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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 81:

  Monetary-unit sampling is most useful when the internal auditor:

  A. Is testing the accounts payable balance.
  B. Cannot cumulatively arrange the population items.
  C. Expects to find several material errors in the sample.
  D. Is concerned with overstatements.
  D. Is concerned with overstatements.

• Question 82:

  Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?

  1.Disregard a certain risk because management and the board accepted the risk in the past.

  2.Abdicate the responsibility for a particular risk because it is not part of the audit plan.

  3.Obtain agreement from senior management that unresolved audit issues will be reported to the board. Request corrective action from management in writing.

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

• Question 83:

  The following is an excerpt from an audit engagement workpaper:

  1. A Company

  2. Accounts Receivable

  3. Date

  Objective. To determine if the computer system is correctly recording all accounts receivable transactions.

  Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive Confirmation of balances.

  Conclusion: Based on the results of testing wherein all but three Confirmations were returned, the accounts receivable balance is fairly presented in all material respects.

  Which of the following is true regarding the workpaper?

  A. It is not appropriate to judgmentally select a sample when testing accounts receivable.
  B. A conclusion should be reached only for the results of overall testing, not for individual procedures.
  C. The audit procedures used are not consistent with the audit objective.
  D. The format of the workpaper does not conform to the standard format for workpapers.
  C. The audit procedures used are not consistent with the audit objective.

• Question 84:

  According to the International Professional Practices Framework, the internal audit activity's decision to defer follow-up of recommendations and management's corrective actions until the next scheduled engagement for the area is justified when:

  A. The reported findings or recommendations are significant enough to require immediate action by management.
  B. The action taken by management to address the recommendation is sufficient when weighed against the importance of the finding.
  C. Management has adequately understood and appropriately accepted the risk of not taking action to implement the recommendation.
  D. The significance of the finding or recommendation will allow auditors to perform monitoring by receiving periodic updates from management on corrective actions.
  B. The action taken by management to address the recommendation is sufficient when weighed against the importance of the finding.

• Question 85:

  Questions used to interrogate individuals suspected of fraud should:

  A. Adhere to a predetermined order.
  B. Cover more than one subject or topic.
  C. Move from general to specific.
  D. Direct the individual to a desired answer.
  C. Move from general to specific.

• Question 86:

  Which of the following tasks is typically performed in the analysis phase of a benchmarking consulting engagement?

  A. Identifying business capabilities.
  B. Developing data collection tools.
  C. Determining benchmarked process attributes.
  D. Determining sample size.
  C. Determining benchmarked process attributes.

• Question 87:

  A company's cellular phone costs vary significantly by sales representative and by month. Which of the following would be the most appropriate approach for a consulting project concerning this issue?

  A. Control self-assessment involving sales representatives.
  B. Benchmarking with other cellular phone users.
  C. Business process review of cellular phone needs.
  D. Performance measurement and design of the budgeting process.
  C. Business process review of cellular phone needs.

• Question 88:

  Confirmation would be most effective in addressing the existence assertion for:

  A. The addition of a milling machine to a machine shop.
  B. Sales of merchandise during the regular course of business.
  C. Inventory held on consignment.
  D. The granting of a patent for a special process developed by the organization.
  C. Inventory held on consignment.

• Question 89:

  An internal auditor noticed that employees responsible for the warehouse do not record movements of goods in a timely fashion and do not seem to consider this activity as a priority. Which of the following techniques would help the auditor understand the causes behind their perspective?

  A. Turnover analysis.
  B. "Five whys" analysis.
  C. Surprise count analysis.
  D. Process map analysis.
  B. "Five whys" analysis.

• Question 90:

  An internal auditor determines that certain information from the engagement results is not appropriate for disclosure to all report recipients because it is privileged. In this situation, which of the following actions would be most appropriate?

  A. Disclose the information in a separate report.
  B. Distribute the information in a confidential report to the board only.
  C. Distribute the reports through the use of blind copies.
  D. Exclude the results from the report and verbally report the conditions to senior management and the board.
  A. Disclose the information in a separate report.