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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 921:

  An engagement team is being assembled to audit of one of the organization's vendors. Which of the following statements best applies to this scenario?

  A. The engagement team should include internal auditors who have expertise in investigating vendor fraud.
  B. The engagement team should be comprised of certified accountants who are proficient in financial statement analysis and local accounting principles.
  C. To preserve independence and objectivity, an auditor who worked for the vendor two years prior may not participate on the engagement team.
  D. The engagement team may include an auditor who lacks knowledge of the industry in which the vendor operates.
  B. The engagement team should be comprised of certified accountants who are proficient in financial statement analysis and local accounting principles.

• Question 922:

  For which of the following fraud engagement activities would it be most appropriate to involve a forensic auditor?

  A. Independently evaluating conflicts of interests.
  B. Assessing contracts for relevant terms and conditions.
  C. Performing statistical analysis for data anomalies.
  D. Preparing evidentiary documentation.
  D. Preparing evidentiary documentation.

• Question 923:

  An internal auditor is working on an audit of the organization's procurement process. The auditor has been assigned to use data analytics to identify vendors with the same addresses as active employees. What is the objective of this assignment?

  A. To identify duplicate vendors.
  B. To test the three-way match control.
  C. To ensure the vendor file is complete.
  D. To identify potential conflicts of interest.
  D. To identify potential conflicts of interest.

• Question 924:

  According to IIA guidance, which of the following is most important for the internal audit activity to evaluate regarding management's remediation plans to address audit findings?

  A. Whether the adequacy of remediation plans is sufficient to address the risk.
  B. Whether the timeliness of remediation plans is reasonable considering business unit priorities.
  C. Whether the costs associated with remediation plans outweigh the risk impact.
  D. Whether the parties responsible for remediation have adequate competencies to execute the actions.
  C. Whether the costs associated with remediation plans outweigh the risk impact.

• Question 925:

  Due to the expanded role of internal audit in the organization, the chief audit executive (CAE) of a construction company decides to employ the services of an outsourced audit service provider to augment the internal audit staff. What does the CAE need to consider in determining whether the outsourced audit service provider possesses the necessary knowledge, skills and other competencies to perform an audit engagement?

  A. Specific matters expected to be covered in the engagement communications.
  B. The financial interest that the external service provider may have in the organization.
  C. The extent of other ongoing services the external service provider may be performing for the organization.
  D. The reputation of the external service provider.
  D. The reputation of the external service provider.

• Question 926:

  Which of the following is true of engagement recommendations?

  I. Specific suggestions for implementation must be included.

  II. The internal auditor's observations and conclusions may serve as the basis.

  III. Actions to correct existing conditions or improve operations may be included.

  IV.

  Approaches to correcting or enhancing performance may be suggested.

  A. I only
  B. III only
  C. I, III, and IV only
  D. II, III, and IV only
  D. II, III, and IV only

• Question 927:

  Which of the following conditions is the strongest indicator of possible fraud?

  A. An assistant treasurer who refuses to take vacations.
  B. Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.
  C. A condition of excess manufacturing waste material.
  D. A manager who is often over budget at the end of a reporting period.
  A. An assistant treasurer who refuses to take vacations.

• Question 928:

  A chief audit executive (CAE) determined that operational management did not address an open internal control issue, which creates a risk of material misstatement of the organization's financial statements. Which of the following is the best course of action for the CAE to take?

  A. Immediately report the issue to the board.
  B. Take the necessary corrective action to address the issue.
  C. Escalate the issue to senior management.
  D. Inform the external auditors about the issue.
  A. Immediately report the issue to the board.

• Question 929:

  Which of the following represents the best method for confirming that vendor invoices were for authorized purchases?

  A. Vouching vendor invoices to payments made.
  B. Sorting invoices by purchase orders and comparing for successive duplicate invoices.
  C. Comparing a random sample of vendor invoices to purchase orders.
  D. Sorting payments by invoice to detect successive duplicate invoices.
  C. Comparing a random sample of vendor invoices to purchase orders.

• Question 930:

  To effectively communicate the acceptance of risk in an organization, a chief audit executive mustfirst consider which of the following?

  A. The organization's view on risk tolerance.
  B. The organization's principal risk events.
  C. The organization's risk response strategies.
  D. The organization's major control activities.
  B. The organization's principal risk events.