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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 881:

  During an internal audit engagement, which of the following is true regarding the decision to use statistical sampling or nonstatistical sampling?

  A. The decision affects the test procedures performed.
  B. The auditor's response to errors detected will be influenced.
  C. The competence of the evidence obtained is greater with statistical sampling.
  D. Nonstatistical sampling may be more cost effective.
  A. The decision affects the test procedures performed.

• Question 882:

  Which of the following is one of the key differences between probability-proportional-to-size sampling (PPS) and attribute sampling?

  A. PPS sampling is used to reach conclusions regarding monetary amounts, attribute sampling is not.
  B. PPS sampling is used to reach conclusions regarding rates of occurrence, attribute sampling is not.
  C. PPS sampling is applied within the context of testing controls, attribute sampling is not.
  D. Attribute sampling is affected by the monetary book value of the population, PPS sampling is not.
  A. PPS sampling is used to reach conclusions regarding monetary amounts, attribute sampling is not.

• Question 883:

  An internal auditor is planning an engagement in the wood pellet production unit. She reviews the balance sheet and notes considerable amounts of wood pellet produced for sale. She also learns that there was an accidental fire a few months ago that resulted in damages to produced goods. Which of the following would be the most appropriate way to establish whether amounts of pellet recorded in the balance sheet are correct?

  A. Send an inquiry to pellet production unit managers and ask them to respond promptly in the form of a signed Confirmation letter.
  B. Review monthly pellet production volumes and perform a reasonableness test to assess whether the amount recorded is reasonable, giving consideration to inventory losses from the fire.
  C. Request data on sold and produced wood pellets and analyze whether the difference reconciles with the balance sheet.
  D. Conduct a surprise physical inspection and inventory of wood pellets at the production site.
  D. Conduct a surprise physical inspection and inventory of wood pellets at the production site.

• Question 884:

  An internal auditor is assessing the design of a control and has identified a potential significant weakness. The auditor shared his concern with management; however, management does not agree that the weakness is significant. What should the internal auditor do next?

  A. Perform additional audit work to better articulate the risk.
  B. Report the finding that management has accepted a level of risk that is unacceptable.
  C. Proceed to testing how effectively the control is operating.
  D. Because the design weakness has been identified, no additional audit work is needed.
  A. Perform additional audit work to better articulate the risk.

• Question 885:

  An internal auditor receives a document displaying all the steps of a process and the path taken as transactions flow between each step of the process. How is the internal auditor most likely to use this document during the engagement?

  A. To perform an assessment of the adequacy of process controls.
  B. To perform an assessment of the effectiveness of process controls.
  C. To perform a detailed assessment of process risks.
  D. To perform an assessment of the Sufficiency of residual process risks.
  B. To perform an assessment of the effectiveness of process controls.

• Question 886:

  During a project management assurance engagement, the chief audit executive instructed an internal auditor to select a sample of items using the most objective method. Which of the following methods should the internal auditor use?

  A. Random sampling
  B. Judgmental sampling
  C. Stratified random sampling
  D. Agile random sampling
  A. Random sampling

• Question 887:

  According to IIA guidance, which of the following is true regarding audit supervision?

  1.Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement.

  2.Supervision should extend to training, time reporting, and expense control, as well as administrative matters.

  3.Supervision should include review of engagement workpapers, with documented evidence of the review.

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

• Question 888:

  An organization's policies allow buyers to authorize expenditures up to $50,000 without any other approval. Which of the following audit procedures would be most effective in determining if fraud in the form of payments to ctitious companies has occurred?

  A. Use generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.
  B. Develop a snapshot technique to trace all transactions by suspected buyers.
  C. Use generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.
  D. Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.
  D. Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.

• Question 889:

  An internal audit develops an engagement observation related to an organization's accumulation of large travel advances. The auditor observes that the organization's procedures do not require Justification for travel agencies greater than a specific amount. Which of the following best describes the organization's procedures?

  A. A criterion of the organization's accumulation of large travel advances.
  B. A condition of the organization's accumulation of large travel advances.
  C. A consequence of the organization's accumulation of large travel advances.
  D. A cause of the organization's accumulation of large travel advances.
  D. A cause of the organization's accumulation of large travel advances.

• Question 890:

  Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?

  1.Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.

  2.Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.

  3.Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.

  4.Communicate to senior management a summary report on the status and adequacy of audit resources.

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