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Certified Internal IIA-CIA-Part2 Exam Practice Dumps
IIA-CIA-Part2 exam is a certification exam for internal auditors who want to demonstrate their knowledge and expertise in the practice of internal auditing. IIA-CIA-Part2 exam is part of the Certified Internal Auditor (CIA) certification program offered by the Institute of Internal Auditors (IIA). The IIA-CIA-Part2 exam covers a wide range of topics related to the practice of internal auditing, including governance and risk management, communication, engagement planning, and conducting internal audit engagements.
IIA-CIA-Part2 (Practice of Internal Auditing) Certification Exam is a comprehensive certification that provides individuals with a competitive edge in the field of internal auditing. IIA-CIA-Part2 exam covers a broad range of topics and is designed to test the candidate's knowledge of the internal auditing profession. Practice of Internal Auditing certification is highly respected in the profession and is recognized globally, making it a valuable asset for individuals seeking employment opportunities in the field of internal auditing.
IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION # 56
According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management's response to audit recommendations?
- A. Oversee the corrective actions undertaken by management, and determine the need and scope for additional work.
- B. Evaluate and verify management's response, and determine the need and scope for additional work.
- C. Evaluate and verify management's response, and establish timelines for corrective action by management.
- D. Oversee the corrective actions undertaken by management, and establish timelines for corrective action by management.
Answer: B
NEW QUESTION # 57
An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?
- A. Examine the seven loans to determine if there is a pattern. Summarize amounts and include in the engagement final communication.
- B. Report the amounts to the loan committee and leave it up to them to correct. Take no further follow-up action at this time and do not include the items in the engagement final communication.
- C. Follow up with the appropriate vice president and include the vice president's acknowledgment of the situation in the engagement final communication.
- D. Determine the amount of the differences and make an assessment as to whether the dollar differences are material. If the amounts are not material, not in violation of government regulations, and can be rationally explained, omit the observation from the engagement final communication.
Answer: B
NEW QUESTION # 58
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. There was insufficient time to obtain management's response during the draft reporting process.
- B. Management's response to an audit report is generally not a requirement.
- C. Internal controls were found to be properly designed and operating effectively although operations are deemed inefficient.
- D. An internal audit report contains no observations.
Answer: D
NEW QUESTION # 59
The internal auditor's opinion in terms of due professional care should be:
- A. Limited to the effectiveness of internal controls.
- B. Expressed only when consensus with top management has been achieved.
- C. Based on sufficient factual evidence.
- D. Based on experience and free of all bias.
Answer: C
NEW QUESTION # 60
In response to an accounts receivable confirmation, a customer indicated that the invoice listed on the confirmation letter had been paid two months earlier.
This may indicate that:
- A. The receivable should be written off.
- B. Fraudulent activity has occurred.
- C. The customer is a bad credit risk.
- D. The receivable was selected for confirmation in error.
Answer: B
NEW QUESTION # 61
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. Assess the status of corrective action in a follow-up engagement in six months.
- B. Meet with the audit committee to determine the appropriate follow-up action.
- C. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
- D. Adjust the scope of the next scheduled audit to determine that the problems have been resolved.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 62
An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?
- A. Option A
- B. Option C
- C. Option B
- D. Option D
Answer: C
NEW QUESTION # 63
An internal auditor was reviewing the procurement department's tender documentation for completeness He documented all discrepancies but the procurement manager disagreed with his findings Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have prevented this situation?
- A. The auditor should have instructed procurement workers that changes to the database during the course of the audit were strictly forbidden
- B. The auditor should have extracted a list of logs and identified any actions that were executed in the database during the audit
- C. The internal auditor should have created a more thorough work program, which would address audit criteria and potential causes in more detail
- D. The auditor should have ensured the preservation of audit evidence by taking screenshots or extracting tender documents
Answer: D
NEW QUESTION # 64
An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board iF.
I.
In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II.
Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III.
The cost of modifying the sales system to include a preventive control is less than $100,000.
- A. I only
- B. III only
- C. I, II, and III
- D. I and III only
Answer: A
NEW QUESTION # 65
An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?
1. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
2. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
3. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
4. Do nothing because management has agreed to address the problem.
- A. II and III only
- B. IV only
- C. III only
- D. I and II only
Answer: A
NEW QUESTION # 66
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. Effect.
- C. Client accomplishments.
- D. Supportive information.
Answer: B
NEW QUESTION # 67
Which of the following items should be addressed in an organization's privacy statement?
I.Intended use of collected information.
II.
Data storage and security.
III.
Network/infrastructure authentication controls.
IV.
Data retention policy of the organization.
- A. II, III, IV, and V only.
Parties authorized to access information. - B. I and IV only.
- C. I and II only.
- D. I, II, and V only.
Answer: D
NEW QUESTION # 68
An airline contracted with an external service provider to perform maintenance on all aircraft ground support equipment. Management then asked the internal audit activity (IAA) to evaluate the controls in place that would permit appropriate oversight of the service provider in maintaining required maintenance standards.
According to the International Professional Practices Framework, which of the following would be the most appropriate course of action for the IAA to undertake to establish the engagement objectives?
- A. Obtain a copy of the maintenance contract and review the contract for pricing discrepancies.
- B. Develop a preliminary audit program and obtain senior management's approval.
- C. Conduct a preliminary assessment of the risks associated with the maintenance contract.
- D. Develop a draft audit plan and create an appropriate scope and resource schedule.
Answer: C
NEW QUESTION # 69
According to IIA guidance, which of the following are benefits to the internal audit activity when conducting an assurance mapping exercise?
- A. Resolution of identified testing errors, and consolidation of risk reporting efforts.
- B. Identification of gaps in risk coverage, and consolidation of risk reporting efforts.
- C. Identification of gaps in risk coverage, and minimization of duplicate assurance efforts.
- D. Resolution of identified testing errors, and minimization of duplicate assurance efforts.
Answer: C
NEW QUESTION # 70
Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?
- A. The service provider's experience in the type of work being considered.
- B. The financial interest the service provider may have in the organization.
- C. Compensation or other incentives that may be applicable to the service provider.
- D. The relationship the service provider may have had with the organization or the activities being reviewed.
Answer: A
NEW QUESTION # 71
Which of the following statements is true regarding the communication of audit engagement observations?
- A. Criteria, condition, cause, and effect must be communicated for all engagement observations.
- B. Criteria, condition, cause, and effect must be communicated for material observations only.
- C. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only.
- D. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adquate compensating key controls.
Answer: A
NEW QUESTION # 72
According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?
- A. Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.
- B. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.
- C. Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.
- D. Have employees annually sign a code of conduct requiring that they report any known violations.
Answer: B
NEW QUESTION # 73
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. Effect.
- C. Client accomplishments.
- D. Supportive information.
Answer: B
NEW QUESTION # 74
Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?
1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.
2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.
3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.
4. Communicate to senior management a summary report on the status and adequacy of audit resources.
- A. 2 and 4 only
- B. 2, 3, and 4
- C. 1, 2, and 4
- D. 1 and 3 only
Answer: C
NEW QUESTION # 75
An organization has an opening for an entry-level internal audit position. When interviewing for the position, which of the following is the least important skill for an entry-level internal auditor?
- A. Conflict resolution skills.
- B. Interpersonal skills.
- C. Time management skills.
- D. Communication skills.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 76
Which of the following conditions is the strongest indicator of possible fraud?
- A. Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.
- B. A condition of excess manufacturing waste material.
- C. An assistant treasurer who refuses to take vacations.
- D. A manager who is often over budget at the end of a reporting period.
Answer: C
NEW QUESTION # 77
The chief audit executive (CAE) of a large retail operation believes that senior management has accepted a level of risk that exceeds the organization's current risk tolerance with respect to a major expansion. The CAE plans to meet with senior management to discuss these concerns. According to IIA guidance, which of the following would be an appropriate course of action in preparation for this meeting?
Understand management's basis for the decision.
Advise the board of the concern and upcoming meeting.
Ascertain which members of management have accepted the risk.
Determine if management has the authority to accept the risk.
- A. 1 and 2 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: D
NEW QUESTION # 78
Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
I. Facilitated meeting
II. Survey
III.
Management-produced analysis
- A. I only
- B. II and III only
- C. I, II, and III
- D. I and III only
Answer: B
NEW QUESTION # 79
An internal audit manager is supervising an engagement. A senior auditor deviates from the approved engagement plan but meets all deadlines in the approved time schedule. Which activity is not required for the audit manager to provide proper engagement supervision?
- A. Approve the deviation from the engagement plan.
- B. Actively participate in audit procedures.
- C. Ensure that all engagement objectives are met.
- D. Ensure compliance with the time schedule.
Answer: B
NEW QUESTION # 80
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