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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 871:

  A chief audit executive has noticed that staff auditors are presenting more oral reports to supplement written reports. The best reason for the increased use of oral reports is that they:

  A. Reduce the amount of testing required to support audit findings.
  B. Can be delivered in an informal manner without preparation.
  C. Can be prepared using a exible format and reduce the information included in the written report.
  D. Permit auditors to counter arguments and provide additional information that the audience may require.
  D. Permit auditors to counter arguments and provide additional information that the audience may require.

• Question 872:

  The chief audit executive (CAE) authorized issuance of an interim report, enabling management to implement an action plan prior to receiving the final written audit report. When management informs the CAE that the action plan has been fully implemented, which is the most appropriate next step for the CAE to take?

  A. Verify that the associated risks originally raised are appropriately mitigated
  B. Authorize the issuance of the final written internal audit report
  C. Discuss the matter with the board of directors
  D. Discuss the matter with senior management
  A. Verify that the associated risks originally raised are appropriately mitigated

• Question 873:

  While reviewing the workpapers and draft report from an audit engagement, the chief audit executive (CAE) found that an important compensating control had not been considered adequately by the audit team when it reported a major control weakness.

  Therefore, the CAE returned the documentation to the auditor in charge for correction. Based on this information, which of the following sections of the workpapers most likely would require changes?

  1.Effect of the control weakness.

  2.Cause of the control weakness.

  3.Conclusion on the control weakness.

  4.Recommendation for the control weakness.

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

• Question 874:

  An audit of an organization's fulfillment department discovered that problems in the order processing system led to a significant number of orders being fulfilled multiple times. During the exit conference, the head of the department informed the auditors that the processing system would be enhanced within six months to correct the problems. Which course of action should the chief audit executive follow?

  A. Adjust the scope of the next scheduled audit to determine that the problems have been resolved.
  B. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
  C. Meet with the audit committee to determine the appropriate follow-up action.
  D. Assess the status of corrective action in a follow-up engagement in six months.
  B. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.

• Question 875:

  Which of the following is true about surveys?

  A. A survey with open-ended questions is weaker than a structured interview.
  B. A survey with closed-ended questions can produce quantifiable evidence.
  C. A survey's participants are likely to volunteer information that was not specifically requested.
  D. A survey, like inspections and Confirmations, are best used to test the operating effectiveness of controls.
  A. A survey with open-ended questions is weaker than a structured interview.

• Question 876:

  Which of the following is the best problem-solving technique to use when analyzing performance and cost?

  A. Value analysis.
  B. Attribute listing.
  C. Brainstorming.
  D. Component analysis.
  A. Value analysis.

• Question 877:

  A review of accounts receivable turnover represents which of the following manual audit procedures?

  A. Confirmation.
  B. Reperformance.
  C. Trend analysis.
  D. Ratio analysis.
  B. Reperformance.

• Question 878:

  According to the International Professional Practices Framework, which of the following would not be considered when performing an initial risk assessment in engagement planning?

  A. The reliability of management's assessment of risk.
  B. Management's process for monitoring, reporting, and resolving risk issues.
  C. Management's methodology for Defining risk criteria.
  D. Risks in related activities relevant to the activity under review.
  C. Management's methodology for Defining risk criteria.

• Question 879:

  The chief audit executive (CAE) should determine whether the internal audit activity has Confirmed the status of all of management's corrective actions. Doing so would help the CAE assess which of the following?

  A. Disclosure risk.
  B. Residual risk.
  C. Compliance risk.
  D. Inherent risk.
  C. Compliance risk.

• Question 880:

  Internal control questionnaires are used to achieve which of the following objectives?

  A. To ascertain the operating effectiveness of a procedure.
  B. To verify the accuracy of information in a report.
  C. To assess the controls mitigating major risks.
  D. To determine whether specified control procedures are in place.
  D. To determine whether specified control procedures are in place.