[Q218-Q242] IIA-CIA-Part2 100% Guarantee Download IIA-CIA-Part2 Exam PDF Q&A [Aug 13, 2022] – IT Certification Exam Questions & Answers

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IIA-CIA-Part2 100% Guarantee Download IIA-CIA-Part2 Exam PDF Q&A [Aug 13, 2022]

Get IIA-CIA-Part2 Actual Free Exam Q&As to Prepare for Your IIA Certification

NO.218 Because of an abundance of high priority requests from management, an internal audit activity no longer has the resources to meet all of its commitments contained in the annual audit plan. Which of the following would be the best course of action for the chief audit executive to follow?

Continue with the plan and seek opportunities to adjust priorities and reallocate resources.

Present a reassessment of the plan to the board and senior management for consideration.

Reassess the plan and either cancel or divert resources away from the lowest priority activities.

Advise the board immediately and seek their support for additional resources to meet the needs of the plan.

NO.219 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.

NO.220 To effectively communicate the acceptance of risk in an organization a chief audit executive must first consider which of the following?

The organization’s view on risk tolerance

The organization’s principal risk events.

The organization’s risk response strategies

The organization’s major control activities

NO.221 Which of the following conditions should a chief audit executive take into account when deciding if a follow- up audit engagement is necessary?
* The reported observations were significant and high risk.
* Internal audit resources and the time it will require for follow-up.
* Management may not have the resources to take action.
* Management has previously decided not to take any action.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

NO.222 An internal auditor has completed an audit of an organization’s activities and is ready to issue a report.
However, the client disagrees with the internal auditor’s conclusions. The auditor should:

Withhold the issuance of the audit report until agreement on the issues is obtained.

Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.

Issue the audit report and omit the client’s conclusion as it is not the opinion of the internal auditor.

Perform additional work, with the client’s concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.

NO.223 Which of the following would be the most important reason for the chief audit executive (CAE) to use inputs from management strategy to update the audit universe?

The audit charter requires the CAE to update the audit universe before embarking on the selection of potential audit engagements.

The CAE wants to consider the organization’s strategic plan including attitude toward risk and the degree of difficulty to achieving planned objectives.

The CAE wants to cover management planned activities for the upcoming year in the audit plan.

The CAE wants to determine internal audit resourcing requirements to cover the organization’s major processes and activities over time.

NO.224 Under what circumstances would internal audit not become involved when intentional misconduct is suspected?

Management is involved in wrongdoing.

Management is running a parallel investigation.

Management does not believe a trusted employee could be guilty.

Management does not maintain strong internal controls.

NO.225 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:

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.

All employees were correctly paid during the year and their pay was correctly computed.

The computer application and its control procedures were processing payroll transactions correctly during the past year.

All of the above.

NO.226 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?

Issue an exception report.

Pay the amount billed and adjust the inventory account for the difference.

Return the invoice to the vendor for correction.

Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.

NO.227 Which of the following is not likely to be included as an audit step when assessing vendor performance policies?

Determine whether agreed-upon lot sizes were sent by vendors.

Determine whether only authorized items were received from vendors.

Determine whether the balances owed to vendors are correct.

Determine whether the quality of the goods purchased from the vendors has been satisfactory.

NO.228 Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?

Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.

Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.

Use generalized audit software to match the claimant identification number with a master list of valid policyholders.

Develop batch controls over all items received from a particular hospital and process those claims in batches.

NO.229 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.

NO.230 According to IIA guidance, which of the following are benefits to the internal audit activity when conducting an assurance mapping exercise?

Identification of gaps in risk coverage, and minimization of duplicate assurance efforts.

Identification of gaps in risk coverage, and consolidation of risk reporting efforts.

Resolution of identified testing errors, and minimization of duplicate assurance efforts.

Resolution of identified testing errors, and consolidation of risk reporting efforts.

NO.231 An internal auditor was assigned to conduct an inventory control and stock room area engagement. During the audit, the auditor observed that there were some items that have a shelf life expiration date requirement based on a certificate of conformance received with the product. The certificates of conformance are kept on file in the inventory area office and the expiration date is verified at the time the item is taken from stock. The auditor reviewed the items in the stock room and also on the production floor for the expiration dates to see if there was any expired product. All items with a shelf life requirement were found to be within the expiration date requirement. Which of the following recommendations would be appropriate?

Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.

Permit production staff the access to files where the certificates of conformity are kept, so they can choose the items with the closest expiration date.

Determine the cost of inventory for the items that have a shelf life and apply a new policy regarding inventory levels to be maintained (i.e., minimums, maximums, reorder points etc.).

Add to the product label a “use by date” line, enter the expiration at the time of receipt, and perform periodic inventory checks.

NO.232 An organization decides to create an internal audit function and hires a new chief audit executive (CAE). Which of the following should the CAE first consider when developing the internal audit process?

Requirements of the external auditors to ensure an efficient coordination of audit effort.

Sufficient resources to adequately meet the needs of the annual audit plan.

Alignment of internal audit objectives with the organization’s strategic plan.

An appropriate training plan for audit staff.

NO.233 Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?

The number of customer inquiries recorded per day.

The percentage of customer issues resolved within 24 hours.

The number of customer complaints recorded per day.

The percentage of total customers served per day.

NO.234 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?

An ineffective customer service department.

Poor controls in the invoice approval processes.

Check tampering by an employee.

Submission of fraudulent expense reports.

NO.235 An organization has a mature control environment but limited internal audit resources Given this scenario, on which of the following should the internal auditors focus their testing?

Detective compensating controls

Preventive compensating controls

Detective Key controls

Preventive key controls

NO.236 An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
“A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.” The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor’s workpaper?

Use of audit verification symbols to show that each file was examined.

Removal of the employee names to protect their confidentiality.

Justification for the sample size.

Listing of the actual documents examined for each employee.

NO.237 To which of the following aspects should the chief audit executive give the most consideration while communicating an identified unacceptable risk to management?

The organization’s attitude to hierarchy

The organization’s whistleblowing strategy

The organization’s ongoing risk monitoring process

The organization’s risk management policy

NO.238 The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:

The cost of audit involvement can be minimized.

There are clearly defined points at which to issue audit comments.

Redesign costs can be minimized.

The threat of lack of audit independence can be minimized.

NO.239 If the chief audit executive believes that senior management has accepted a level of residual risk that is unacceptable to the organization, they should:

Accept the decision of senior management as they are ultimately responsible for risk management.

Report the concern directly to the board.

Discuss the concern with management and if not resolved, escalate it to the board.

Disclose the issue in the audit report when auditing the area where the risk was identified.

NO.240 Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

Lump-sum contract.

Cost-plus contract.

Unit-price contract.

Indefinite delivery contract.

NO.241 Which of the following controls in a computerized consumer loan system of a major bank would be the least effective in detecting a fraudulent loan?

All log-in accounts become inaccessible after three incorrect password attempts.

Loan approvals over a pre-determined limit must have management approval.

Customer information is matched to payment data prior to funds disbursement.

System controls prevent supervisors from delegating their approval authority during vacation periods.

NO.242 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.

IIA IIA-CIA-Part2 Exam Syllabus Topics:

Topic	Details
Topic 1	Determine engagement procedures and prepare the engagement work program Establishing a Risk-based Internal Audit Plan
Topic 2	Identify significant risk exposures and control and governance issues Interpret the types of consulting engagements
Topic 3	Identify a risk management framework to assess risks and prioritize audit engagements based on the results of a risk assessment Communicating and Reporting to Senior Management and the Board
Topic 4	Describe coordination of internal audit efforts with the external auditor, regulatory oversight bodies Determine engagement objectives, evaluation criteria, and the scope of the engagement
Topic 5	Identify sources of potential engagements Describe policies and procedures for the planning, organizing, directing
Topic 6	Complete a detailed risk assessment of each audit area, including evaluating and prioritizing risk and control factors Plan the engagement to assure identification of key risks and controls Proficient
Topic 7	Prepare workpapers and documentation of relevant information to support conclusions and engagement results Determine the level of staff and resources needed for the engagement