IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 131:

  Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

  A. Verify that amounts are correct.

  B. Verify that payments are on time.

  C. Verify that recipients are valid employees.

  D. Verify that benefits deductions are accurate.

  Correct Answer: C

• Question 132:

  Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?

  A. To evaluate controls regarding the computer security of an oil refinery.

  B. To examine the processes involved in exploring, developing, and operating a gold mine.

  C. To assess the likelihood and impact of events associated with operating a finished goods warehouse.

  D. To link a financial institution's business objectives to a work unit responsible for the associated risk.

  Correct Answer: C

• Question 133:

  When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?

  1.

  Add value.

  2.

  Improve operations.

  3.

  Provide assurance that the internal audit activity conforms with the Standards.

  4.

  Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.

  A. 1 only

  B. 1 and 2 only

  C. 1 and 3 only

  D. 1, 2, 3, and 4

  Correct Answer: D

• Question 134:

  A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

  A. The corporate risk register.

  B. The strategic plan.

  C. Internal and external audit reports.

  D. The board's meeting records.

  Correct Answer: B

• Question 135:

  Which of the following conditions are necessary for successful change management?

  1.

  Decisions and necessary actions are taken promptly.

  2.

  The traditions of the organization are respected.

  3.

  Changes result in improvement or reform.

  4.

  Internal and external communications are controlled.

  A. 1 and 2

  B. 1 and 3

  C. 2 and 3

  D. 2 and 4

  Correct Answer: B

• Question 136:

  When creating the internal audit plan, the chief audit executive should prioritize engagements based primarily on which of the following?

  A. The last available risk assessment.

  B. Requests from senior management and the board.

  C. The longest interval since the last examination of each audit universe item.

  D. The auditable areas required by regulatory agencies.

  Correct Answer: A

• Question 137:

  An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?

  A. Manage and coordinate risk management processes.

  B. Audit risk management processes.

  C. Become involved in risk oversight committees, monitoring activities, and status reporting.

  D. Accept management's responsibility for risk management without board approval.

  Correct Answer: D

• Question 138:

  Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

  A. A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

  B. A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

  C. A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

  D. A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

  Correct Answer: A

• Question 139:

  Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?

  A. Improper segregation of duties.

  B. Incentives and bonus programs.

  C. An employee's reported concerns.

  D. Lack of an ethics policy.

  Correct Answer: C

• Question 140:

  An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?

  A. Observe corrective measures.

  B. Seek a management assurance declaration.

  C. Follow up during the next scheduled audit.

  D. Conduct appropriate testing to verify management responses.

  Correct Answer: D