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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 911:

  Which of the following best justifies an internal auditor's decision to issue a preliminary audit report?

  A. The internal audit team and audit client have a serious dispute over the scope and objective of the engagement.
  B. The internal audit team expects management to address certain issues immediately due to their severe impact.
  C. The internal audit team anticipates that the formal final audit report would be undesirable for management due to the significance of outlined risks.
  D. The internal audit team would like to issue a clean final audit report without any material observations or risks.
  B. The internal audit team expects management to address certain issues immediately due to their severe impact.

• Question 912:

  According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

  A. The organization's audit universe is extensive and diverse.
  B. There has been an increase in unanticipated requests for advisory work.
  C. Previous work provided by the external service provider has been of great quality and value.
  D. A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
  B. There has been an increase in unanticipated requests for advisory work.

• Question 913:

  According to IIA guidance, which of the following is the most appropriate treatment for distributing reports that containconfidential or sensitive information?

  A. Distribute only a summary report highlighting just the relevant engagement results.
  B. Disclose separately only the information relevant to the needs of each recipient.
  C. Restrict dissemination of the final engagement report only to the board or senior management.
  D. Provide only a verbal report, where appropriate, to protect the integrity of the restricted information.
  B. Disclose separately only the information relevant to the needs of each recipient.

• Question 914:

  An internal auditor wants to assess the completeness of sales invoices issued by the organization over a period of time. Providing that all the necessary data and analytics software is accessible, which of the following types of analysis would be appropriate to satisfy the auditor's objective?

  A. Payment terms analysis.
  B. Duplicates analysis.
  C. Aging analysis.
  D. Gap analysis.
  C. Aging analysis.

• Question 915:

  Persuasive evidence indicates that a member of senior management has been involved in insider trading that would be considered fraudulent. However, the evidence was encountered during an operational audit and is not considered relevant to the audit. Which of the following is the most appropriate action for the chief audit executive to take?

  A. Report the evidence to external legal counsel for investigation. Report the legal counsel findings to management.
  B. Report the evidence to the chairperson of the audit committee and recommend an investigation.
  C. Conduct sufficient audit work to conclude whether fraudulent activity has taken place, then report the findings to the chairperson of the audit committee and to government officials if appropriate action is not taken.
  D. Discontinue audit work associated with the insider trading since it is not relevant to the existing audit.
  B. Report the evidence to the chairperson of the audit committee and recommend an investigation.

• Question 916:

  Which of the following is the best option for the chief audit executive to consider for effective coordination of assurance coverage?

  A. Create an assurance map to illustrate each providers level of assurance and planned activities for each area of the organization
  B. Utilize risk inventory to identify the risks and controls in place and the relevant control owners.
  C. Rely on the risk and control and management testing information maintained for compliance with the regulatory framework.
  D. Prepare a risk likelihood and impact heat map to prioritize assurance coverage coordination.
  A. Create an assurance map to illustrate each providers level of assurance and planned activities for each area of the organization

• Question 917:

  Which of the following is an inherent risk of issuing an opinion on the overall effectiveness of internal control?

  A. The results of individual engagements do not support a satisfactory opinion on the effectiveness of internal control.
  B. The results of the individual engagements do not support a positive assurance opinion on the effectiveness of internal
  C. The audit risk and associated legal implications increase.
  D. The reliance on other assurance providers increases.
  C. The audit risk and associated legal implications increase.

• Question 918:

  To furnish useful and timely information and promote improvements in operations, internal auditors should provide:

  A. Senior management with reports that emphasize the operational details of defective conditions.
  B. Operating management with reports that emphasize general concerns and risks.
  C. Information in written form before it is discussed with the engagement client.
  D. Reports that meet the expectations of both operational and senior management.
  D. Reports that meet the expectations of both operational and senior management.

• Question 919:

  An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software development services. Which of the following actions is most appropriate for the internal auditor to take?

  A. Inform the audit supervisor.
  B. Investigate the potential conflict of interest.
  C. Inform the external auditors of the potential conflict of interest.
  D. Disregard the potential conflict, because it is outside the scope of the audit assignment.
  A. Inform the audit supervisor.

• Question 920:

  The external auditor has identified a number of production process control defficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?

  A. Refuse to accept the consulting engagement because it would be a violation of independence.
  B. Collaborate with the external auditor to ensure the most efficient use of resources.
  C. Accept the engagement but hire an external training specialist to provide the necessary expertise.
  D. Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.
  D. Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.