IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 441:

  Which of the following conclusions would be appropriate for a beginning auditor performing an audit of a payroll department?

  A. Employee taxes have been deducted at the correct rates, and the taxes have been forwarded to the appropriate government agency.

  B. Although there is insufficient segregation of duties, the impact is mitigated by compensating controls.

  C. The payroll computer system should be replaced.

  D. The payroll department staff has the appropriate level of skills.

  Correct Answer: A

• Question 442:

  In response to an accounts receivable confirmation, a customer indicated that the invoice listed on the confirmation letter had been paid two months earlier.

  This may indicate that:

  A. The receivable was selected for confirmation in error.

  B. The customer is a bad credit risk.

  C. The receivable should be written off.

  D. Fraudulent activity has occurred.

  Correct Answer: D

• Question 443:

  In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?

  I. Audit team's knowledge of the audited area.

  II. Usefulness of the audit results.

  III. Quality of management of the internal audit activity.

  IV.

  Clarity of the scope and objectives of the audit engagement.

  A.

  I and II only

  B.

  II and IV only

  C.

  I, II, and IV only

  D.

  I, III, and IV only

  Correct Answer: C

• Question 444:

  After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?

  I. Manager of disbursements.

  II. Controller.

  III. Chief operating officer.

  IV.

  Audit committee members.

  A.

  I only

  B.

  I and II only

  C.

  II and III only

  D.

  II, III, and IV only

  Correct Answer: B

• Question 445:

  Senior management of an organization has requested that the internal audit activity provide ongoing internal control training for all managerial personnel. This is best addressed by:

  A. A formal consulting engagement.

  B. An informal consulting engagement.

  C. A performance assurance engagement.

  D. An operational assurance engagement.

  Correct Answer: A

• Question 446:

  A key to effective benchmarking in a consulting engagement is identifying the issues that can be:

  A. Reviewed by all internal audit staff members.

  B. Shared with all internal audit customers.

  C. Measured and controlled by the engagement client.

  D. Discussed with the board or audit committee.

  Correct Answer: C

• Question 447:

  After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:

  A. Legal counsel.

  B. External auditor.

  C. Audit committee chairperson.

  D. Chief executive officer.

  Correct Answer: A

• Question 448:

  Which of the following potential performance measures should an auditor recommend excluding from a performance scorecard?

  A. Number of employees.

  B. Market share.

  C. Number of customer complaints.

  D. Training dollars per employee.

  Correct Answer: A

• Question 449:

  Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?

  A. Ask questions during the exit interviews and send copies of the documented responses to the clients.

  B. Call engagement clients after the exit interviews and send copies of the documented responses to the clients.

  C. Distribute questionnaires to selected engagement clients shortly before preparing the internal audit annual activity report.

  D. Provide questionnaires to engagement clients at the beginning of each engagement and request that the clients complete and return them after the engagements.

  Correct Answer: D

• Question 450:

  Which of the following would be the least important reason for a company to merge with another company?

  A. To diversify risk.

  B. As a response to new government policy.

  C. To reduce labor costs.

  D. To increase stock prices.

  Correct Answer: D