Free May-2024 IIA-CIA-Part2 Certification Sample Questions certification Exam
Certification Topics of IIA-CIA-Part2 Exam PDF Recently Updated Questions
IIA-CIA-Part2 exam covers a wide range of topics related to the practice of internal auditing, including risk management, governance, compliance, internal control, and audit planning and execution. IIA-CIA-Part2 exam consists of 100 multiple-choice questions and candidates have four hours to complete it. The passing score for the exam is 600 out of 800 points.
NEW QUESTION # 56
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 cash deposits and accounts payable.
- D. One employee handles both accounts receivable and purchase orders.
Answer: A
NEW QUESTION # 57
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Risk assessments can vary in format, but generally includE.
A description of identified risks.
Tests of audit controls.
A system of rating risks.
Sample size identification.
- A. 2, 3, and 4 only.
- B. 1, 3, and 4 only.
- C. 1 and 3 only.
- D. 1 and 2 only.
Answer: C
NEW QUESTION # 58
Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?
- A. The presence of an independent critical mass
- B. The organization's employee recruiting and retention policies
- C. The established philosophy and operating style of senior management
- D. The articulated internal control objectives of the organization
Answer: D
NEW QUESTION # 59
Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?
- A. To help develop process maps.
- B. To test the adequacy of controls.
- C. To identify residual risks.
- D. To determine segregation of duties.
Answer: B
NEW QUESTION # 60
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Sampling risk.
- B. Inherent risk.
- C. Control risk.
- D. Detection risk.
Answer: B
NEW QUESTION # 61
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?
- A. Informational questions.
- B. Closing questions.
- C. Assessment questions.
- D. Admission-seeking questions.
Answer: A
NEW QUESTION # 62
All of the following tools are employed to control large-scale projects except:
- A. Statistical process control.
- B. Critical path method.
- C. Gantt charts.
- D. Program evaluation and review technique (PERT).
Answer: A
NEW QUESTION # 63
According to IIA guidance, which of the following are acceptable strategies for an internal audit activity (IAA) to establish or build relationships?
- A. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and ensure that all communications with the board are formal audit reports or preset agendas.
- B. Assist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization's executives.
- C. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and encourage all IAA members to develop relationships with the organization's executives.
- D. Assist executives with their administrative and governance responsibilities, and ensure that all communications with the board are formal audit reports or preset agendas.
Answer: B
NEW QUESTION # 64
Which of the following is not likely to be included as an audit step when assessing vendor performance policies?
- A. Determine whether only authorized items were received from vendors.
- B. Determine whether the balances owed to vendors are correct.
- C. Determine whether agreed-upon lot sizes were sent by vendors.
- D. Determine whether the quality of the goods purchased from the vendors has been satisfactory.
Answer: B
NEW QUESTION # 65
An internal auditor has a recommendation to change operations which could potentially increase profits by $50,000. The best way to sell this recommendation to management is to:
- A. Bring it to the audit manager, who should bring it immediately to senior management's attention.
- B. Discuss it with operating supervisors who are directly affected by the change, and then with department management.
- C. Carefully work out the details of implementation before presenting it to department management.
- D. Wait until the exit conference to discuss it in order to ensure all affected parties are present.
Answer: B
NEW QUESTION # 66
Which of the following statements concerning workpapers is the most accurate?
- A. The organization and the format of workpapers is the same for all engagements
- B. Copies of operational managements records should not be included, but referenced so that they can be located
- C. Workpapers should be complete so that every conceivable question that can be raised should be answered
- D. The extent of what is included in workpapers is a matter of professional judgment
Answer: B
NEW QUESTION # 67
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
- A. Implement follow-up procedures to evaluate residual risk.
- B. Determine the costs of implementing the recommendations.
- C. Evaluate the extent of improvements.
- D. Report follow-up activities to senior management.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 68
Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?
- A. The percentage of total customers served per day.
- B. The percentage of customer issues resolved within 24 hours.
- C. The number of customer inquiries recorded per day.
- D. The number of customer complaints recorded per day.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 69
An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent."
Which of the following can be validly concluded from the auditor's statement?
I.Division A's production level declined by 15 percent.
II.
Division A could have sold more products than it produced.
III.
Division A usually sells all of the products that it produces.
- A. II only.
- B. I only.
- C. I and II only.
- D. III only.
Answer: A
NEW QUESTION # 70
Which of the following would be the most important reason for the chief audit executive (CAE) to use inputs from management strategy to update the audit universe?
- A. The CAE wants to cover management planned activities for the upcoming year in the audit plan.
- B. The audit charter requires the CAE to update the audit universe before embarking on the selection of potential audit engagements.
- C. The CAE wants to determine internal audit resourcing requirements to cover the organization's major processes and activities over time.
- D. The CAE wants to consider the organization's strategic plan including attitude toward risk and the degree of difficulty to achieving planned objectives.
Answer: D
NEW QUESTION # 71
The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:
- A. Prices paid for selected materials with prices listed on related purchase orders.
- B. Vendors' current prices with prices listed on related purchase orders.
- C. Approved vendor lists with bids obtained for selected purchases.
- D. Bids obtained for selected purchases with related purchase orders.
Answer: D
NEW QUESTION # 72
Which of the following would be the most important reason for the chief audit executive (CAE) to use inputs from management strategy to update the audit universe?
- A. The CAE wants to cover management planned activities for the upcoming year in the audit plan.
- B. The audit charter requires the CAE to update the audit universe before embarking on the selection of potential audit engagements.
- C. The CAE wants to determine internal audit resourcing requirements to cover the organization's major processes and activities over time.
- D. The CAE wants to consider the organization's strategic plan including attitude toward risk and the degree of difficulty to achieving planned objectives.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 73
When determining the nature, timing, and extent of follow up, the chief audit executive considers all of the following factors except:
- A. Authority and responsibility of the person required to take corrective action.
- B. Significance of the reported observation or recommendation, degree of effort, and cost needed to correct the reported condition.
- C. Impact that may result should the corrective action fail.
- D. Complexity of the corrective action and time period involved.
Answer: A
NEW QUESTION # 74
Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
I. A supervisor's initials on each workpaper.
II. An engagement workpaper review checklist.
III. A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
IV. Performance appraisals that assess the quality of workpapers prepared by auditors.
- A. I, II, III, and IV.
- B. II and IV only
- C. I, III, and IV only
- D. I, II, and III only
Answer: D
NEW QUESTION # 75
Which of the following methods would an auditor most likely use to document a complex sales order process?
- A. Utilize a systems narrative, which can be updated during subsequent audits.
- B. Perform a process review, assigning time and cost to each step of the process to develop a hierarchy flowchart.
- C. Develop a horizontal flowchart, with supporting documentation for key control points.
- D. Create a critical path method chart, noting the processes involved for each step.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 76
According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?
- A. The number, proficiency, experience, and availability of audit staff as well as the ability to coordinate with external auditors.
- B. The number, experience, and availability of audit staff as well as the nature, complexity, and time constraints of the engagement.
- C. The appropriateness and sufficiency of resources as well as the nature, complexity, and time constraints of the engagement.
- D. The appropriateness and sufficiency of resources and the ability to coordinate with external auditors.
Answer: C
NEW QUESTION # 77
An internal auditor compares real-time gasoline production data to corresponding final gasoline production reports and finds minor but consistent daily discrepancies. If the auditor is concerned about theft, which of the following next steps is most consistent with IIA guidance?
- A. Review the processes used to collect the production data and to compile the final production reports.
- B. Confront the production manager and ask her to explain the differences between real-time and reported data.
- C. Contact security personnel as evidence suggests gasoline is being stolen from production premises.
- D. Reconcile online data and the final production reports to gasoline sales reports.
Answer: A
NEW QUESTION # 78
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 should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.
- B. The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety program and the reliability of its reports.
- C. The CAE has no role to play, because the chief health and safety officer reports to a senior executive.
- D. 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.
Answer: D
NEW QUESTION # 79
When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?
- A. Recent changes in management objectives.
- B. Risk factors utilized in the organization's risk models.
- C. The organization's budget.
- D. Operations involving cash transactions.
Answer: A
NEW QUESTION # 80
The most effective method of reporting engagement results to management and stimulating action is to:
- A. Limit verbal commentary and present a series of slides that graphically depict the engagement results.
- B. Distribute copies of the report, ask the participants to read the report, and ask for questions.
- C. Deliver a lecture on the engagement results.
- D. Use slides to support a discussion of major points.
Answer: D
NEW QUESTION # 81
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