.
  C. Since the agencies are considerably different in their nature, the CAE may need to outsource services to obtain the necessary financial competencies.
  D. The CAE does not need to consider any changes in the existing internal audit sourcing model, as it has a successful track record.
  C. Since the agencies are considerably different in their nature, the CAE may need to outsource services to obtain the necessary financial competencies.

• Question 739:

  According to IIA guidance, which of the following are acceptable strategies for an internal audit activity (IAA) to establish or build relationships?

  A. Assist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization's executives.
  B. Assist executives with their administrative and governance responsibilities, and ensure that all communications with the board are formal audit reports or preset agendas.
  C. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and encourage all IAA members to develop relationships with the organization's executives.
  D. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and ensure that all communications with board are limited to formal reports or scheduled updates.
  A. Assist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization's executives.

• Question 740:

  Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?

  A. Identify and manage risks in line with the organization's risk appetite.
  B. Ensure that a proper and effective risk management process exists.
  C. Attain an adequate understanding of the organization's key risk mitigation strategies.
  D. Identify and ensure that appropriate controls exist to mitigate risks.
  C. Attain an adequate understanding of the organization's key risk mitigation strategies.