Free IIA IIA-CIA-Part2 Practice Test & Real Exam Questions, Page 1

Question #1

Which of the following should internal auditors document in the workpapers to indicate a potential engagement finding where further evaluation is required?

A. The difference between cause and criteria.

B. The difference between condition and criteria.

C. The difference between condition and cause.

D. The difference between cause and effect.

Discussion 0

Correct Answer: B Vote an answer

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Question #2

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

A. The availability of guest auditors for the engagement.

B. The number of internal auditors used for the previous review of the same area.

C. The available resources with the specific skill set required.

D. The overall adequacy of the internal audit activity ' s resources.

Discussion 0

Correct Answer: C Vote an answer

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Question #3

Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

A. When internal auditors need to cover many control procedures using ICQs is generally less efficient than conducting observations and inspections

B. It is generally difficult for internal auditors lo compile appropriate ICQs for business activities that are governed by standardized operating procedures

C. It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management

D. ICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.

Discussion 0

Correct Answer: A Vote an answer

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Question #4

Which of the following scenarios is an example of appropriate engagement supervision?

A. An engagement supervisor uses internal audit software.

B. The engagement supervisor and a team member meet regularly to discuss engagement progress.

C. An engagement supervisor provides equal supervision to junior auditors and senior auditors.

D. The chief audit executive personally supervises each engagement.

Discussion 0

Correct Answer: B Vote an answer

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Question #5

When addressing the excessive overtime being paid lo employees in an organization ' s customer service call center, which of the following would be most relevant for the internal auditor to use?
1 Confirmation.
2. Trend analysis.
3 External benchmarking
4. Internal benchmarking

A. 1.3. and 4.

B. 2. 3. and 4.

C. 1.2 and 3

D. 1.2. and 4.

Discussion 0

Correct Answer: B Vote an answer

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Question #6

Operational management In the IT department has developed key performance indicator reports, which are reviewed in detail during monthly staff meetings. This activity is designed to prevent which of the following conditions?

A. Accountability reward failure

B. Knowledge/skills gap.

C. Communication failure

D. Monitoring gap.

Discussion 0

Correct Answer: D Vote an answer

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Question #7

An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?

A. Switch the existing assurance engagement into a fraud investigation engagement

B. Perform data analytics on the supplier ' s information, invoiced amounts, and payments performed

C. Extend the audit scope and perform additional testing of controls on other related areas

D. Review the poor year ' s transaction volume and amounts paid compared to the poor year ' s budget

Discussion 0

Correct Answer: B Vote an answer

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Question #8

Which of the following is critical to the success of an effective interview?

A. Establish credibility, trust, and rapport.

B. Present audit evidence and information to support the internal auditor's line of questioning.

C. Observe the process and discuss it with the interviewee.

D. Develop flowcharts and review them with the interviewee.

Discussion 0

Correct Answer: A Vote an answer

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Question #9

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days What conditions would an auditor look for as an Indicator of employee theft of food from a specific store?

A. On a rainy day. total sales are greater than expected when compared to the cost of ingredients used

B. Both total sales and cost of ingredients used are greater than expected.

C. On a sunny day. total sales are less than expected when compared to the cost of ingredients used.

D. Both total sales and cost of ingredients used are less than expected.

Discussion 0

Correct Answer: A Vote an answer

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Question #10

According to IIA guidance, which of the following typically serves as the basis for an engagement work program?

A. Techniques and resources.

B. Past audit findings.

C. Scope and audit objectives.

D. Stakeholders ' expectations.

Discussion 0

Correct Answer: C Vote an answer

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Question #11

The chief risk officer (CRO) of a large manufacturing organization decided to facilitate a workshop for process managers and staff to identify opportunities for improving productivity and reducing defects. Which of the following is the most likely reason the CRO chose the workshop approach?

A. Responses can be confidential, thus encouraging participants to be candid expressing their concerns.

B. It minimizes the amount of time spent and cost incurred to gather the necessary information.

C. Workshops do not require extensive facilitation skills and are therefore ideal for nonauditors.

D. Workshop participants have an opportunity to learn while contributing ideas toward the objectives.

Discussion 0

Correct Answer: D Vote an answer

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Question #12

Which of the following is essential for ensuring that the internal audit activity's findings and recommendations receive adequate consideration?

A. Reporting quarterly to management that the audit plan is focused on higher exposures of risk.

B. Discussing audit findings with independent auditors.

C. Reporting results of audits with recommendations to management.

D. Providing formal follow-up procedures to ensure that management complies with an action plan or accepted risk of not taking action.

Discussion 0

Correct Answer: D Vote an answer

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Question #13

According to IIA guidance, which of the following strategies would add the least value to the achievement of the internal audit activity ' s (IAA ' s) objectives?

A. Align organizational activities to internal audit activities and measure according to the approved IAA performance measures.

B. Establish a periodic review of monitoring and reporting processes to help ensure relevant IAA reporting.

C. Establish a format and frequency for IAA reporting that is appropriate and aligns with the organization ' s governance structure.

D. Use the results of IAA engagement and advisory reporting to guide current and future internal audit activities.

Discussion 0

Correct Answer: A Vote an answer

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Question #14

An internal auditor completed a consulting engagement covering a recent advertising campaign. The audit client asked the auditor to forward a copy of the report to one of the three advertising agencies used by the organization. According to IIA guidance, which of the following statements is true regarding this request?

A. The internal auditor may send the report and is required to include instructions for the advertising agency to limit further distribution and the use of results.

B. The internal auditor may not communicate the results to this external party regardless of the engagement client ' s instruction.

C. The internal auditor may only communicate the results verbally to the advertising agency and should not provide a hard copy.

D. The internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.

Discussion 0

Correct Answer: D Vote an answer

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Question #15

The board has asked the internal audit activity (IAA) to be involved in the organization ' s enterprise risk management process. Which of the following activities is appropriate for IAA to perform without safeguards?

A. Facilitate identification and evaluation of risks.

B. Evaluate risk management processes.

C. Develop risk management strategies for board approval.

D. Coach management in responding to risks.

Discussion 0

Correct Answer: B Vote an answer

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