[Jan 13, 2022] Fully Updated Dumps PDF - Latest IIA-CIA-Part2 Exam Questions and Answers
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IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION 46
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. Carefully work out the details of implementation before presenting it to department management.
- B. Discuss it with operating supervisors who are directly affected by the change, and then with department management.
- C. Bring it to the audit manager, who should bring it immediately to senior management's attention.
- D. Wait until the exit conference to discuss it in order to ensure all affected parties are present.
Answer: B
Explanation:
Section: Volume B
Explanation
NEW QUESTION 47
Which of the following statements about internal audit's follow-up process is true?
- A. Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.
- B. The follow-up process must be complete and documented in the working papers in order to conclude the engagement.
- C. The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.
- D. The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION 48
During the development of a purchasing system, an auditor reviewed the payment authorization program.
Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?
- A. Issue an exception report.
- B. Pay the amount billed and adjust the inventory account for the difference.
- C. Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.
- D. Return the invoice to the vendor for correction.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION 49
While reviewing the draft report of an audit engagement, the chief audit executive (CAE) is not in agreement with management's acceptance of the potential risk exposure resulting from an observed key control weakness. Which of the following actions by the CAE would be appropriate for addressing this concern?
* Meet with the auditor-in-charge.
* Discuss with senior management.
* Monitor the result of the accepted risk.
* Report the matter to the board.
- A. 1, 3, and 4 only
- B. 1, 2, and 3 only
- C. 1, 2, and 4 only
- D. 2, 3, and 4 only
Answer: C
NEW QUESTION 50
While performing an audit of the human resources department, an internal auditor discovered unencrypted files containing the personal information of employees stored on a public shared drive. According to IIA guidance, which of the following actions by the auditor would be the most appropriate?
- A. Immediately review the audit logs to see if anyone has accessed this information and follow-up.
- B. Communicate the issue to the chief audit executive as well as IT and legal departments.
- C. Change permissions to the shared drive to only allow access to human resources personnel.
- D. Remove the files containing the social security numbers and personal information.
Answer: B
NEW QUESTION 51
A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?
- A. Present the plan change to senior management and request additional resources before going to the board of directors.
- B. Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.
- C. Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.
- D. Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.
Answer: B
Explanation:
Section: Volume C
Explanation
NEW QUESTION 52
The internal audit activity performs the following sequence of risk management activities: identification, analysis, and evaluation. According to IIA guidance, which of the following assurance approaches does this describe?
- A. Maturity model approach.
- B. Key principles approach.
- C. Enterprise-wide risk management approach.
- D. Process elements approach.
Answer: D
NEW QUESTION 53
In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?
I. Audit team's knowledge of the audited area.
II. Usefulness of the audit results.
III. Quality of management of the internal audit activity.
IV. Clarity of the scope and objectives of the audit engagement.
- A. I, III, and IV only
- B. II and IV only
- C. I, II, and IV only
- D. I and II only
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 54
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:
- A. Apply analytical procedures to areas that might be impacted by possible fraudulent activities.
- B. Interview employees to identify areas where the fraud could be occurring.
- C. Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.
- D. Plan detailed tests of the areas that have the highest dollar amount of transactions.
Answer: A
NEW QUESTION 55
An audit of an organization's fulfillment department discovered that problems in the order processing system led to a significant number of orders being fulfilled multiple times. During the exit conference, the head of the department informed the auditors that the processing system would be enhanced within six months to correct the problems. Which course of action should the chief audit executive follow?
- A. Adjust the scope of the next scheduled audit to determine that the problems have been resolved.
- B. Meet with the audit committee to determine the appropriate follow-up action.
- C. Assess the status of corrective action in a follow-up engagement in six months.
- D. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
Answer: D
NEW QUESTION 56
When approving the final engagement report, which of the following is most critical?
- A. Conclusions are reached for all objectives.
- B. Opinions are adequately supported.
- C. Report is distributed to appropriate parties.
- D. Report is clear and concise.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION 57
According to the International Professional Practices Framework, which of the following is not an objective of the exit conference?
- A. Review audit recommendations.
- B. Receive client feedback and clarification.
- C. Plan future engagements.
- D. Resolve disagreements.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 58
Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?
- A. To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.
- B. To ensure that the audit programs are followed by the auditor.
- C. To ensure that the work papers create background for subsequent reviews.
- D. To ensure adequate control over the custody of working papers is exercised by the auditor.
Answer: B
NEW QUESTION 59
An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?
1. Daily report that identifies unsuccessful system log-in attempts.
2. Weekly management communication with tips on identifying possible fraud.
3. E-mail alert sent to management for checks issued over $100,000.00.
4. New hire training to explain fraud and employee misconduct.
- A. 1 and 2 only
- B. 3 and 4 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: C
NEW QUESTION 60
Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?
- A. The audit engagement has already been communicated and approved through the annual audit plan.
- B. Previous management action plans addressing prior internal audit recommendations remain incomplete.
- C. The engagement includes audit assurance procedures such as sensitive or restricted asset verifications.
- D. Advance notice may result in management making corrections to reduce the number of potential deficiencies.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 61
Which of the following is not an outcome of control self-assessment?
- A. Internal auditors become involved in and knowledgeable about the self-assessment process.
- B. Nonaudit employees become experienced in assessing controls and associating control processes with managing risks.
- C. The entire objectives-risks-controls infrastructure of an organization is subject to greater monitoring and continuous improvement.
- D. Informal, soft controls are omitted, and greater focus is placed on hard controls.
Answer: D
NEW QUESTION 62
In which of the following cases is it appropriate for an audit report to not contain management's response either within the report or as an attachment?
- A. Internal controls were found to be properly designed and operating effectively although operations are deemed inefficient.
- B. Management's response to an audit report is generally not a requirement.
- C. There was insufficient time to obtain management's response during the draft reporting process.
- D. An internal audit report contains no observations.
Answer: D
NEW QUESTION 63
An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?
- A. Confirm accounts payable.
- B. Review the endorsements and banks of deposit on customers' canceled checks.
- C. Flowchart and analyze key controls in the cash receipts process.
- D. Confirm accounts receivable.
Answer: C
NEW QUESTION 64
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. Operational risks.
- B. Access risks.
- C. Change or configuration risks.
- D. Physical security risks.
Answer: D
NEW QUESTION 65
According to the International Professional Practices Framework, which of the following should be excluded from a final communication for a performance audit engagement?
- A. The internal auditor's unbiased opinion.
- B. Timely and relevant information.
- C. Legal opinions related to illegal acts.
- D. Recommendations and conclusions.
Answer: C
NEW QUESTION 66
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