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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 951:

  An internal audit activity is performing an assurance engagement of a shipping organization's billing process. During the early stages of the engagement, the internal audit activity identifies potential high-risk defficiencies in billing transactions with certain vendors. The internal audit activity believes these defficiencies should be communicated to senior management. Which of the following would the internal audit activity include in its preliminary communication to senior management?

  A. An action plan for senior management to immediately implement to address defficiencies.
  B. Convers of fraud associated with the questionable billings.
  C. A list of the identified billing transactions with defficiencies and the associated vendors.
  D. Notification of the completion of fieldwork and the preparation of the final report.
  B. Convers of fraud associated with the questionable billings.

• Question 952:

  Which of the following statements best applies to audit observations being considered for the final audit report?

  A. Reported audit observations require an audit rating
  B. The board will follow up on the observations separately
  C. Reported audit observations are exempt from due dates
  D. Reported audit observations should continue to appear on interim reports
  D. Reported audit observations should continue to appear on interim reports

• Question 953:

  The internal audit activity is discussing a review of the organization's sustainability goals. According to IIA guidance, which of the following statements regarding this review is true?

  A. It can be performed as a separate engagement or as part of various engagements.
  B. It should only be performed through a separate organizationwide engagement, to ensure completeness of the review.
  C. It must be a part of every assurance engagement, to ensure continuous monitoring.
  D. It should be performed by external experts.
  A. It can be performed as a separate engagement or as part of various engagements.

• Question 954:

  During an audit, an employee, who does not want to be identified, offers to provide information that would be damaging to the organization and may concern illegal activities. Which of the following actions by the auditor would not be consistent with the IIA Code of Ethics and Standards?

  A. Promising to maintain the employee's anonymity and listening to the information.
  B. Suggesting that the employee consider talking to legal counsel.
  C. Informing the employee that an attempt will be made to keep the source of the informationconfidential while looking into the matter further.
  D. Informing the employee of other methods of communicating this type of information.
  A. Promising to maintain the employee's anonymity and listening to the information.

• Question 955:

  A major IT project is scheduled to be implemented over a three-month period during the year. With this in mind, the chief audit executive (CAE) scheduled a significant number of resources in the audit plan to ensure that the internal audit activity can provide the necessary consultation for the project. However, due to technical challenges on the part of a major supplier, the project has to be postponed until the following year. What should the CAE do in this case?

  A. Communicate to the IT project manager that the audit resources are still available to his department for other projects.
  B. Reassign the available audit resources to other areas of risk and advise the respective managers in those areas.
  C. Amend the plan accordingly and advise the board and senior management for their review and approval.
  D. Keep the available resources unassigned so that they are able to take on any ad hoc assignment that may arise.
  C. Amend the plan accordingly and advise the board and senior management for their review and approval.

• Question 956:

  Which statistical sampling approach would an internal auditor typically utilize if she wishes to test for fraud and the expected deviation rate is very low?

  A. Stratified sampling.
  B. Attribute sampling.
  C. Discovery sampling.
  D. Haphazard sampling.
  B. Attribute sampling.

• Question 957:

  According to IIA guidance, which of the following are the most important objectives for helping to ensure the appropriate completion of an engagement?

  1.Coordinate audit team members to ensure the efficient execution of all engagement procedures.

  2.Confirm engagement workpapers properly support the observations, recommendations, and conclusions.

  3.Provide structured learning opportunities for engagement auditors when possible.

  4.Ensure engagement objectives are reviewed for satisfactory achievement and are documented properly.

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

• Question 958:

  Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

  A. Checks are not restrictively endorsed when received.
  B. Only one signature is required on the organization's checks.
  C. One employee handles both accounts receivable and purchase orders.
  D. One employee handles both cash deposits and accounts payable.
  A. Checks are not restrictively endorsed when received.

• Question 959:

  An internal auditor obtained the following:

  1.Completed declarations of economic interests of employees.

  2.A description of investigation protocols.

  3.A description of the performance system.

  4.The organizational code of conduct.

  5.A record of issues reported via hotline channels.

  What is the auditor most likely looking to achieve during this engagement?

  A. The auditor is evaluating the effectiveness of an ethics-related program.
  B. The auditor is investigating an instance of potential fraud.
  C. The auditor is assessing the likelihood and impact of fraud risks in the organization.
  D. The auditor is appraising the efficiency of the management of human resources.
  A. The auditor is evaluating the effectiveness of an ethics-related program.

• Question 960:

  As part of internal audit's assistance with an annual external audit, the internal auditors are required to do a preliminary analytical review of all bank account balances. This involves verifying the current year end balances. as well as

  comparing the current year end balances with previous year end balances to highlight significant changes.

  Which of the following is the most reliable source for Verification of the current year end bank balances?

  A. Bank Confirmations.
  B. Internal bank statements.
  C. Bank reconciliations as of the end of the year.
  D. Bank account general ledger balances as of the end of the year.
  A. Bank Confirmations.