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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 971:

  Why should internal auditors develop a strong relationship with the external auditors?

  A. External auditors offer an additional layer of approval to internal auditors' reports.
  B. External auditors can help improve the effectiveness of internal control sampling techniques.
  C. External auditors can offer an independent and knowledgeable viewpoint.
  D. External auditors can share information gained from work with similar clients.
  C. External auditors can offer an independent and knowledgeable viewpoint.

• Question 972:

  Controls are implemented to:

  A. Eliminate risk and reduce the potential for loss.
  B. Mitigate risk and eliminate the potential for loss.
  C. Mitigate risk and reduce the potential for loss.
  D. Eliminate risk and eliminate potential for loss.
  C. Mitigate risk and reduce the potential for loss.

• Question 973:

  Which of the following components should be included in an audit finding?

  1.The scope of the audit.

  2.The standard(s) used by the auditor to make the evaluation.

  3.The engagement's objectives.

  4.The factual evidence that the internal auditor found in the course of the examination.

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

• Question 974:

  Which of the following is an advantage to using the questionnaire approach when conducting risk and control self assessments?

  A. Responses can easily be quantified and analyzed.
  B. Follow-up for clarification is efficient.
  C. It is educational for participants.
  D. It allows for in-depth probing of issues.
  A. Responses can easily be quantified and analyzed.

• Question 975:

  Which of the following is least likely to vary when conducting audit engagements in different regions of an international organization?

  A. Application of governmental regulations to business activities.
  B. Work schedules and holidays of the individual regions.
  C. Level of workpaper documentation needed to support audit observations.
  D. Availability of technology and technical support.
  C. Level of workpaper documentation needed to support audit observations.

• Question 976:

  An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?

  A. Identify variances between amounts capitalized each month and the capital budget.
  B. Analyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.
  C. Review all journal entries that transferred costs from capital to inventory accounts.
  D. Compare inventory receipts with debits to the inventory account and investigate discrepancies.
  C. Review all journal entries that transferred costs from capital to inventory accounts.

• Question 977:

  In which of the following situations would it be most appropriate for an internal audit activity to issue an interim report or memo?

  A. A scheduled audit observed that several agreed improvements from the previous audit were still being implemented.
  B. A planned inventory count at the production plant revealed a material variance.
  C. An employee shared concerns of suspected fraud but did not provide evidence.
  D. An auditor responsible for the fieldwork has carried out only half of the planned audit procedures and has no observations so far.
  B. A planned inventory count at the production plant revealed a material variance.

• Question 978:

  The most effective method of reporting engagement results to management and stimulating action is to:

  A. Deliver a lecture on the engagement results.
  B. Limit verbal commentary and present a series of slides that graphically depict the engagement results.
  C. Use slides to support a discussion of major points.
  D. Distribute copies of the report, ask the participants to read the report, and ask for questions.
  C. Use slides to support a discussion of major points.

• Question 979:

  Which of the following would not be characteristic of control self-assessment implemented by an audit department?

  A. An auditor usually facilitates the discussion during the workshop phase while another records comments for subsequent use.
  B. Auditors and business-unit employees work as a team.
  C. Auditors perform traditional audit tests to identify control weaknesses.
  D. Participants discuss the control weaknesses that hinder the achievement of objectives.
  C. Auditors perform traditional audit tests to identify control weaknesses.

• Question 980:

  According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?

  A. Have employees annually sign a code of conduct requiring that they report any known violations.
  B. Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.
  C. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.
  D. Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.
  C. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.