IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 141:

  If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

  A. Acts that may endanger the health or safety of individuals.

  B. Acts that favor one party to the detriment of another.

  C. Acts that damage or have an adverse effect on the environment.

  D. Acts that conceal inappropriate activities in the organization.

  Correct Answer: B

• Question 142:

  According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

  A. The accounts payable supervisor, accounts payable manager, and controller.

  B. The accounts payable manager, purchasing manager, and receiving manager.

  C. The accounts payable supervisor, controller, and treasurer.

  D. The accounts payable manager, chief financial officer, and audit committee.

  Correct Answer: A

• Question 143:

  The final internal audit report should be distributed to which of the following individuals?

  A. Audit client management only

  B. Executive management only

  C. Audit client management, executive management, and others approved by the chief audit executive.

  D. Audit client management, executive management, and any those who request a copy.

  Correct Answer: C

• Question 144:

  Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?

  A. The amount of experience the auditors have conducting audits in the specific area of the organization.

  B. The availability of the auditors in relation to the availability of key client staff.

  C. Whether the budgeted hours are sufficient to complete the audit within the current scope.

  D. Whether outside resources will be needed, and their availability.

  Correct Answer: C

• Question 145:

  An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department?

  1.

  The AIC should notify HR management when the draft audit plan is being developed, as a courtesy.

  2.

  The AIC should notify HR management before the planning stage begins.

  3.

  The AIC should schedule formal status meetings with HR management at the start of the engagement.

  4.

  The AIC should finalize the scope of the engagement before communicating with HR management.

  A. 1 and 3

  B. 1 and 4

  C. 2 and 3

  D. 2 and 4

  Correct Answer: C

• Question 146:

  An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?

  1.

  Allow the auditor to decide whether to extend the audit engagement.

  2.

  Determine whether the work already completed is sufficient to conclude the engagement.

  3.

  Provide the auditor feedback on areas of improvement for future engagements.

  4.

  Provide the auditor with instructions and directions to complete the audit.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: D

• Question 147:

  Which of the following has the greatest effect on the efficiency of an audit?

  A. The complexity of deficiency findings.

  B. The adequacy of preliminary survey information.

  C. The organization and content of workpapers.

  D. The method and amount of supporting detail used for the audit report.

  Correct Answer: B

• Question 148:

  Which of the following is least likely to help ensure that risk is considered in a work program?

  A. Risks are discussed with audit client.

  B. All available information from the risk-based plan is used.

  C. Client efforts to affect risk management are considered.

  D. Prior risk assessments are considered.

  Correct Answer: D

• Question 149:

  An internal auditor notes that employees continue to violate segregation-of-duty controls in several areas of the finance department, despite previous audit recommendations. Which of the following recommendations is the most appropriate to address this concern?

  A. Recommend additional segregation-of-duty reviews.

  B. Recommend appropriate awareness training for all finance department staff.

  C. Recommend rotating finance staff in this area.

  D. Recommend that management address these concerns immediately.

  Correct Answer: B

• Question 150:

  Which of the following is the primary purpose of financial statement audit engagements?

  A. To assess the efficiency and effectiveness of the accounting department.

  B. To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.

  C. To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.

  D. To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.

  Correct Answer: C