Practice Free IIA-CIA-Part2 Exam Online Questions
Which of the following statements is true regarding engagement planning?
- A . The engagement objectives are the boundaries for the engagement, which outline what will be included in the review
- B . The risk-based objectives of the engagement can be determined once the scope of the engagement has been formed
- C . For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined
- D . For an assurance engagement, once the scope is established and testing has begun, the scope cannot be modified.
In which of the following ways can the internal audit activity new engagement opportunities?
- A . By defining activities by business processes.
- B . By looking external factors such as product complaints.
- C . By looking at activities by businesses cost centers.
- D . By defining activities by the organization chart.
What is the primary purpose of issuing a preliminary communication to management of the area under review?
- A . To build good relations with management
- B . To help management develop more responsive and timely action plans
- C . To formally report medium- and high-risk observations in writing
- D . To improve the internal audit key performance indicators
According to IIA guidance which of the following statements is true regarding the annual audit plan?
- A . The annual audit plan should only be adjusted in response to problems with resourcing, scope, and data availability.
- B . The chief audit executive (CAE) may incorporate risk information, including risk appetite levels from management for the audit plan at her discretion.
- C . In an immature risk management environment it is preferable for the CAE to rely solely on her judgment regarding risk identification and assessment to develop the audit plan.
- D . The CAE may make adjustments to the annual audit plan as needed without senior management or board approval.
When me internal audit activity does not have sufficient time to complete its usual root cause analysis which c4 the following is most appropriate?
- A . The chief audit executive may recommend that management conduct further work to identify the root cause and address the issue
- B . Internal auditors should finish the engagement without conducting the root cause analysis and draft the audit report, though the report would not be considered complete until the analysis is concluded
- C . internal auditors must adjust their future engagement schedule to ensure that the root cause analysis is always performed before the engagement is concluded
- D . Internal auditors should Instead perform a Pareto rule analysis
Which of the following statements generally true regarding audit engagement planning?
- A . The best source tor detailed process information is senior management
- B . Audit objectives should be general and do not change.
- C . Computer-assisted audit techniques are typically not useful during engagement planning
- D . Internal auditors should prepare a dented audit program for testing controls
An internal auditor is planning an engagement at a financial institution. Toe engagement objective is to identify whether loans were granted in accordance with the organization’s policies.
When of the following approaches would provide the auditor with the best information?
- A . Randomly select 30 cases of loans and verify whether they were repaid timely and in full
- B . Randomly select 30 cases of loans and validate them against applicable underwriting guidelines
- C . Randomly select 30 employees to complete a survey regarding whether policies and standards are followed
- D . Randomly select several months obtain ageing reports for these months and compare them with the poor year
Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?
- A . Sampling risk.
- B . Audit risk.
- C . Residual risk.
- D . Inherent risk
The head of customer service asked the chief audit executive (CAE) whether eternal auditors could assist her staff with conducting a risk self-assessment in the customer service department. The CAE promised to meet with customer service managers analyze relevant business processes, and come up with a proposal.
Who is most likely to be the final approver of the engagement objectives and scope?
- A . Senior management of the organization
- B . The chief audit executive
- C . The head of customer service
- D . The board of directors
The head of customer service asked the chief audit executive (CAE) whether eternal auditors could assist her staff with conducting a risk self-assessment in the customer service department. The CAE promised to meet with customer service managers analyze relevant business processes, and come up with a proposal.
Who is most likely to be the final approver of the engagement objectives and scope?
- A . Senior management of the organization
- B . The chief audit executive
- C . The head of customer service
- D . The board of directors