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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 941:

  When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?

  A. The need and availability of automated support.
  B. The potential impact of key risks.
  C. The expected outcomes and deliverables.
  D. The operational and geographic boundaries.
  B. The potential impact of key risks.

• Question 942:

  During an audit of the accounts receivable (AR) process, an internal auditor noted that reconciliations are still not performed regularly by the AR staff, a recommendation that was made following a previous audit. Monitoring by the financial reporting function has failed to detect the shortcoming. Both the financial reporting function and AR report to the controller, who is responsible for implementing action plans. Which of the following supports the internal auditor's decision to combine both observations into one reported finding?

  A. The observation was made during the same audit, and the action plan has a common owner.
  B. The observation relates to the same control activity within a common process.
  C. The observation has a common control, and it was noted in a prior audit.
  D. The observation has a common process, and the action plan for the observation has a common owner.
  D. The observation has a common process, and the action plan for the observation has a common owner.

• Question 943:

  An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO. Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization's health and safety program?

  A. The CAE has no role to play, because the chief health and safety officer reports to a senior executive.
  B. The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.
  C. The CAE should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.
  D. The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety controls and processes.
  B. The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.

• Question 944:

  An internal auditor is planning an engagement at a financial institution. The engagement objective is to identify whether loans were granted in accordance with the organization's policies. Which of the following approaches would provide the auditor with the best information?

  A. Randomly select 30 cases of loans and verify whether they were repaid timely and in full.
  B. Randomly select 30 cases of loans and validate them against applicable underwriting guidelines.
  C. Randomly select 30 employees to complete a survey regarding whether policies and standards are followed.
  D. Randomly select several months, obtain ageing reports for these months, and compare them with the prior year.
  B. Randomly select 30 cases of loans and validate them against applicable underwriting guidelines.

• Question 945:

  Which of the following is most likely the subject of a periodic report from the chief audit executive to the board?

  A. A complete, accurate, and comprehensive account of engagement observations and recommendations.
  B. Oversight of the coordination between the internal audit activity and independent outside auditors.
  C. The internal audit activity's purpose, authority, responsibility, and performance relative to plan.
  D. Management's assertions regarding the system of internal controls.
  C. The internal audit activity's purpose, authority, responsibility, and performance relative to plan.

• Question 946:

  Which of the following actions is the most appropriate response for an internal auditor to take when a significant risk is identified during a consulting engagement?

  A. Report the risk identified from the consulting engagement to senior management.
  B. Do not include the risk in the assessment of risk management processes, as that is management's responsibility.
  C. Do not report the risk, as it is out of scope for the consulting engagement.
  D. Include the risk identified from the consulting engagement in the next annual risk assessment only if it is part of the consulting engagement objectives.
  A. Report the risk identified from the consulting engagement to senior management.

• Question 947:

  An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group. Which of the following is the most appropriate role that she should assume when facilitating the workshop?

  A. Express an opinion on the participants' inputs and conclusions as the assessment progresses.
  B. Provide appropriate techniques and guidelines on how the exercise should be undertaken.
  C. Evaluate and report on all issues that may be uncovered during the exercise.
  D. Screen and vet participants so that the most appropriate candidates are selected to participate in the exercise.
  B. Provide appropriate techniques and guidelines on how the exercise should be undertaken.

• Question 948:

  The chief audit executive was asked to Define the internal audit activity's key performance indicators (KPIs) for the upcoming year. The KPIs must measure efficiency and effectiveness. Which of the following is an example of a KPI that measures effectiveness?

  A. Internal audit reports are consistently submitted prior to the audit report deadline.
  B. Post engagement surveys completed by management indicate a "meets or exceeds expectations" rating.
  C. There is a significant reduction of travel costs per project over the next fiscal year.
  D. Internal auditors identify a minimum number of issues and provide recommendations to address them for each audit
  B. Post engagement surveys completed by management indicate a "meets or exceeds expectations" rating.

• Question 949:

  In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:

  A. Activities and cost drivers.
  B. Information processing procedures.
  C. Current product cost structures.
  D. Internal control alternatives.
  D. Internal control alternatives.

• Question 950:

  Which of the following best defines an audit opinion?

  A. A summary of the significant audit observations and recommendations.
  B. An auditor's evaluation of the effects of the observations and recommendations on the activities reviewed.
  C. A conclusion which must be included in the audit report.
  D. A recommendation for corrective action.
  B. An auditor's evaluation of the effects of the observations and recommendations on the activities reviewed.