IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 121:

  According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

  A. The employee's name listed on organization's payroll is compared to the personnel records.

  B. Payroll time sheets are reviewed and approved by the timekeeper before processing.

  C. Employee access to the payroll database is deactivated immediately upon termination.

  D. Changes to payroll are validated by the personnel department before being processed.

  Correct Answer: B

• Question 122:

  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.

  A. 1 and 2

  B. 1 and 3

  C. 2 and 4

  D. 3 and 4

  Correct Answer: D

• Question 123:

  Which of the following situations would justify the removal of a finding from the final audit report?

  A. Management disagrees with the report findings and conclusions in their responses.

  B. Management has already satisfactorily completed the recommended corrective action.

  C. Management has provided additional information that contradicts the findings.

  D. Management believes that the finding is insignificant and unfairly included in the report.

  Correct Answer: C

• Question 124:

  When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?

  A. The need and availability of automated support.

  B. The potential impact of key risks.

  C. The expected outcomes and deliverables.

  D. The operational and geographic boundaries.

  Correct Answer: B

• Question 125:

  When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?

  1.

  The competency and qualifications of the audit staff for specific assignments.

  2.

  The effectiveness of IAA staff performance measures.

  3.

  The number of training hours received by staff auditors compared to the budget.

  4.

  The geographical dispersion of audit staff across the organization.

  A. 1 and 3

  B. 1 and 4

  C. 2 and 3

  D. 2 and 4

  Correct Answer: B

• Question 126:

  According to IIA guidance, which of the following are the most important objectives for helping to ensure the appropriate completion of an engagement?

  1.

  Coordinate audit team members to ensure the efficient execution of all engagement procedures.

  2.

  Confirm engagement workpapers properly support the observations, recommendations, and conclusions.

  3.

  Provide structured learning opportunities for engagement auditors when possible.

  4.

  Ensure engagement objectives are reviewed for satisfactory achievement and are documented properly.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: B

• Question 127:

  An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

  A. Verify that approvals of purchasing documents comply with the authority matrix.

  B. Observe whether the purchase orders are sequentially numbered.

  C. Examine whether the sales department supervisor approves invoices for payment.

  D. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.

  Correct Answer: C

• Question 128:

  Which of the following is the most important concept to be included in a consulting engagement agreement?

  A. Define the duties and responsibilities needed from management to perform the engagement.

  B. Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.

  C. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

  D. Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.

  Correct Answer: C

• Question 129:

  Which of the following statements is false regarding audit criteria?

  A. Audit criteria should be consistent across audit assignments.

  B. Audit criteria should represent reasonable standards against which to assess existing conditions.

  C. Audit criteria should provide flexibility but allow identification of nonadherence.

  D. Audit criteria should equate to good or acceptable management practices.

  Correct Answer: A

• Question 130:

  An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?

  A. Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.

  B. Confirm the decision with management and document this decision in the audit file.

  C. Document the issue in the audit file and follow up until the issues are resolved.

  D. Initiate an assurance engagement on the unresolved issues.

  Correct Answer: B