IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 101:

  Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

  A. Report follow-up activities to senior management.

  B. Implement follow-up procedures to evaluate residual risk.

  C. Determine the costs of implementing the recommendations.

  D. Evaluate the extent of improvements.

  Correct Answer: C

• Question 102:

  Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?

  A. Identify and manage risks in line with the organization's risk appetite.

  B. Ensure that a proper and effective risk management process exists.

  C. Attain an adequate understanding of the organization's key risk mitigation strategies.

  D. Identify and ensure that appropriate controls exist to mitigate risks.

  Correct Answer: C

• Question 103:

  According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

  A. Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.

  B. Monitor amounts paid each period and compare them to the budget to identify potential issues.

  C. Compare employee addresses to vendor addresses to identify potential employee fraud.

  D. Monitor customer quality complaints compared to the prior period to identify vendor issues.

  Correct Answer: D

• Question 104:

  According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

  A. The number, experience, and availability of audit staff as well as the nature, complexity, and time constraints of the engagement.

  B. The appropriateness and sufficiency of resources and the ability to coordinate with external auditors.

  C. The number, proficiency, experience, and availability of audit staff as well as the ability to coordinate with external auditors.

  D. The appropriateness and sufficiency of resources as well as the nature, complexity, and time constraints of the engagement.

  Correct Answer: D

• Question 105:

  According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?

  1.

  Coordinate post-engagement conferences to discuss the final audit report with management.

  2.

  Include management's responses in the final audit report.

  3.

  Review and approve the final audit report.

  4.

  Determine who will receive the final audit report.

  A. 1 and 2

  B. 1 and 4

  C. 2 and 3

  D. 3 and 4

  Correct Answer: D

• Question 106:

  According to IIA guidance, which of the following statements is false regarding a review of the controls in place to prevent fraud?

  A. The review should focus on the efficiency of the controls in place to prevent fraud.

  B. The scope of the review does not need to include all operating areas of the organization.

  C. The cost of the control should be compared to the benefit of mitigating the related risk.

  D. The review should assess whether the internal controls can be circumvented.

  Correct Answer: A

• Question 107:

  A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?

  1.

  The client manager and her superior.

  2.

  Anyone who may object to the report's validity.

  3.

  Anyone required to take action.

  4.

  The same individuals who receive the final report.

  A. 1 only

  B. 1 and 2 only

  C. 1, 2, and 3

  D. 1, 2, and 4

  Correct Answer: C

• Question 108:

  Which of the following statements is true pertaining to interviewing a fraud suspect?

  1.

  Information gathered can be subjective as well as objective to be useful.

  2.

  The primary objective is to obtain a voluntary written confession.

  3.

  The interviewer is likely to begin the interview with open-ended questions.

  4.

  Video recordings always should be used to provide the highest quality evidence.

  A. 1 only

  B. 4 only

  C. 1 and 3

  D. 2 and 4

  Correct Answer: C

• Question 109:

  An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?

  A. Analytical procedures.

  B. Detail testing.

  C. Test of design.

  D. Test of control.

  Correct Answer: B

• Question 110:

  Which of the following is not a direct benefit of control self-assessment (CSA)?

  A. CSA allows management to have input into the audit plan.

  B. CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

  C. CSA can improve the control environment.

  D. CSA increases control consciousness.

  Correct Answer: A