[Jun 01, 2024] IIA IIA-CIA-Part2 Real Exam Questions and Answers FREE [Q50-Q71] – IT Certification Exam Questions & Answers

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[Jun 01, 2024] IIA IIA-CIA-Part2 Real Exam Questions and Answers FREE

Pass IIA IIA-CIA-Part2 Exam Info and Free Practice Test

IIA-CIA-Part2 exam is designed by the Institute of Internal Auditors (IIA) and is an important certification for individuals who wish to pursue a career in the field of internal auditing. IIA-CIA-Part2 exam is known as the Practice of Internal Auditing and is one of the three exams required to become a Certified Internal Auditor (CIA).

Q50. Which of the following statements is true regarding engagement planning?

The engagement objectives are the boundaries for the engagement, which outline what will be included in the review

The risk-based objectives of the engagement can be determined once the scope of the engagement has been formed

For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined

For an assurance engagement, once the scope is established and testing has begun, the scope cannot be modified.

Q51. Which of the following risks assumes an absence of compensating controls in the area being reviewed?

Control risk.

Detection risk.

Inherent risk.

Sampling risk.

Q52. According to the Standards, which of the following best describes what must be agreed upon to establish an understanding with clients prior to starting a consulting engagement?

The engagement objectives, access to clients records, and expectations.

The engagement objectives, scope, and time frame to complete the engagement.

The engagement scope, opportunities for making significant improvements, and client expectations.

The engagement objectives, scope, respective responsibilities, and other client expectations.

Q53. During an audit, an employee, who does not want to be identified, offers to provide information that would be damaging to the organization and may concern illegal activities. Which of the following actions by the auditor would not be consistent with the IIA Code of Ethics and Standards?

Promising to maintain the employee’s anonymity and listening to the information.

Suggesting that the employee consider talking to legal counsel.

Informing the employee that an attempt will be made to keep the source of the information confidential while looking into the matter further.

Informing the employee of other methods of communicating this type of information.

Q54. Which of the following potential performance measures should an auditor recommend excluding from a performance scorecard?

Number of employees.

Market share.

Number of customer complaints.

Training dollars per employee.

Q55. As part of internal audit’s assistance with an annual external audit, the internal auditors are required to do a preliminary analytical review of an bank account balances. This involves verifying the current year end balances as web as comparing the current year end balances with previous year end balances to highlight significant changes. Which of the following is the most reliable source for verification of the current year end bank balances?

Bank confirmations

Internal bonk statements

Bank reconciliations as of the end of the year

Bank account general ledger balancer as of the end of the year

Q56. According to IIA guidance, which of the following activities is most likely to enhance stakeholders’ perception of the value the internal audit activity (IAA) adds to the organization?
1. The IAA uses computer-assisted audit techniques and IT applications.
2. The IAA uses a consistent risk-based approach in both its planning and engagement execution.
3. The IAA demonstrates the ability to build strong and constructive relationships with audit clients.
4. The IAA frequently is involved in various project teams and task forces in an advisory capacity.

1 and 2

1 and 3

2 and 4

3 and 4

Q57. An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?

Compare the planned outputs with the actual outputs.

Ascertain the costs of materials purchased.

Evaluate the plant’s ability to meet production quotas.

Review the levels of scrap and rework.

Q58. In an organization with a large internal audit activity that has several audit teams performing engagements simultaneously which of the following tasks is an engagement supervisor most likely to perform during the planning phase of a new engagement?

Establish a means for resolving any professional judgment differences over ethical issues that may arise during the engagement.

Approve the engagement work program to ensure the program is designed to achieve the engagement objectives

Evaluate whether the testing and results support the engagement results and conclusion

Review the sample testing results for exceptions.

Q59. 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?

Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.

Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.

Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.

Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.

Q60. Which of the following would most likely prompt special notification from the chief audit executive to same management?

Operational management has decried to weigh an audit issue against Vie organization’s risk tolerance

A controls inaccurate operation has materially impacted the accuracy of the poor year’s financial statements

Occurrences of asset misappropriation have been identified as a result of an ineffective operational control design

The controls that management performed to confirm compliance with health and safety standards were not systematically documented

Q61. Which of the following statements is true regarding internal auditors and other assurance providers?

Assurance providers who report to management and/or are part of management cannot provide control serf-assessments services

Internal auditors should always reperform and validate audit work completed by external assurance providers

Internal auditors may rely on the work of internal compliance teams to expand their coverage of the organization without increasing direct audit

hours Internal auditors can rely on the work of other assurance providers only rf the other assurance providers report directly to the board

Q62. Risk assessments can vary in format, but generally include:
1.A description of identified risks.
2.Tests of audit controls.
3.A system of rating risks.
4.Sample size identification.

1 and 2 only

1 and 3 only

1, 3, and 4 only

2, 3, and 4 only

Q63. According to IIA guidance, which of the following should be considered when creating policies and procedures for the internal audit activity (IAA)?

Number of auditors, complexity of audit activities, and structure of the IAA.

Number of auditors, complexity of audit activities, and audit staff skills and competencies.

Number of auditors, structure of the IAA, and audit staff skills and competencies.

Complexity of audit activities, structure of the IAA, and audit staff skills and competencies.

Q64. An internal auditor wants to determine whether employees are complying with the information security policy, which prohibits leaving sensitive information on employee desks overnight. The auditor checked a sample of
90 desks and found eight that contained sensitive information. How should this observation be reported, if the organization tolerates 4 percent noncompliance?

The matter does not need to be reported, because the noncompliant findings fall within the acceptable tolerance limit.

The deviations are within the acceptable tolerance limit, so the matter only needs to be reported to the information security manager.

The incidents of noncompliance fall outside the acceptable tolerance limit and require immediate corrective action, as opposed to reporting.

The incidents of noncompliance exceed the tolerance level and should be included in the final engagement report.

Q65. Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?

The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.

Conditions that were not specifically considered by the auditor may go untested.

The approach requires the creation of “dummy companies,” possibly destroying or altering actual company data in the process.

Inclusion of atypical data in the test data may cause errors to be noted on the exception report.

Q66. Which of the following factors should a chief audit executive consider when determining the audit universe?
1.Components of the organization’s strategic plan.
2.Inputs from senior management and the board.
3.Views of competitors and business associates.
4.Results of exit interviews with departing employees.

1 and 2 only

2 and 4 only

1, 2, and 4

2, 3, and 4

Q67. The internal auditor of a bank has developed a multiple regression model which has been used for a number of years to estimate the amount of interest income from commercial loans. During the current year, the auditor applies the model and discovers that the R2 value has decreased dramatically, but that the model otherwise seems to be working correctly. Which of the following conclusions is justified by the change?

Changing to a cross-sectional regression analysis should cause the R2 to increase.

Regression analysis is no longer an appropriate technique to estimate interest income.

Some new factors, not included in the model, are causing interest income to change.

A linear regression analysis would increase the model’s reliability.

Q68. An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

Interviews provide the opportunity to insert questions to probe promising areas.

Interviews are the most efficient way to upgrade the information to the level of objective evidence.

Interviewing is the least costly audit technique when a large amount of information is involved.

Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.

Q69. Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

Observation.

Tracing.

Recomputation.

Vouching.

Q70. A manager of one of a retailer’s several retail outlets is stealing cash from cash sales, recording the sales as accounts receivable, and subsequently writing off the fictitious accounts receivable as bad debts. Which of the following comparisons would be most effective in signaling the possibility of such a fraud?

Bad debt expense as a percentage of sales, compared to that of the other outlets.

Bad debt expense as a percentage of sales, compared to that of previous years.

Percentage of past-due accounts receivable, compared to that of the other outlets.

Percentage of past-due accounts receivable, compared to that of previous years.

Q71. While investigating a compromised Web server, an auditor found that the Web server logs had been deleted. The auditor should recommend that the Web server logs be:

Generated and maintained on a separate secure server.

Accessible by administrative users only

Encrypted to ensure that the logs cannot be deleted.

Restored automatically to the Web server from backup files.

Individuals who successfully pass the IIA-CIA-Part2 exam are recognized as knowledgeable and skilled professionals in the field of internal auditing. Practice of Internal Auditing certification provides individuals with an opportunity to advance their careers and earn higher salaries. It also demonstrates a commitment to the profession and a dedication to maintaining the highest standards of integrity and professionalism.

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