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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 961:

  During audit engagement planning, an internal auditor is determining the best approach for leveraging computer-assisted audit techniques (CAATs). Which of the following approaches maximizes the use of CAATs and why?

  A. Tracing, because it would enable the auditor to verify quickly that the record counts were properly included in the compilation.
  B. Inspection, because it would enable the auditor to verify how management enters the data into the application for processing.
  C. Testing data, because it would enable the auditor to ensure that the application processes the transaction as described by management.
  D. Reperformance, because it enables the auditor to verify that the application performed the calculation correctly.
  D. Reperformance, because it enables the auditor to verify that the application performed the calculation correctly.

• Question 962:

  The chief audit executive of an international organization is planning an audit of the treasury function, located at the organization's headquarters. The current internal audit team at headquarters lacks expertise in the area of financial markets, which is needed for the engagement. Which of the following would be the most appropriate solution, considering the time constraint?

  A. Outsource the engagement to the organization's external auditor, who has expertise in the area of financial markets.
  B. Hire additional internal auditors who have expertise in the area of financial markets.
  C. Invite a guest auditor from one of the organization's a liates who has expertise in the area of financial markets.
  D. Limit the scope of the engagement to the knowledge and skills possessed by the internal audit team.
  C. Invite a guest auditor from one of the organization's a liates who has expertise in the area of financial markets.

• Question 963:

  Which of the following items, included in the preliminary audit communication, would be most useful for management to formulate action plans in response to audit recommendations?

  A. A condition.
  B. An audit objective.
  C. An audit scope.
  D. An observation rating.
  B. An audit objective.

• Question 964:

  The chief audit executive of a large publicly held bank is using a risk based approach to update the annual audit plan. Which of the following sources of information will have the least impact on the plan?

  A. The 12 month forecast of commercial property values.
  B. Recent changes to the bank's strategic plan.
  C. Regulatory changes impacting capitalization for all publicly traded banks.
  D. Continuous changes in the prime lending rate set by the country's central bank.
  D. Continuous changes in the prime lending rate set by the country's central bank.

• Question 965:

  An internal auditor suspects that employee turnover is unusually high at the organization's primary manufacturing plant. To investigate this potential issue, which of the following analytical approaches is the auditor likely to use?

  A. Ratio analysis.
  B. Vertical analysis.
  C. Benchmarking.
  D. Cost-benefit analysis.
  B. Vertical analysis.

• Question 966:

  According to IIA guidance, which of the following is the first step the internal audit activity undertakes in determining the effectiveness of an organization's risk management process?

  A. Assess the appropriateness of the organization's risk responses.
  B. Assess the alignment of the organization's vision and objectives.
  C. Identify the organization's significant risks.
  D. Understand the organization's risk appetite.
  D. Understand the organization's risk appetite.

• Question 967:

  Which of the following potential performance measures should an auditor recommend excluding from a performance scorecard?

  A. Number of employees.
  B. Market share.
  C. Number of customer complaints.
  D. Training dollars per employee.

• Question 968:

  Which of the following is an appropriate activity when supervising engagements?

  A. During engagement planning, the audit work program should be discussed between auditors and the engagement supervisor with the supervisor approving the work program.
  B. During fieldwork, scope changes made to the work program are at the auditor's discretion and should be supported adequately in the workpapers.
  C. Engagement supervision is most critical to the fieldwork and reporting phases of the audit, as this is where the majority of the work takes place.
  D. A degree of high supervision to no supervision may be provided to an auditor depending on his level of competence and the complexity of the engagement.
  A. During engagement planning, the audit work program should be discussed between auditors and the engagement supervisor with the supervisor approving the work program.

• Question 969:

  When gathering information as a part of a preliminary survey, what is a mandatory step internal auditors must take?

  A. Review prior assessments of the area under review.
  B. Map the process flow and controls in the area under review.
  C. Interview relevant stakeholders.
  D. Document the information gathered.
  D. Document the information gathered.

• Question 970:

  Which of the following is an example of a compliance assurance engagement?

  A. Providing in-house training to senior management regarding applicable laws and regulations.
  B. Providing an assessment of the design adequacy of controls related to consumer privacy andconfidentiality.
  C. Providing an assessment of customer satisfaction with customer service provided by the organization.
  D. Providing testing on the operating effectiveness of controls over the reliability of financial reporting.
  B. Providing an assessment of the design adequacy of controls related to consumer privacy andconfidentiality.