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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 931:

  Which of the following statements is true regarding the application of generalized audit software?

  A. Obtaining access to relevant and reliable data is usually easy; however, importing the data into generalized audit software is typically a challenge
  B. Although generalized audit software enables internal auditors to rely less on judgmental sampling, analysis of large quantities of data is still a challenge
  C. Using generalized audit software to perform audit tasks in different software and hardware environments requires considerable customization
  D. Generalized audit software enables internal auditors to perform tests on data independently of the organization's IT personnel
  C. Using generalized audit software to perform audit tasks in different software and hardware environments requires considerable customization

• Question 932:

  An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?

  A. Manage and coordinate risk management processes.
  B. Audit risk management processes.
  C. Become involved in risk oversight committees, monitoring activities, and status reporting.
  D. Accept management's responsibility for risk management without board approval.
  D. Accept management's responsibility for risk management without board approval.

• Question 933:

  According to IIA guidance, which of the following should be a primary objective for an internal auditor who is conducting an exit conference?

  A. Improve relations with the engagement clients.
  B. Present the final engagement communication.
  C. Identify concerns for future audit engagements.
  D. Ensure the accuracy of engagement conclusions.
  A. Improve relations with the engagement clients.

• Question 934:

  An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

  A. The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.
  B. The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.
  C. The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.
  D. Senior management is accountable to the board for monitoring the system of internal controls.
  A. The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.

• Question 935:

  Which of the following describes the appropriate level of communication with management of the area under review during an audit engagement?

  A. It should only occur during the kick-off and exit meetings, to protect the objectivity of the audit team.
  B. It should only occur when issues are identified, to verify their existence and impact.
  C. It should be ongoing throughout the engagement, to ensure accuracy and transparency.
  D. It should be held at predefined points in time, to ensure the engagement stays on schedule.
  C. It should be ongoing throughout the engagement, to ensure accuracy and transparency.

• Question 936:

  According to IIA guidance, which of the following should be considered when creating policies and procedures for the internal audit activity (IAA)?

  A. Number of auditors, complexity of audit activities, and structure of the IAA.
  B. Number of auditors, complexity of audit activities, and audit staff skills and competencies.
  C. Number of auditors, structure of the IAA, and audit staff skills and competencies.
  D. Complexity of audit activities, structure of the IAA, and audit staff skills and competencies.
  A. Number of auditors, complexity of audit activities, and structure of the IAA.

• Question 937:

  An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not

  document the potential problems for further investigation.

  The primary defficiency with the above process is that:

  A. The auditor failed to consider the importance of the information offered.
  B. A questionnaire was used in a situation where a structured interview should have been used.
  C. Using a questionnaire precludes the auditor from documenting other information.
  D. The engagement program was incomplete.
  A. The auditor failed to consider the importance of the information offered.

• Question 938:

  Which of the following is a test control risk that is performed by the internal auditor?

  A. Tracing invoices to ledgers.
  B. Checking correct calculation of amounts.
  C. Checking approval of expenses by appropriate persons.
  D. Inspecting inventory to Confirm existence.
  C. Checking approval of expenses by appropriate persons.

• Question 939:

  Flowcharts are useful during audit planning because they contain information that may help internal auditors with which of the following?

  A. Understanding management's risk tolerance.
  B. Understanding business processes.
  C. Determining the size of the audit team needed to perform the review.
  D. Understanding organizational objectives.
  B. Understanding business processes.

• Question 940:

  To compete in the global market, an organization is restructuring and consolidating many of its divisions. Prior to the consolidation, senior management requested assistance from the internal audit activity. Which of the following consulting services would be most appropriate in this situation?

  A. Assess controls for potential compliance issues that may affect the consolidation.
  B. Brief vendors on the potential risks that will occur without continued business.
  C. Advise division managers on how to streamline operations for better efficiency.
  D. Determine whether the organization's controls are effective in meeting business objectives.
  C. Advise division managers on how to streamline operations for better efficiency.