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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 71:

  An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?

  1.Allow the auditor to decide whether to extend the audit engagement.

  2.Determine whether the work already completed is sufficient to conclude the engagement.

  3.Provide the auditor feedback on areas of improvement for future engagements.

  4.Provide the auditor with instructions and directions to complete the audit.

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

• Question 72:

  According to IIA guidance, which of the following is a limitation of a heat map?

  A. Impact cannot be represented on a heat map unless it is quantified in financial terms.
  B. Impact and likelihood at times cannot be differentiated as to which is more important.
  C. A heat map cannot be used unless a risk and control matrix has been developed.
  D. Qualitative factors cannot be incorporated into a heat map.
  B. Impact and likelihood at times cannot be differentiated as to which is more important.

• Question 73:

  Which of the following should be described in the recognition element of a typical internal audit report?

  A. Positive aspects of the process or area under review.
  B. A brief synopsis of the process or area under review.
  C. Outcomes and ratings of the process or area under review.
  D. Report issuance and the communication process of the engagement.
  A. Positive aspects of the process or area under review.

• Question 74:

  While preparing the annual audit plan, the newly assigned chief audit executive (CAE) learns that the organization has not yet implemented a risk framework. Which of the following would be the most appropriate action for the CAE to take regarding potential engagements?

  A. Prioritize the engagements that were not done in previous years and schedule them for the upcoming year.
  B. Consult with senior management and the board and make adjustments regarding risk.
  C. Review all outstanding recommendations from prior audit engagements and focus on them in the upcoming year.
  D. Use the previous three-year audit plan to extrapolate potential engagements for the upcoming year's schedule of engagement.
  B. Consult with senior management and the board and make adjustments regarding risk.

• Question 75:

  The audit plan requires a review of the testing procedures used in pre-production of a large information system prior to its live launch. If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?

  A. Contract with the software vendor to provide an appropriate resource.
  B. Ask for a knowledgeable resource from the IT department.
  C. Make use of an external service provider.
  D. Request audit resources through the external auditor.
  C. Make use of an external service provider.

• Question 76:

  organization's processes, developed a scale to assess each risk, and allocated the relative importance of each risk. Which of the following approaches did the auditor take?

  A. Top-down approach.
  B. Process-matrix approach.
  C. Risk-factor approach.
  D. Bottom-up approach.
  B. Process-matrix approach.

• Question 77:

  Senior IT management requests the internal audit activity to perform an audit of a complex IT area. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement. Which of the following is the most appropriate action for the CAE to take?

  A. Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.
  B. Accept the audit engagement and use the engagement as an opportunity to develop the audit team's IT expertise while performing the audit work.
  C. Temporarily hire an experienced and knowledgeable IT analyst from the organization's IT department to lead the audit.
  D. Outsource the audit engagement to a reputable IT audit consulting firm.
  D. Outsource the audit engagement to a reputable IT audit consulting firm.

• Question 78:

  Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?

  I. Computerized tests to assess transaction reasonableness and validity.

  II. Review of log books to ensure that transactions are logged upon receipt.

  III. Edit checks to identify unusual transactions.

  IV.

  Verification of limitations on the authority of users to initiate specific EDI transactions.

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

• Question 79:

  Internal auditors performed an engagement to assess the internal controls of the inventory management processes. The auditors find that policies and procedures of inventory management are in place. The auditors also find that a few

  inventory write-off forms cannot be located.

  What conclusion should the auditors draw?

  A. The internal controls are adequately designed and effectively operated.
  B. The internal controls are inadequately designed but effectively operated.
  C. The internal controls are inadequately designed and ineffectively operated.
  D. The internal controls are adequately designed but ineffectively operated.
  D. The internal controls are adequately designed but ineffectively operated.

• Question 80:

  During an assurance engagement, the internal auditor noticed that the chief financial officer (CFO) solely authorized a transaction to sell carbon credits with a total value of $25 million. Which of the following criteria is most likely to assist the auditor in drawing a conclusion?

  A. The CFO's explanation regarding the priority of the transaction.
  B. The essence of the transaction authorized by the CFO.
  C. The conditions of the letter of authorization issued to the CFO.
  D. The internal auditor's professional judgement of the situation.
  B. The essence of the transaction authorized by the CFO.