IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 161:

  After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted. Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?

  A. The CAE should send the final report to operational and senior management and the audit committee.

  B. The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.

  C. The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.

  D. The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified.

  Correct Answer: D

• Question 162:

  Which of the following components should be included in an audit finding?

  1.

  The scope of the audit.

  2.

  The standard(s) used by the auditor to make the evaluation.

  3.

  The engagement's objectives.

  4.

  The factual evidence that the internal auditor found in the course of the examination.

  A. 1 and 2

  B. 1 and 3 only

  C. 2 and 4

  D. 1, 3, and 4

  Correct Answer: C

• Question 163:

  A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?

  1.

  Graded positive opinion.

  2.

  Negative assurance opinion.

  3.

  Limited assurance opinion.

  4.

  Third-party opinion.

  A. 1 and 3

  B. 1 and 4

  C. 2 and 3

  D. 2 and 4

  Correct Answer: C

• Question 164:

  According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?

  A. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.

  B. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.

  C. The exit conference provides only anticipated results for inclusion in the final audit communication.

  D. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.

  Correct Answer: C

• Question 165:

  Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?

  1.

  Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.

  2.

  Discuss the engagement plan with the client so the client can understand the reasoning behind the

  approach.

  3.

  Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.

  4.

  Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

  A. 1 and 2 only

  B. 1 and 4 only

  C. 2 and 3 only

  D. 3 and 4 only

  Correct Answer: A

• Question 166:

  Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?

  A. To help develop process maps.

  B. To determine segregation of duties.

  C. To identify residual risks.

  D. To test the adequacy of controls.

  Correct Answer: D

• Question 167:

  After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?

  A. Cost.

  B. Independence.

  C. Familiarity.

  D. Flexibility.

  Correct Answer: C

• Question 168:

  Which of the following statements describes an engagement planning best practice?

  A. It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.

  B. If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.

  C. The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.

  D. Engagement planning activities include setting engagement objectives that align with audit client's business objectives.

  Correct Answer: D

• Question 169:

  Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate. When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?

  1.

  The hedge documentation designating the hedge.

  2.

  The spot exchange rate on the transaction date.

  3.

  The terms of the forward contract.

  4.

  The amount of fuel purchased.

  A. 1 and 2

  B. 1 and 4

  C. 2 and 3

  D. 3 and 4

  Correct Answer: C

• Question 170:

  Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?

  A. Senior management is charged with overseeing the establishment risk management and control processes.

  B. The chief audit executive is responsible for overseeing the evaluation risk management and control processes.

  C. Operating managers are responsible for assessing risks and controls in their departments.

  D. Internal auditors provide assurance about risk management and control process effectiveness.

  Correct Answer: B