Practice Free IIA-CIA-Part2 Exam Online Questions
Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?
- A . To gain access to a wider variety of skills, competencies and best practices.
- B . To complement existing expertise with a required skill and competency for a particular audit engagement.
- C . To focus on and strengthen core audit competencies.
- D . To provide the organization with appropriate contingency planning for the internal audit function.
While planning an audit engagement of a procurement card activity.
which of the following actions should an internal auditor take to identify relevant risks and controls?
- A . Compare card transaction types against procurement card policy guidelines.
- B . Develop the scope and objectives of the engagement
- C . Determine how many cardholders exceeded their daily limit.
- D . Meet with the procurement card program administrator
An internal audit intends to create a risk and control matrix to better understand the organization’s complex manufacturing process.
With which of the following approaches would the auditor most likely start?
- A . Assess management responses to key risk exposures
- B . Analyze the costs and benefits of key controls
- C . Evaluate the design adequacy of known controls
- D . Conduct a walk-through of all related activates
What is the purpose of an internal control questionnaire?
- A . To gather information from a sample of people who are geographically dispersed
- B . To assess risks that could prevent an audited area from achieving its objectives.
- C . To evaluate tie level of compliance of remote offices with centrally designed procedures
- D . To perform testing of controls more frequently
An internal auditor is assigned to validate calculations on the organization’s building application As pad of the test the internal auditor is required to use an automated audit tool to simulate transactions for testing.
Which of the following would most appropriately be used for this purpose?
- A . Generalized audit software.
- B . Utility software
- C . integrated test facilities
- D . Audit expert systems
According to IIA guidance, which of the following is true about the supervising internal auditor’s review notes?
• They are discussed with management prior to finalizing the audit.
• They may be discarded after working papers are amended as appropriate.
• They are created by the auditor to support her fieldwork in case of questions.
• They are not required to support observations issued in the audit report.
- A . 1 and 3 only
- B . 1 and 4 only
- C . 2 and 3 only
- D . 2 and 4 only
A list of employees covered by the code of conduct.
- A . 1 and 2
- B . 1 and 3
- C . 2 and 4
- D . 3 and 4
During an audit of suspense accounts the internal auditor found that there were no written policies on how suspense accounts should be treated. The auditor also found that suspense account balances were cleared once per week, not daily.
Which of the following is the most appropriate first response by the auditor?
- A . The auditor should conclude that suspense accounts were not being cleared on a timely basis because they should be cleared daily
- B . The auditor should ask management whether any undocumented policies exist and. if so, determine whether they are adequate
- C . The auditor should conclude that the clearing of suspense accounts was timely and appropriate because weekly clearing is sufficient.
- D . The auditor should rely on his professional judgment and experience to develop criteria for evaluating the existing controls over suspense accounts
An audit observation noted that annual inventory counts of biofuel was not being performed appropriately Fuel yards were not visited and physical amounts of biofuel were not reconciled with accounting data Management of the division understood the issue and promised to resolve the problem.
When should the internal auditor schedule a follow-up review?
- A . As soon as possible, no later than two months after the audit
- B . When convenient for both parties
- C . When management has indicated that the issue has been resolved
- D . Before financial year end
An audit observation noted that annual inventory counts of biofuel was not being performed appropriately Fuel yards were not visited and physical amounts of biofuel were not reconciled with accounting data Management of the division understood the issue and promised to resolve the problem.
When should the internal auditor schedule a follow-up review?
- A . As soon as possible, no later than two months after the audit
- B . When convenient for both parties
- C . When management has indicated that the issue has been resolved
- D . Before financial year end