Aug-2022 Realistic IIA-CIA-Part2 Accurate & Verified Answers As Experienced in the Actual Test!
Latest IIA IIA-CIA-Part2 Practice Test Questions, Practice of Internal Auditing Exam Dumps
IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION 289
Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?
- A. Verify that amounts are correct.
- B. Verify that recipients are valid employees.
- C. Verify that payments are on time.
- D. Verify that benefits deductions are accurate.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION 290
Which of the following is an example of the verification of internal documentary evidence?
- A. Reconciling a vendor's month-end statement.
- B. Vouching a copy of a sales invoice to receivables.
- C. Reviewing a carrier's bill of lading.
- D. Recalculating a customer's purchase order.
Answer: B
NEW QUESTION 291
Company A has a formal comprehensive corporate code of ethics while company B does not.
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
I. Company A exhibits a higher standard of ethical behavior than does company B.
II. Company A has established objective criteria by which an employee's actions can be evaluated.
III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
- A. II only
- B. I and II only
- C. III only
- D. II and III only
Answer: A
Explanation:
Section: Volume A
NEW QUESTION 292
Which of the following documents should the chief audit executive review and approve?
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Workpaper retention policy.
Audit committee meeting minutes.
Internal audit handbook.
Quarterly financial statements.
- A. 1 and 3 only.
- B. 2 and 4 only.
- C. 1 and 2 only.
- D. 1, 3, and 4 only.
Answer: A
NEW QUESTION 293
Monetary-unit sampling is most useful when the internal auditor:
- A. Expects to find several material errors in the sample.
- B. Cannot cumulatively arrange the population items.
- C. Is concerned with overstatements.
- D. Is testing the accounts payable balance.
Answer: C
NEW QUESTION 294
An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I. Validate the completeness of the accounts payable files.
II. Examine the sample of vouchers in greater detail.
III. Increase the number of vouchers in the sample.
IV. Broaden the scope of the examination to include credits received by accounts payable.
- A. I, III, and IV only
- B. I, II, and IV only
- C. I and II only
- D. II and III only
Answer: D
NEW QUESTION 295
In preparing to facilitate a control self-assessment session, an auditor would be least likely to ensure that:
- A. Key stakeholders are represented in the group.
- B. Management is consulted on the issues and priorities.
- C. Background research is completed to familiarize the auditor with relevant issues.
- D. An independent content expert is available to help settle disagreements.
Answer: D
NEW QUESTION 296
An auditor evaluating excessive product rejection rates should investigate:
I.Communication between sales and production departments on sales returns.
II.
Volume of product sales year-to-date in comparison to prior year-to-date.
III.
Changes in credit ratings of customers versus sales to those customers.
IV.
Detailed product scrap accounts and accumulations.
- A. I and IV only.
- B. II, III, and IV only.
- C. I, II, III, and IV.
- D. I and III only.
Answer: A
NEW QUESTION 297
During the audit of a large decentralized supply chain function, the chief audit executive (CAE) receives serious allegations of fraud concerning the vice president responsible for this function. The CAE engages a third party to provide forensic audit services and lead the investigation portion of the engagement. As part of this team, which of the following would be an appropriate role for the investigator?
1. Authenticate the original approval signatures on contracts.
2. Interview personnel to understand the supply chain processes.
3. Provide certified copies of relevant original documents for the audit file.
4. Identify variances in pixels on original electronic documents.
- A. 1 and 2 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: D
NEW QUESTION 298
Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?
- A. The percentage of customer issues resolved within 24 hours.
- B. The number of customer complaints recorded per day.
- C. The percentage of total customers served per day.
- D. The number of customer inquiries recorded per day.
Answer: A
NEW QUESTION 299
The following audit observation was included in the final audit report:
"Our review concluded that bank reconciliation statements for March and April did not show evidence of supervisory review. We recommend strict compliance with the controller's manual, which requires the department head to place their initials on the reconciliation statements to document their review." Which of the following attributes are missing from the above audit observation?
1. Criteria.
2. Condition.
3. Cause.
4. Effect.
- A. 2 and 3 only
- B. 3 and 4 only
- C. 1 and 4 only
- D. 1, 3, and 4 only
Answer: B
NEW QUESTION 300
The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?
- A. Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.
- B. Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
- C. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
- D. Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.
Answer: C
NEW QUESTION 301
Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?
I. Computerized tests to assess transaction reasonableness and validity.
II. Review of log books to ensure that transactions are logged upon receipt.
III. Edit checks to identify unusual transactions.
IV.
Verification of limitations on the authority of users to initiate specific EDI transactions.
- A. I and IV only
- B. I, II, and III only
- C. II and III only
- D. I, II, III, and IV.
Answer: B
NEW QUESTION 302
What is the primary purpose of issuing a preliminary communication to management of the area under review?
- A. To improve the internal audit key performance indicators
- B. To formally report medium- and high-risk observations in writing
- C. To help management develop more responsive and timely action plans
- D. To build good relations with management
Answer: C
NEW QUESTION 303
When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:
- A. Notify the internal auditor of the upcoming appraisal several days in advance.
- B. Use objective, impartial language.
- C. Use generalizations.
- D. Document the appraisal.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 304
According to IIA guidance,when performing a compliance audit of data security standards for a large e- commerce retailer, which of the following would represent the least likely area of risk exposure?
- A. Physical security risks.
- B. Change or configuration risks.
- C. Access risks.
- D. Operational risks.
Answer: A
NEW QUESTION 305
A chief audit executive is preparing interview questions for the upcoming recruitment of a senior internal auditor. According to IIA guidance, which of the following attributes shows a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior?
- A. Flexibility.
- B. Curiosity.
- C. Initiative.
- D. Integrity.
Answer: B
NEW QUESTION 306
Which of the following would be an appropriate role of the internal audit function?
- A. Determine the consequences for ethics violations.
- B. Establish the ethics policies for the organization.
- C. Be responsible for the management of a whistle blowing hotline.
- D. Evaluate the effectiveness of the organization's ethics-related activities.
Answer: D
NEW QUESTION 307
After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:
- A. External auditor.
- B. Chief executive officer.
- C. Audit committee chairperson.
- D. Legal counsel.
Answer: D
NEW QUESTION 308
A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?
- A. Compare credit reports with annual sales for a sample of customers.
- B. Compare the sales discounts offered to each customer.
- C. Compare the ratio of outstanding receivables to the authorized credit limit for each customer.
- D. Compare the aging of outstanding receivables due from each customer.
Answer: B
NEW QUESTION 309
The internal audit activity of an organization obtained approval to add a senior auditor to its staff. The chief audit executive, audit manager, and audit supervisor each will interview the candidates.
According to the Standards, which of the following best explains the involvement of management in the interview process?
- A. Allows audit management to explain the criteria that will be used to evaluate the senior auditor's performance.
- B. Assists audit management in planning by more effectively allocating the senior auditor to appropriate audits.
- C. Provides audit management with the opportunity to communicate expectations regarding ethical behavior standards.
- D. Enables audit management to outline its quality assurance and improvement program with the senior auditor.
Answer: B
NEW QUESTION 310
Which of the following statements is false regarding audit criteria?
- A. Audit criteria should represent reasonable standards against which to assess existing conditions.
- B. Audit criteria should equate to good or acceptable management practices.
- C. Audit criteria should be consistent across audit assignments.
- D. Audit criteria should provide flexibility but allow identification of nonadherence.
Answer: C
NEW QUESTION 311
According to IIA guidance, which of the following is true regarding audit supervision?
1. Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement.
2. Supervision should extend to training, time reporting, and expense control, as well as administrative matters.
3. Supervision should include review of engagement workpapers, with documented evidence of the review.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2, and 3
Answer: D
Explanation:
Section: Volume E
Explanation
NEW QUESTION 312
Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?
Disregard a certain risk because management and the board accepted the risk in the past.
Abdicate the responsibility for a particular risk because it is not part of the audit plan.
Obtain agreement from senior management that unresolved audit issues will be reported to the board.Request corrective action from management in writing.
- A. 2 and 3 only.
- B. 1 and 3 only.
- C. 1, 2, and 4 only.
- D. 3 and 4 only.
Answer: D
NEW QUESTION 313
Which sampling plan requires no additional sampling once the first error is found?
- A. Stratified sampling.
- B. Discovery sampling.
- C. Attributes sampling.
- D. Stop-or-go sampling.
Answer: B
Explanation:
Section: Volume A
Explanation
NEW QUESTION 314
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