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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 851:

  Which of the following controls in a computerized consumer loan system of a major bank would be the least effective in detecting a fraudulent loan?

  A. All log-in accounts become inaccessible after three incorrect password attempts.
  B. Loan approvals over a pre-determined limit must have management approval.
  C. Customer information is matched to payment data prior to funds disbursement.
  D. System controls prevent supervisors from delegating their approval authority during vacation periods.
  A. All log-in accounts become inaccessible after three incorrect password attempts.

• Question 852:

  Which of the following is the main criterion when an internal auditor is deciding between the use of statistical and non-statistical sampling?

  A. Results of a cost-benefit assessment.
  B. Non-sampling audit risk.
  C. Requirement of audit evidence.
  D. Outcome of risk and control assessment.
  A. Results of a cost-benefit assessment.

• Question 853:

  A checklist questionnaire would yield the most useful results for which of the following audit engagements?

  A. A compliance audit on adherence to personal data protection legislation and centralized procedures established in all subsidiaries.
  B. A compliance audit in the field of procurement where different regulations and practices are applicable for each subsidiary.
  C. An operational audit in factories, each of which produces a different product and is governed by locally developed regulations and manuals.
  D. A financial audit in subsidiaries located in Europe, North America, and Asia and applying to each country's accounting standards.
  A. A compliance audit on adherence to personal data protection legislation and centralized procedures established in all subsidiaries.

• Question 854:

  An internal auditor found that when the number of transactions processed increases, the number of errors increases. What can be concluded from this observation?

  A. There is a linear correlation between the two factors
  B. The errors are mainly caused by human error during transaction processing
  C. There is a relationship between the two factors
  D. One factor causes the other
  C. There is a relationship between the two factors

• Question 855:

  During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?

  A. Receive periodic feedback from museum staff regarding the status of the system implementation.
  B. Monitor the system implementation and schedule a follow-up review once the new system is in place.
  C. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.
  D. Schedule an audit of the museum's security systems to determine if theft is a problem.
  C. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.

• Question 856:

  An auditor plans to analyze customer satisfaction, including:

  (1)

  customer complaints recorded by the customer service department during the last three months;

  (2)

  merchandise returned in the last three months; and

  (3)

  responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?

  A. Although useful, such an analysis does not address any risk factors.
  B. The survey would not consider customers who did not make purchases in the last three months.
  C. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.
  D. Analysis of three months' activity would not evaluate customer satisfaction.
  B. The survey would not consider customers who did not make purchases in the last three months.

• Question 857:

  According to IIA guidance, which of the following statements is true regarding engagement planning?

  A. For both assurance and consulting engagements, planning typically occurs after the engagement objectives and scope have already been determined.
  B. The expectations and objectives of an assurance engagement are usually determined by, or in conjunction with, the engagement client.
  C. Internal auditors may not need to complete a preliminary risk assessment for a consulting engagement as they would when planning an assurance engagement.
  D. For both consulting and assurance engagements, internal auditors usually form the engagement objectives prior to completing the preliminary risk assessment.
  C. Internal auditors may not need to complete a preliminary risk assessment for a consulting engagement as they would when planning an assurance engagement.

• Question 858:

  Which of the following is an advantage of an interim report?

  I. An interim report provides timely feedback to the audit engagement client.

  II. An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated.

  III. An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed.

  IV.

  An interim report increases the probability that corrective action will be initiated more quickly.

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

• Question 859:

  Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate. When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?

  1.The hedge documentation designating the hedge.

  2.The spot exchange rate on the transaction date.

  3.The terms of the forward contract.

  4.The amount of fuel purchased.

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

• Question 860:

  Which of the following is most appropriate when conducting an interview during the course of a fraud investigation?

  A. Schedule the interview well in advance.
  B. Explain the detailed purpose to the interviewee.
  C. Assume that the interviewee is guilty.
  D. Have a witness present during the interview.
  D. Have a witness present during the interview.