Practice Free IIA-CIA-Part2 Exam Online Questions
According to the MA guidance, which of the following does the engagement work program test in a review of an organizational process?
- A . Process objectives.
- B . Process risks
- C . Process controls.
- D . Process scope
Which of the following has the greatest effect on the efficiency of an audit?
- A . The complexity of deficiency findings.
- B . The adequacy of preliminary survey information.
- C . The organization and content of workpapers.
- D . The method and amount of supporting detail used for the audit report.
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
- A . Report follow-up activities to senior management.
- B . Implement follow-up procedures to evaluate residual risk.
- C . Determine the costs of implementing the recommendations.
- D . Evaluate the extent of improvements.
The chief audit executive (CAE) should determine whether the internal audit activity has confirmed the status of all of management’s corrective actions Doing so would help the CAE assess which of the following?
- A . Disclosure risk.
- B . Residual risk
- C . Compliance risk
- D . Inherent risk
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
The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan.
Which of the following would be the most appropriate action tor the CAE to take?
- A . Use guest auditors from within the organization, and leverage their experience by assigning them to lead engagements m areas where they previously worked
- B . Outsource some of the audits to the organization s external auditor who is already familiar with the organization
- C . Invite non auditors to join the internal audit activity for a two-year rotational position, and assign them to join audit teams that are reviewing areas where they have no previous management responsibility
- D . Recruit recent college graduates and employ them as audit interns with an aim to offer permanent employment
Which of the following is a true statement regarding the use of flowcharts as an audit tool?
- A . Flowcharts are typically not well suited to support information provided by a risk and control matrix.
- B . Flowcharts are preferred to narratives, as they can provide much greater detail on the design and operation of a process.
- C . Flowcharts are best applied to linear process flows but cannot address all risks related to the process.
- D . Flowcharts describe process steps but cannot provide the level of detail needed to adequately assess the design of the process.
C
Explanation:
Flowcharts are particularly effective for visualizing linear processes, as they clearly depict the sequence of steps, decision points, and flow of information. However, while they provide a useful representation of the process, they may not capture all risks, particularly those that are non-linear or involve complex interactions that are not easily represented in a flowchart format. IIA
Reference: IIA Standard 2320: Analysis and Evaluation requires internal auditors to evaluate the design and implementation of processes. Flowcharts can help auditors visualize and understand process flows but may need to be supplemented with other tools (e.g., risk and control matrices) to capture the full range of risks.
The Practice Guide on Process Mapping indicates that flowcharts are valuable for mapping linear processes but should be used in conjunction with other tools when evaluating complex or non-linear processes.
Which of the following is most likely to be judged as a significant residual risk that would exceed the organization’s acceptable risk level?
- A . Any risk involving organizational expansion into a new geographical area with an unstable political environment.
- B . Any risk involving investments into bitcoin and suspicious derivatives
- C . Any risk that can cause material or financial loss
- D . Any risk that could cause injuries or pollute the environment
Which of the following is most likely to be judged as a significant residual risk that would exceed the organization’s acceptable risk level?
- A . Any risk involving organizational expansion into a new geographical area with an unstable political environment.
- B . Any risk involving investments into bitcoin and suspicious derivatives
- C . Any risk that can cause material or financial loss
- D . Any risk that could cause injuries or pollute the environment
According to IIA guidance, which of re following actions should the internal auditor take immediately after having considered fraud scenarios and identified and prioritized fraud risks?
- A . Determine which controls if any are in place to mitigate the fraud risks
- B . Follow protocol for internal reporting and investigating fraud allegations
- C . Research frauds that nave occurred t similar organizations
- D . Incorporate the fraud risk assessment into the engagement plan