Real IIA IIA-CIA-Part2 Exam Dumps with Correct 600 Questions and Answers
Valid IIA-CIA-Part2 Test Answers & IIA IIA-CIA-Part2 Exam PDF
IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION 72
What would be used to determine the collectability of accounts receivable balances?
- A. An aged accounts receivable listing.
- B. The file of related shipping documents.
- C. Positive accounts receivable confirmations.
- D. Negative accounts receivable confirmations.
Answer: A
NEW QUESTION 73
The chief audit executive's responsibility regarding control processes includes:
- A. Maintaining the organization's governance processes.
- B. Ensuring that the internal audit activity assesses all control processes annually.
- C. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
- D. Overseeing the establishment of internal control processes.
Answer: C
NEW QUESTION 74
Which of the following events would most likely cause the chief audit executive to consider changing the current year's audit plan?
The government announced that new regulatory requirements will be introduced in the coming years which may significantly impact the organization's primary product.
A major competitor unexpectedly introduced a new model at a lower price point to compete with the organization's market leading product.
The organization announced a new joint venture with a long time corporate partner to introduce a new product with development costs and sales beginning next fiscal year.
An equal joint venture partner filed a lawsuit against the organization and requested that the court issue an immediate suspension of future product shipments.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 3 and 4 only
Answer: B
NEW QUESTION 75
According to the International Professional Practices Framework, the responsibility for establishing and maintaining a system to monitor the disposition of results communicated to management falls upon:
- A. Senior management.
- B. Chief audit executive.
- C. Compliance officer.
- D. Risk manager.
Answer: B
NEW QUESTION 76
As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?
I. Applicants are not required to have their signed applications legally authenticated.
II. Applicants' educational information is not validated with the educational institution before employment is offered.
III. Information related to applicants' long-term work history is not validated before employment is offered.
- A. III only
- B. II and III only
- C. I, II, and III
- D. I and II only
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 77
A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?
- A. Evaluate the completeness of the report and management's responses to identified deficiencies.
- B. Assert whether the described and reported control processes and systems exist.
- C. Assess whether senior management adequately supports and promotes the internal control culture described in the report.
- D. Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.
Answer: A
Explanation:
Section: Volume E
Explanation
Explanation/Reference:
NEW QUESTION 78
A chief audit executive (CAE) reviews the supervision of an internal audit engagement Which of the following would most likely assure the CAE that the engagement had adequate supervision?
- A. The supervisor meets periodically with management in the reviewed area to get feedback during the engagement.
- B. The supervisor reviews and initials internal audit workpapers for the engagement
- C. The engagement supervisor has an open door pokey for audit team members to discuss concerns
- D. The supervisor reviews weekly progress reports from the audit team members
Answer: B
NEW QUESTION 79
Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?
- A. The availability of the auditors in relation to the availability of key client staff.
- B. Whether the budgeted hours are sufficient to complete the audit within the current scope.
- C. Whether outside resources will be needed, and their availability.
- D. The amount of experience the auditors have conducting audits in the specific area of the organization.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION 80
According to IIA guidance, which of the following strategies would be the least effective in helping a chief audit executive build a stronger relationship with the board?
- A. Consider the possible repercussions created by commentary on deficiencies.
- B. Minimize instances of ad hoc communications with board members.
- C. Avoid making presumptuous comments without sufficient facts.
- D. Consider formality and tone of communications to ensure they are appropriate.
Answer: B
NEW QUESTION 81
The most common motivation for management fraud is the existence of:
- A. The challenge of committing the perfect crime.
- B. Job dissatisfaction.
- C. Financial pressures on the organization.
- D. Vices, such as a gambling habit.
Answer: C
NEW QUESTION 82
An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors can conclude that:
- A. All of the above.
- B. All employees were correctly paid during the year and their pay was correctly computed.
- C. The computer application and its control procedures were processing payroll transactions correctly during the past year.
- D. The system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.
Answer: C
NEW QUESTION 83
With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?
1. Business unit management.
2. Chief audit executive.
3. Audit committee.
4. Chief executive officer.
- A. 1 and 3 only
- B. 1, 2, 3, and 4
- C. 2 and 3 only
- D. 1 and 2 only
Answer: D
NEW QUESTION 84
Confirmation would be most effective in addressing the existence assertion for:
- A. Sales of merchandise during the regular course of business.
- B. The addition of a milling machine to a machine shop.
- C. The granting of a patent for a special process developed by the organization.
- D. Inventory held on consignment.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 85
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I.Financial measures.
II.
Internal business process measures.
III.
Client satisfaction measures.
IV.
Innovation and learning measures.
- A. III and IV only.
- B. II and IV only.
- C. II, III, and IV only.
- D. I only.
Answer: C
NEW QUESTION 86
Which of the following is least likely to vary when conducting audit engagements in different regions of an international organization?
- A. Availability of technology and technical support.
- B. Work schedules and holidays of the individual regions.
- C. Level of workpaper documentation needed to support audit observations.
- D. Application of governmental regulations to business activities.
Answer: C
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION 87
The newly appointed chief audit executive (CAE) of a large multinational corporation, with seasoned internal audit departments located around the world, is reviewing responsibilities for engagement reports.
According to IIA guidance, which of the following statements is true?
- A. The internal audit charter must identify authorized signers of engagement reports.
- B. The CAE is required to review, approve, and sign all regulatory compliance engagement reports only
- C. The CAE is required to review, approve, and sign every engagement report.
- D. The CAE may delegate responsibility for reviewing, approving and signing engagement reports, but should review the reports after they are issued.
Answer: D
NEW QUESTION 88
Recommendations should be included in the audit report in order to:
- A. Ensure that audit findings are addressed by management.
- B. Provide management with options for addressing audit findings.
- C. Ensure that audit findings are resolved in the manner suggested by the auditor.
- D. Minimize the amount of time required to correct audit findings.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 89
When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:
- A. Use generalizations.
- B. Use objective, impartial language.
- C. Notify the internal auditor of the upcoming appraisal several days in advance.
- D. Document the appraisal.
Answer: A
NEW QUESTION 90
Which of the following would be an appropriate role of the internal audit function?
- A. Determine the consequences for ethics violations.
- B. Be responsible for the management of a whistle blowing hotline.
- C. Establish the ethics policies for the organization.
- D. Evaluate the effectiveness of the organization's ethics-related activities.
Answer: D
NEW QUESTION 91
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, 2, and 4 only
- B. 2, 3, and 4 only
- C. 1, 3, and 4 only
- D. 1, 2, and 3 only
Answer: A
NEW QUESTION 92
During a consulting engagement, an internal auditor identifies new risks which will impact the scope and sufficiency of the engagement audit plan. According to the Standards, the internal auditor should:
- A. End the engagement, as the audit scope is no longer sufficient to meet the audit objective.
- B. Discuss the potential impact on the scope with the client.
- C. Continue the engagement but highlight the impacts on the audit scope in the final report.
- D. Modify the scope to incorporate the new risks and continue the engagement.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION 93
During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following controls should the auditor recommend to avoid similar delays in processing?
- A. Redundancy checks.
- B. Process monitoring.
- C. Contingency planning.
- D. Preventive maintenance.
Answer: C
NEW QUESTION 94
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, II, III, and IV.
- B. I, II, and III only
- C. II and III only
- D. I and IV only
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 95
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