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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 891:

  Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account?

  A. Periodic reviews of the inventory's obsolescence.
  B. Shipment advices received by the accounting department.
  C. An inventory count undertaken by warehouse personnel.
  D. The inclusion of overhead costs in the inventory's value.
  A. Periodic reviews of the inventory's obsolescence.

• Question 892:

  A performance audit engagement typically involves:

  A. Review of financial statement information, including the appropriateness of various accounting treatments.
  B. Tests of compliance with policies, procedures, laws, and regulations.
  C. Appraisal of the environment and comparison against established criteria.
  D. Evaluation of organizational and departmental structures, including assessments of process flows.
  C. Appraisal of the environment and comparison against established criteria.

• Question 893:

  Which of the following is the primary weakness of internal control questionnaires (ICQs)?

  A. ICQs do not allow for open-ended questions.
  B. ICQs do not allow for evaluating multiple locations.
  C. ICQs require significant auditor follow-up, as different managers may give different responses.
  D. ICQ respondents have incentives to answer that there are internal controls in place.
  D. ICQ respondents have incentives to answer that there are internal controls in place.

• Question 894:

  Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?

  A. Pre-numbered customer invoices.
  B. Accounts receivable transactions.
  C. Pre-numbered shipping documents.
  D. Customer purchase orders.
  C. Pre-numbered shipping documents.

• Question 895:

  Which role is not considered a change agent when an organization wants to implement structural changes?

  A. Senior management.
  B. Line management.
  C. Independent consultant.
  D. Shareholder.
  D. Shareholder.

• Question 896:

  According to IIA guidance, which of the following is an assurance service commonly performed by the internal audit activity?

  A. Proposing line item recommendations for the annual financial budget of the accounting department.
  B. Making recommendations regarding financial approval authority limits for the operations department.
  C. Validating whether employees are following established policies and procedures in the procurement department.
  D. Generating expense report metrics for employees in the finance department.
  C. Validating whether employees are following established policies and procedures in the procurement department.

• Question 897:

  Which of the following audit techniques provides for continuous monitoring and analysis of computer transactions for detailed auditing?

  A. Integrated test facility.
  B. Parallel simulation.
  C. Test data.
  D. Embedded audit routines.
  D. Embedded audit routines.

• Question 898:

  Which of the following reasonably represents best practices regarding what should be the level of internal audit resource investment in monitoring and following up on engagement outcomes?

  A. Limited resources should be employed since the actual engagement is already completed and the onus of corrective actions rests with management.
  B. No resources should be exclusively deployed for that at all, rather it should be planned as part of future engagements in the same area.
  C. Resources should only be provided towards this if doing so does not result in depletion of resources for new engagements planned in the current period.
  D. Resources should be allocated to this without conditions as long as doing so meets the expectations of management and the judgment of the chief audit executive.
  A. Limited resources should be employed since the actual engagement is already completed and the onus of corrective actions rests with management.

• Question 899:

  The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

  A. Determining if controls over record keeping and reporting are adequate and effective.
  B. Reviewing data provided by information systems to test compliance with external requirements.
  C. Determining if information systems provide management with timely information.
  D. Determining if information systems provide complete information.
  A. Determining if controls over record keeping and reporting are adequate and effective.

• Question 900:

  In which of the following situations would an internal control questionnaire best suit the internal auditor's purpose?

  A. The auditor wants to receive mid-level management insight on how to improve hiring practices.
  B. The auditor wants to obtain information on whether adherence to approval matrices is actually taking place in different maintenance units.
  C. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures.
  D. The auditor wants to assess whether different subsidiaries apply centrally established procurement rules in the same manner.
  C. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures.