IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 431:

  Which of the following actions by management would reduce an employee's opportunity to commit fraud?

  A. Establishing physical controls over company assets.

  B. Eliminating bonuses tied to sales or other performance goals.

  C. Defining ethical behavior expectations in the company handbook.

  D. Identifying consequences, such as termination, for fraudulent activities.

  Correct Answer: A

• Question 432:

  Which of the following are typical steps in the design of an organization's performance measurement system?

  A. Understand organizational strategy; perform a situational assessment; establish measurement categories; and take actions based upon measurement results.

  B. Categorize performance measures; establish a data collection plan; analyze data; and predict future performance.

  C. Establish a measurement plan; create an organizational strategy linked to those measurements; trend measurement data; and measure data variability.

  D. Perform a situational assessment; generate macro measurements; review measurement data; and change strategy based upon measurement results.

  Correct Answer: A

• Question 433:

  While investigating a compromised Web server, an auditor found that the Web server logs had been deleted. The auditor should recommend that the Web server logs be:

  A. Generated and maintained on a separate secure server.

  B. Accessible by administrative users only

  C. Encrypted to ensure that the logs cannot be deleted.

  D. Restored automatically to the Web server from backup files.

  Correct Answer: A

• Question 434:

  Which of the following best defines an engagement conclusion?

  A. An auditor's determination of the cause of an engagement observation.

  B. An auditor's professional judgment of the situation which was reviewed.

  C. An opinion that must be included in the engagement final communication.

  D. A recommendation for corrective action.

  Correct Answer: B

• Question 435:

  Which of the following types of internal audit consulting engagements is an example of a facilitation service?

  I. Conducting control self-assessment workshops.

  II. Participating on standing committees.

  III. Reviewing regulatory compliance.

  IV.

  Benchmarking.

  V.

  Estimating savings from outsourcing processes.

  A.

  I and IV only

  B.

  I, III, and IV only

  C.

  II, III, and V only

  D.

  I, II, III, IV, and V.

  Correct Answer: A

• Question 436:

  Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

  A. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.

  B. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.

  C. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.

  D. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

  Correct Answer: D

• Question 437:

  A company's cellular phone costs vary significantly by sales representative and by month. Which of the following would be the most appropriate approach for a consulting project concerning this issue?

  A. Control self-assessment involving sales representatives.

  B. Benchmarking with other cellular phone users.

  C. Business process review of cellular phone needs.

  D. Performance measurement and design of the budgeting process.

  Correct Answer: C

• Question 438:

  An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?

  I. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.

  II. Evaluate the adequacy and effectiveness of the corrective action proposed by management.

  III. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.

  IV.

  Do nothing because management has agreed to address the problem.

  A.

  III only

  B.

  IV only

  C.

  I and II only

  D.

  II and III only

  Correct Answer: D

• Question 439:

  During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?

  A. Receive periodic feedback from museum staff regarding the status of the system implementation.

  B. Monitor the system implementation and schedule a follow-up review once the new system is in place.

  C. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.

  D. Schedule an audit of the museum's security systems to determine if theft is a problem.

  Correct Answer: C

• Question 440:

  An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not credit worthy. Which of the following would be least useful in monitoring the disposition of this finding?

  A. Responses from the manager of accounts receivable regarding collection of outstanding receivables.

  B. Periodic updates from the controller regarding the status of corrective actions.

  C. Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.

  D. Updates from the information technology division regarding implementation of a new accounts receivable system.

  Correct Answer: D