IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 281:

  When approving the final engagement report, which of the following is most critical?

  A. Opinions are adequately supported.

  B. Conclusions are reached for all objectives.

  C. Report is distributed to appropriate parties.

  D. Report is clear and concise.

  Correct Answer: A

• Question 282:

  According to the Standards, which of the following would have the least direct interest in the draft report of a compliance review of the purchasing function?

  A. Purchasing staff.

  B. Purchasing manager.

  C. Director of finance.

  D. Audit committee.

  Correct Answer: D

• Question 283:

  Which of the following would not include recommendations for process improvements?

  A. Due diligence engagement.

  B. Forensic investigation.

  C. Internal audit engagement.

  D. Consulting engagement.

  Correct Answer: A

• Question 284:

  According to IIA guidance, which of the following strategies would be the least effective in helping a chief audit executive build a stronger relationship with the board?

  A. Consider formality and tone of communications to ensure they are appropriate.

  B. Minimize instances of ad hoc communications with board members.

  C. Consider the possible repercussions created by commentary on deficiencies.

  D. Avoid making presumptuous comments without sufficient facts.

  Correct Answer: B

• Question 285:

  The chief audit executive established an internal audit activity (IAA) performance standard requiring all audit reports to be issued within 48 hours of the exit meeting with the client. Which of the following

  describes an exit meeting strategy that would best help the IAA meet this performance standard?

  A. The objective of the exit meeting is to reach agreement on audit observations.

  B. The objective of the exit meeting is to solicit action plans for audit observations.

  C. The objective of the exit meeting is to confirm final details of fieldwork.

  D. The objective of the exit meeting is to confirm understanding of audit results

  Correct Answer: D

• Question 286:

  According to the International Professional Practices Framework, which of the following would not be considered when performing an initial risk assessment in engagement planning?

  A. The reliability of management's assessment of risk.

  B. Management's process for monitoring, reporting, and resolving risk issues.

  C. Management's methodology for defining risk criteria.

  D. Risks in related activities relevant to the activity under review.

  Correct Answer: C

• Question 287:

  An airline contracted with an external service provider to perform maintenance on all aircraft ground support equipment. Management then asked the internal audit activity (IAA) to evaluate the controls in place that would permit appropriate oversight of the service provider in maintaining required maintenance standards.

  According to the International Professional Practices Framework, which of the following would be the most appropriate course of action for the IAA to undertake to establish the engagement objectives?

  A. Develop a draft audit plan and create an appropriate scope and resource schedule.

  B. Develop a preliminary audit program and obtain senior management's approval.

  C. Conduct a preliminary assessment of the risks associated with the maintenance contract.

  D. Obtain a copy of the maintenance contract and review the contract for pricing discrepancies.

  Correct Answer: C

• Question 288:

  According to the Standards, which of the following best describes what must be agreed upon to establish an understanding with clients prior to starting a consulting engagement?

  A. The engagement objectives, access to clients records, and expectations.

  B. The engagement objectives, scope, and time frame to complete the engagement.

  C. The engagement scope, opportunities for making significant improvements, and client expectations.

  D. The engagement objectives, scope, respective responsibilities, and other client expectations.

  Correct Answer: D

• Question 289:

  In performance auditing, which of the following must first be determined by the internal auditor?

  A. Which key performance indicators are in use.

  B. Management's objectives for the process.

  C. Whether management controls are appropriate.

  D. Determination that appropriate benchmarks are in place.

  Correct Answer: B

• Question 290:

  Which of the following statements is true?

  A. Consulting engagements provide the internal audit activity with flexibility to add value and do not need to be included in the long-range audit plan.

  B. The internal audit activity's plan of engagments must be based on a formal quantitative risk assessment.

  C. The chief audit executive should consider changes to the long-range audit plan based on the requests of business unit managers.

  D. A risk assessment on which to base the internal audit activity's long-range plan must be undertaken at least once every three years.

  Correct Answer: C