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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 901:

  An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the businesscontrols. Which of the following is the most appropriate course of action for the internal audit team leader?

  A. Defer the engagement until a system of internal control has been established
  B. Change the scheduled engagement from assurance to consulting to help correct the shortcomings
  C. Add a consulting component to the already scheduled assurance engagement
  D. Seek the involvement of the external auditor to assist with improving the internal controls
  C. Add a consulting component to the already scheduled assurance engagement

• Question 902:

  Which of the following should an internal auditor document in the audit workpapers in support of the engagement's objectives to assess whether purchases made by the procurement department were valid and authorized?

  A. A current organizational chart of the procurement department.
  B. An approved procurement budget for the current financial year.
  C. A current delegation of authority and limits for procurement of materials and services.
  D. A current list of qualified vendors who have met the department's vendor standards.
  C. A current delegation of authority and limits for procurement of materials and services.

• Question 903:

  Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

  A. The standard of living of one of the purchasing agents has increased.
  B. The internal control structure has significant weaknesses.
  C. The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
  D. The cost of goods procured seems to be excessive in comparison with previous years.
  C. The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.

• Question 904:

  Which of the following would most likely form part of the engagement scope?

  A. Potential legislation on privacy topics will be employed as a compliance target.
  B. Wire transfers that exceeded $10,000 in the last 12 months will be analyzed.
  C. Both random and judgmental samplings will be used during the engagement.
  D. The probability of significant errors will be considered via risk assessment.
  B. Wire transfers that exceeded $10,000 in the last 12 months will be analyzed.

• Question 905:

  An internal auditor has been asked to participate in an advisory capacity to assist a committee in redesigning the organization's current financial reports to provide better information to management and the board. Which of the following actions on the part of the auditor would provide the greatest value to this project?

  A. The internal auditor has a set of generic report templates from a former project and presents them to the group because they worked so well for the previous employer.
  B. The internal auditor interviews each stakeholder and documents the requirements and preferences of each and creates a report template that meets as many of the requirements and preferences as possible.
  C. The internal auditor gathers the stakeholder group and holds a brainstorming session where they generate report requirements and preferences and then rank them in order of importance.
  D. The internal auditor undertakes a project to gather report templates and formats from other organizations in the same line of business and presents them all to the committee for consideration and discussion.
  C. The internal auditor gathers the stakeholder group and holds a brainstorming session where they generate report requirements and preferences and then rank them in order of importance.

• Question 906:

  An internal auditor has access to the organization's vendor master file and is using data analytics software to assist in identifying potential conflicts of interest between employees and vendors. Which of the following would most likely help the auditor identify potential conflicts?

  A. Vendor number
  B. Vendor's approval date.
  C. Vendor address.
  D. Vendor email.
  C. Vendor address.

• Question 907:

  According to IIA guidance, which of the following statements are true regarding the internal audit plan?

  1.The audit plan is based on an assessment of risks to the organization.

  2.The audit plan is designed to determine the effectiveness of the organization's risk management process.

  3.The audit plan is developed by senior management of the organization.

  4.The audit plan is aligned with the organization's goals.

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

• Question 908:

  The internal audit manager has been delegated the task of preparing the annual internal audit plan for the forthcoming fiscal year. All engagements should be appropriately categorized and presented to the chief audit executive for review. Which of the following would most likely be classified as a consulting engagement?

  A. Evaluating procurement department process effectiveness.
  B. Helping in the design of the risk management program.
  C. Assessing financial reporting control adequacy.
  D. Reviewing environmental, social, and governance reporting compliance.
  D. Reviewing environmental, social, and governance reporting compliance.

• Question 909:

  Which of the following activities is an internal auditor most likely to perform when establishing the objectives of an assurance engagement?

  A. Discuss the internal audit risk assessment, including applicable risks and objectives, with internal audit management.
  B. Perform a walk-through of the process under review to determine whether controls were operating effectively.
  C. Identify which controls will be tested and the sampling method to be used based on control risk.
  D. Meet with operational management to learn about any areas of concern and to agree on the engagement objectives.
  A. Discuss the internal audit risk assessment, including applicable risks and objectives, with internal audit management.

• Question 910:

  According to IIA guidance, which of the following activities are typically primary objectives of engagement supervision?

  A. Enable training and development of staff, identify engagement objectives, and assign responsibilities to individual auditors.
  B. Identify engagement objectives, assign responsibilities to individual auditors, and approve the engagement program.
  C. Assign responsibilities to individual auditors, approve the engagement program, and enable training and development of staff.
  D. Approve the engagement program, enable training and development of staff, and identify engagement objectives.
  B. Identify engagement objectives, assign responsibilities to individual auditors, and approve the engagement program.