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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 741:

  An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?

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

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

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

  IV.

  Do nothing because management has agreed to address the problem.

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

• Question 742:

  When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

  A. The overall adequacy of the internal audit activity's resources.
  B. The availability of guest auditors for the engagement.
  C. The number of internal auditors used for the previous review of the same area.
  D. The available resources with the specific skill set required.
  D. The available resources with the specific skill set required.

• Question 743:

  An audit of an organization's claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:

  A. Adjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.
  B. Discuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.
  C. Schedule a follow-up engagement within six months to assess the status of corrective action.
  D. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
  D. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.

• Question 744:

  Which of the following factors is least essential to a successful control self-assessment workshop?

  A. Voting technology.
  B. Facilitation training.
  C. Prior planning.
  D. Group dynamics.
  A. Voting technology.

• Question 745:

  To mitigate the risk of fraud, an organization has a policy whereby expense reports with accompanying purchasing card receipts must be authorized and approved by the cardholder's manager. Sample testing revealed that a particular manager had authorized expense reports without reviewing the supporting receipts. Some of the receipts pertained to purchasing liquor, which is not allowed under the organization's policy. Based on this scenario, what is the internal auditor most likely to conclude?

  A. The design of the controls is adequate; however, the operation is not effective.
  B. The design of the controls is not adequate; however, the operation of existing controls is effective.
  C. The design of the controls is not adequate, and the operation of the controls is not effective.
  D. This design of the controls does not address the risk of misuse.
  A. The design of the controls is adequate; however, the operation is not effective.

• Question 746:

  How should an internal auditor approach preparing a detailed risk assessment during engagement planning?

  A. Complete the risk assessment independently to prevent conflicts of interest with the function being reviewed.
  B. Work with external auditors to ensure that the risk assessment includes items reflected on the independent auditor's
  C. Work with management of the function being reviewed, as management would be most familiar with the business objectives and related risks.
  D. Consult with the compliance department, which typically has a more comprehensive view of the organization.
  C. Work with management of the function being reviewed, as management would be most familiar with the business objectives and related risks.

• Question 747:

  Which of the following would not include recommendations for process improvements?

  A. Due diligence engagement.
  B. Forensic investigation.
  C. Internal audit engagement.
  D. Consulting engagement.
  A. Due diligence engagement.

• Question 748:

  According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

  A. Communication of any internal ethics violations to external parties may occur with appropriate safeguards.
  B. Cultural impacts are less critical where the organization practices uniform polices around the globe.
  C. Cross-cultural differences should always be handled by the staff of the same cultural background.
  D. Local law enforcement should be involved as they are more familiar with the applicable local laws.
  A. Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

• Question 749:

  While performing fieldwork for an assurance engagement, a member of the internal audit team identified a key control that was not identified during the planning phase of the engagement. Which of the following actions by the internal auditor would be most appropriate?

  A. Promptly adjust the audit work program to include tests that address the newly identified control, and notify the other audit team members of the change.
  B. Proceed with the current audit work program, because the engagement scope has already been finalized, but plan to address the newly identified control as part of the follow up engagement.
  C. Adjust the audit work program to account for the new control, but only with approval from the engagement supervisor.
  D. Discuss the control with management of the area under review and seek their approval prior to including the control in the current audit engagement.
  A. Promptly adjust the audit work program to include tests that address the newly identified control, and notify the other audit team members of the change.

• Question 750:

  Management's testimony of improper segregation of duties in the cash receipt process can be considered which of the following?

  A. Analytical.
  B. Reliable.
  C. Relevant.
  D. Sufficient.
  C. Relevant.