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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 861:

  According to IIA guidance, which of the following best describes reliable information?

  A. Reliable information is factual, adequate, and convincing so that a prudent, informed person would reach the same conclusions as the internal auditor.
  B. Reliable information is the best attainable information through the use of appropriate engagement techniques.
  C. Reliable information supports engagement observations and recommendations and is consistent with the objectives for the engagement.
  D. Reliable information helps the organization and the internal audit activity meet its goals.
  A. Reliable information is factual, adequate, and convincing so that a prudent, informed person would reach the same conclusions as the internal auditor.

• Question 862:

  After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted. Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?

  A. The CAE should send the final report to operational and senior management and the audit committee.
  B. The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.
  C. The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.
  D. The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified, but opportunities for improvement were noted.
  D. The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified, but opportunities for improvement were noted.

• Question 863:

  The chief audit executive (CAE) mentions to management that the internal audit activity plans to include an engagement addressing a significant emerging industry risk on the audit plan. Management informs the CAE that the compliance

  department is already scheduled to perform assurance work related to the risk.

  What must the CAE do to determine whether or not to add the proposed engagement to the audit plan?

  A. Assess the independence, objectivity, and competence of the compliance department with regard to the work being performed.
  B. Inquire of compliance department management about whether they have the authority to perform the work.
  C. Review the audit universe for additional engagements that may be available to add to the audit plan instead.
  D. Survey management to determine whether it is necessary to duplicate the work of the compliance department.
  A. Assess the independence, objectivity, and competence of the compliance department with regard to the work being performed.

• Question 864:

  An internal auditor is planning an audit of the organization's IT general controls. Which of the following would be an appropriate planning activity for this audit engagement?

  A. Conduct a walkthrough to understand and identify system-reliant processes.
  B. Conduct interim and preliminary IT general controls engagement communications.
  C. Conduct an inquiry to gather relevant formulas and scripts for the systems.
  D. Conduct an evaluation to assess system controls effectiveness.
  A. Conduct a walkthrough to understand and identify system-reliant processes.

• Question 865:

  A code of ethics within the internal auditing profession is necessary in order to:

  A. Reduce the likelihood that members of the profession will be sued for substandard work.
  B. Ensure that all members of the profession perform at approximately the same level of competence.
  C. Provide guidance to internal auditors in their service to others.
  D. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
  C. Provide guidance to internal auditors in their service to others.

• Question 866:

  Which of the following would have the least impact (either positive or negative) on an assessment of a department's control environment?

  A. The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.
  B. The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.
  C. Many department functions were duplicated or verified by other department employees as part of the department's normal procedures.
  D. Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.
  A. The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.

• Question 867:

  Which of the following has the greatest effect on the efficiency of an audit?

  A. The complexity of defficiency findings.
  B. The adequacy of preliminary survey information.
  C. The organization and content of workpapers.
  D. The method and amount of supporting detail used for the audit report.
  B. The adequacy of preliminary survey information.

• Question 868:

  An internal auditor discovered several instances where the wrong products were shipped to the organization's customers. Which of the following proposed actions would be most effective to mitigate the risk of similar future incidents?

  A. Ensure that the correct products are resent immediately upon discovery of the error.
  B. Apply product quality control procedures.
  C. Reconcile products to be shipped with the sales order.
  D. Send a copy of the back order to the shipping department.
  C. Reconcile products to be shipped with the sales order.

• Question 869:

  What is the most important risk in determining the validity of construction delay claims?

  A. Contractor claims may be submitted prior to completion of the work.
  B. Contractor claims may include costs considered in the fixed-price portion of the work.
  C. Contractor claims may include subcontractor estimates of balances due to the subcontractor.
  D. Contractor claims may be understated.
  B. Contractor claims may include costs considered in the fixed-price portion of the work.

• Question 870:

  During follow-up, the internal auditor discovered that operational management did not implement effective actions to address a significant control breach. If the issue is left unresolved, it may result in regulatory sanctions and damage the organization's reputation. What is the most appropriate next step for the chief audit executive to take?

  A. Report the matter to the board
  B. Implement the recommended control to address the exposure
  C. Discuss the matter with senior management
  D. Ask the regulatory agency to persuade management to address the issue
  C. Discuss the matter with senior management