An internal auditor is asked to review a recently completed renovation to a retail outlet. Which of the following would provide the most reliable evidence that the completed work conformed to the plan?
A. An interview with the employee who performed the work.
B. An analysis of purchasing and receiving documentation.
C. Existence of a signed completion document accepting the work.
D. A physical inspection of the retail outlet.
The internal audit manager has been delegated the task of preparing the annual internal audit plan for the
forthcoming fiscal year. All engagements should be appropriately categorized and presented to the chief
audit executive for review.
Which of the following would most likely be classified as a consulting engagement?
A. Evaluating procurement department process effectiveness.
B. Helping in the design of the risk management program.
C. Assessing financial reporting control adequacy.
D. Reviewing environmental, social, and governance reporting compliance.
Which of the following statements about assurance maps is correct?
A. An assurance map is used by the chief audit executive to coordinate assurance activities with other internal and external assurance providers.
B. An assurance map is a picture of all assurance engagements performed by the internal audit activity across the organization.
C. An assurance map is used by the engagement supervisor to coordinate the roles of various internal audit team members assigned to assurance engagements.
D. An assurance map lists the procedures and testing activities performed by an internal audit team during an assurance engagement.
In which of the following situations would an internal control questionnaire best suit the internal auditor's purpose?
A. The auditor wants to receive mid-level management insight on how to improve hiring practices.
B. The auditor wants to obtain information on whether adherence to approval matrices is actually taking place in different maintenance units.
C. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures.
D. The auditor wants to assess whether different subsidiaries apply centrally established procurement rules in the same manner.
An internal auditor was reviewing the procurement department's tender documentation for completeness. He documented all discrepancies, but the procurement manager disagreed with his findings. Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have prevented this situation?
A. The auditor should have ensured the preservation of audit evidence by taking screenshots or extracting tender documents.
B. The auditor should have extracted a list of logs and identified any actions that were executed in the database during the audit.
C. The auditor should have instructed procurement workers that changes to the database during the course of the audit were strictly forbidden.
D. The internal auditor should have created a more thorough work program, which would address audit criteria and potential causes in more detail.
Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process. Which of the following is true regarding the validity of the observation closure?
A. Valid closure requires evidence that ensures the corrected process will function as expected in the future.
B. Valid closure requires the client to address not only the condition, but also the cause of the condition.
C. Valid closure of an observation ensures it will be included in the final engagement report.
D. Valid closure requires assurance from management that the original problem will not recur in the future.
According to IIA guidance, which of the following factors should an internal auditor consider when assessing the likelihood of fraud risk?
A. The effect on the organization's reputation.
B. Any potential damage to the organization's relationship with customers.
C. Past fraud allegations and actual occurrences.
D. The potential and realized financial impacts.
The internal audit activity has adopted the balanced scorecard approach to assess its performance. According to IIA guidance, which of the following is a key performance indicator relevant to the audit client?
A. Percentage of recommendations implemented by corrective action date.
B. Staff experience.
C. Percentage of planned audits completed.
D. Conformance with the International Professional Practices Framework.
An organization is expanding into a new line of business, selling natural gas. The internal auditor is planning an engagement and wants to obtain a general understanding of the natural gas market, the market share that the organization wants to win, and the competitive advantage that the organization may have. Which of the following would be the best source of such information?
A. Interview responsible managers and read strategic documents.
B. Conduct internet searches on gas sales and analyze market players.
C. Review gas clients' portfolio and compile statistics on sales margins.
D. Analyze the organization's revenues and calculate the proportion of gas.
An internal auditor collected several employee testimonials. Which of the following is the best action for the internal auditor to take before drawing a conclusion?
A. Ensure the testimonials are well documented.
B. Substantiate the testimonials with physical or documentary evidence.
C. Corroborate testimonials with the results from other soft control techniques.
D. Review the testimonials with the interviewed employees.
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