[2023] IIA-CIA-Part2 Exam Dumps, Test Engine Practice Test Questions
Pass IIA-CIA-Part2 exam [Aug 23, 2023] Updated 360 Questions
NEW QUESTION # 78
Which of the following would be the most helpful to a chief audit executive when developing a talent management strategy?
- A. Extent of external audit coverage
- B. Gap analysis
- C. Maturity analysis
- D. Staff preferences
Answer: B
NEW QUESTION # 79
According to the Standards, which of the following is an attribute when applied to the observations and recommendations contained in the audit report?
- A. Scope statements.
- B. Supportive information.
- C. Effect.
- D. Client accomplishments.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 80
While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated. Which of the following actions should the auditor take?
1. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
2. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
3. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
4. Submit management's plan of action to the external auditors for additional review.
- A. 2 and 3
- B. 3 and 4
- C. 1 and 4
- D. 1 and 2
Answer: D
NEW QUESTION # 81
What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?
- A. Spontaneous agreement.
- B. Consensus building.
- C. Compromise.
- D. Majority voting.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 82
When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?
- A. The potential impact of key risks.
- B. The need and availability of automated support.
- C. The operational and geographic boundaries.
- D. The expected outcomes and deliverables.
Answer: A
NEW QUESTION # 83
After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?
- A. Flexibility.
- B. Cost.
- C. Familiarity.
- D. Independence.
Answer: C
NEW QUESTION # 84
Which of the following is correct with respect to roles within an enterprise-wide risk management process?
1. The board provides oversight to the risk management process.
2. Executive management owns the risk management framework.
3. Senior management is assigned ownership of risks.
4. Internal audit modifies the risk assessment determined by management.
- A. 3 and 4 only
- B. 1, 2, 3, and 4
- C. 1 and 2 only
- D. 1, 2, and 3 only
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 85
As part of an operational audit, an auditor compared records of current inventory with usage during the prior two-year period and determined that the spare parts inventory was excessive. What step should the auditor perform first?
- A. Determine whether purchases were properly recorded.
- B. Determine whether a clear policy exists for setting inventory limits.
- C. Determine who approved the purchase orders for the spare parts.
- D. Determine the effects of a stock-out on the organization's profitability.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 86
Cross-referencing individual payroll time cards to personnel department records and reports would allow an internal auditor to determine whether:
- A. Individuals are bona fide employees.
- B. Individuals were paid at the proper rates.
- C. Individuals were paid only for time worked.
- D. Personnel department records agree with payroll accounting records.
Answer: A
NEW QUESTION # 87
During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims.
The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:
- A. Disregard the interview entirely because the verbal and nonverbal communications were contradictory.
- B. Document the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.
- C. Document the manager's answers, noting the nature of the nonverbal communication.
- D. Conclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.
Answer: C
NEW QUESTION # 88
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?
- A. Sampling.
- B. Evaluation synthesis.
- C. Content analysis.
- D. Modeling.
Answer: D
NEW QUESTION # 89
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?
- A. Check tampering by an employee.
- B. Submission of fraudulent expense reports.
- C. Poor controls in the invoice approval processes.
- D. An ineffective customer service department.
Answer: A
NEW QUESTION # 90
The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?
- A. Report the situation to the board for immediate resolution.
- B. Close the issue by noting that follow-up will be completed as part of the next engagement.
- C. Discuss the matter with management to determine a resolution.
- D. Accept management's decision as the same risk has been accepted in the past.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 91
During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements. Which of the following represents the auditor's best recommendation in this situation?
- A. The organization's reimbursement policy should be amended to grant the president's executive secretary the authority to approve the president's travel expense reimbursements.
- B. The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.
- C. The president's noncompliance should be considered immaterial.
- D. The president's travel expense reimbursements should be reviewed and approved by the chief financial officer.
Answer: B
NEW QUESTION # 92
Which of the following factors would be the most critical in determining which engagements should be included in the annual internal audit plan?
- A. Risks that are identified by operations staff or senior management
- B. The extent to which the work to be performed is an assurance or consulting engagement
- C. The organization's annual risk management strategy
- D. Whether an audit is explicitly required by the internal audit charter
Answer: D
NEW QUESTION # 93
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. Return the invoice to the vendor for correction.
- 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. Issue an exception report.
Answer: D
NEW QUESTION # 94
An internal auditor for a large telecommunications organization identified potential risk factors related to a planned billing system conversion. Which of the following risk factors would present the least potential exposure to the organization?
- A. Invoice generation disruptions due to required maintenance.
- B. Critical customer support functions are not available for a short period.
- C. Inaccurate billing of telephone calls due to database error.
- D. End user criticism and lack of support for the new system.
Answer: A
NEW QUESTION # 95
In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?
- A. It is an uneconomical approach to obtaining information.
- B. It involves the engagement client's supervisory personnel in the audit.
- C. It is only useful for audits of distant locations.
- D. It creates apprehension about the audit engagement.
Answer: B
NEW QUESTION # 96
The head of customer service asked the chief audit executive (CAE) whether internal auditors could assist her staff with conducting a risk self-assessment in the customer service department The CAE promised to meet with customer service managers analyze relevant business processes and come up with a proposal Who is most likely to be the final approver of the engagement objectives and scope?
- A. Senior management of the organization
- B. The chief audit executive
- C. The head of customer service
- D. The board of directors
Answer: C
NEW QUESTION # 97
Cross-referencing individual payroll time cards to personnel department records and reports would allow an internal auditor to determine whether:
- A. Individuals are bona fide employees.
- B. Individuals were paid at the proper rates.
- C. Individuals were paid only for time worked.
- D. Personnel department records agree with payroll accounting records.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 98
Information gathered in a forensic investigation of business fraud is usually gathered with which of the following standards in mind?
- A. Generally Accepted Accounting Principles.
- B. Legal evidence.
- C. The International Professional Practices Framework.
- D. Generally Accepted Auditing Standards.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 99
Which of the following is an example of the verification of internal documentary evidence?
- A. Recalculating a customer's purchase order.
- B. Reviewing a carrier's bill of lading.
- C. Vouching a copy of a sales invoice to receivables.
- D. Reconciling a vendor's month-end statement.
Answer: C
NEW QUESTION # 100
Which of the following statements is not true about the oversight and review of working papers by the chief audit executive (CAE)?
- A. The CAE is responsible for all significant professional judgments made during the audit process and should therefore personally review working papers to ensure conclusions were professionally arrived at.
- B. The CAE has ultimate responsibility for reviewing working papers and remains accountable for the achievement of objectives and the quality of work.
- C. The CAE, although having overall responsibility for reviewing work completed, can delegate such task to appropriately experienced internal audit staff.
- D. The need for CAE review depends on the proficiency and experience of the internal auditor and the complexity of the task.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 101
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