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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 821:

  While developing a risk based audit plan, which of the following sources of information would provide the least value to the chief audit executive?

  A. Results from the organization's business process management program.
  B. User acceptance testing of the organization's enterprise resource planning application.
  C. Risk assessments conducted by the board.
  D. Key business strategies adopted by the organization in the strategic plan.
  B. User acceptance testing of the organization's enterprise resource planning application.

• Question 822:

  The efficiency of internal audit operations is best enhanced if workpaper standards:

  A. Permit the extent of documentation to vary according to engagement objectives.
  B. Require supervisors to initial and date each workpaper that they review.
  C. Allow access to workpapers by external parties if approved by senior management or the audit committee.
  D. Mandate the workpaper retention period.
  A. Permit the extent of documentation to vary according to engagement objectives.

• Question 823:

  A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

  A. The corporate risk register.
  B. The strategic plan.
  C. Internal and external audit reports.
  D. The board's meeting records.
  B. The strategic plan.

• Question 824:

  An internal auditor's examination of accounts receivable generates the following results: What is the projected misstatement for the population if ratio estimation is used?

  

  A. $84,000
  B. $238,095
  C. $700,000
  D. $2,100,000
  B. $238,095

• Question 825:

  Which of the following risk assessment approaches involves gathering data from work teams representing different levels of an organization?

  A. Surveys.
  B. Management-produced analysis.
  C. Facilitated team workshops.
  D. Weighted risk factors.
  A. Surveys.

• Question 826:

  An internal auditor is asked to determine why the production line for a large manufacturing organization has be experiencing shutdowns due to unavailable parts. The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN). Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques. Which of the following audit procedures should be used to test the auditor's theory?

  A. Compare purchase orders generated from test data input into the LAN with purchase orders generated from production data for the most recent period.
  B. Develop a report of excess inventory and compare the inventory with current production volume.
  C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period.
  D. Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate.
  C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period.

• Question 827:

  Which of the following is correct with respect to roles within an enterprise-wide risk management process?

  1.The board provides oversight to the risk management process.

  2.Executive management owns the risk management framework.

  3.Senior management is assigned ownership of risks.

  4.Internal audit modi es the risk assessment determined by management.

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

• Question 828:

  An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been Modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if:

  I. In the opinion of the CAE, the level of residual risk assumed by senior management is too high.

  II. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.

  III.

  The cost of modifying the sales system to include a preventive control is less than $100,000.

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

• Question 829:

  The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

  A. Prices paid for selected materials with prices listed on related purchase orders.
  B. Bids obtained for selected purchases with related purchase orders.
  C. Vendors' current prices with prices listed on related purchase orders.
  D. Approved vendor lists with bids obtained for selected purchases.
  B. Bids obtained for selected purchases with related purchase orders.

• Question 830:

  After concluding a preliminary assessment, the engagement supervisor prepared a draft work program. According to IIA guidance, which of the following would be tested by this program?

  A. The process objectives.
  B. The process risks.
  C. The process controls.
  D. The process scope.
  A. The process objectives.