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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 841:

  An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:

  A. Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.
  B. Apply analytical procedures to areas that might be impacted by possible fraudulent activities.
  C. Interview employees to identify areas where the fraud could be occurring.
  D. Plan detailed tests of the areas that have the highest dollar amount of transactions.
  B. Apply analytical procedures to areas that might be impacted by possible fraudulent activities.

• Question 842:

  Which of the following best describes a risk that is deemed "unacceptable" to the organization?

  A. A risk where likelihood and impact are high.
  B. A risk where inherent risk exceeds its residual risk.
  C. A risk where inherent risk exceeds the tolerance level.
  D. A risk where residual risk exceeds the tolerance level.
  C. A risk where inherent risk exceeds the tolerance level.

• Question 843:

  In which of the following situations has an internal audit of obtained physical evidence?

  A. An internal auditor made purchases from several of the organization's retail outlets to evaluate customer service
  B. An internal auditor interviewed various employees regarding health and safety issues and recorded their answers
  C. An internal auditor obtained the current quarterly financial report and computed changes in deb-to-equity ratio
  D. An internal auditor received a signed confirmation regarding the terms of a transaction from an independent attorney
  A. An internal auditor made purchases from several of the organization's retail outlets to evaluate customer service

• Question 844:

  Which of the following is an advantage of nonstatistical sampling over statistical sampling?

  A. Nonstatistical sampling provides more objective recommendations for management.
  B. Nonstatistical sampling provides an opportunity to select the minimum sample size required to satisfy the objectives of the audit tests.
  C. Nonstatistical sampling provides for the use of subjective judgment in determining the sample size.
  D. Nonstatistical sampling permits the auditor to specify a level of reliability and the desired degree of precision.
  C. Nonstatistical sampling provides for the use of subjective judgment in determining the sample size.

• Question 845:

  Access control software on an organization's mainframe computer records detailed information concerning both successful and unsuccessful log-on attempts to applications. Which of the following audit tools would be best suited to review the access information that has been recorded?

  A. Generalized audit software.
  B. Flowcharting.
  C. Integrated test facility.
  D. Test data.
  A. Generalized audit software.

• Question 846:

  Management is concerned with the organization's disposal of pollutants into city's water treatment facility. Which of the following types of engagements and objectives is most appropriate to address the concern?

  A. An assurance engagement to determine the most economical facilitation of pollutant disposal.
  B. A due diligence engagement to determine the most economical facilitation of pollutant disposal.
  C. A performance engagement to determine whether the organization is meeting city financial regulations.
  D. An assurance engagement to determine whether the organization is meeting city regulations.
  D. An assurance engagement to determine whether the organization is meeting city regulations.

• Question 847:

  When starting an annually recurring assurance engagement on a process, the internal auditor considered that the process had only minor changes in the previous year. Therefore, the auditor decided to conduct the engagement by reperforming the tests Defined in the previous year's audit program. A few weeks later, an external authority detected that one of the recent process changes was noncompliant with national law, and the organization was heavily fined. What would have helped the auditor identity this noncompliance risk?

  A. Updating last year's heat map.
  B. Reviewing the current year's internal audit plan.
  C. Following up on management's implementation of the previous engagement's recommendations.
  D. Updating the risk and control matrix.
  D. Updating the risk and control matrix.

• Question 848:

  An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database. Instead, they were scanned and saved in a nonsystematic manner to server folders. Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

  A. The document management policy requires business client data to be stored in a specific management database
  B. Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it
  C. if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove
  D. All staff should be appropriately trained and required to follow the organization's established policies and procedures pertaining to document management
  C. if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove

• Question 849:

  According to the Standards, which of the following best describes the responsibility of the chief audit executive (CAE) for approving the final engagement report? The CAE is responsible for obtaining management approval before issuing the final report. The CAE has overall responsibility for the report but can delegate the review and approval of the report. The CAE is responsible for obtaining senior management's approval before releasing the final report. The CAE is responsible for approving to whom and how the final report will be disseminated.

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

• Question 850:

  Which of the following would be the most helpful to a chief audit executive when developing a talent management strategy?

  A. Gap analysis
  B. Staff preferences
  C. Maturity analysis
  D. Extent of external audit coverage
  A. Gap analysis