Practice Free IIA-CIA-Part2 Exam Online Questions
Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?
- A . The amount of experience the auditors have conducting audits in the specific area of the organization.
- B . The availability of the auditors in relation to the availability of key client staff.
- C . Whether the budgeted hours are sufficient to complete the audit within the current scope.
- D . Whether outside resources will be needed, and their availability.
Which of the following is the primary purpose of implementing a program whereby employees are rotated from other parts of the organization into the internal audit activity?
- A . It provides the internal audit activity with more resourcing options to meet the audit plan
- B . It offers internal auditors the opportunity to learn more about other work areas.
- C . It gives nonauditors a better understanding of the control environment.
- D . It provides an opportunity for the recruitment of employees as permanent internal auditors
Which of the following is the primary purpose of implementing a program whereby employees are rotated from other parts of the organization into the internal audit activity?
- A . It provides the internal audit activity with more resourcing options to meet the audit plan
- B . It offers internal auditors the opportunity to learn more about other work areas.
- C . It gives nonauditors a better understanding of the control environment.
- D . It provides an opportunity for the recruitment of employees as permanent internal auditors
The internal auditor and her supervisor are in dispute about a risk that was not tested during an audit of the procurement function.
Which of the following tools would best support the auditor’s decision not to test the risk?
- A . A spaghetti map
- B . A heat map.
- C . A process map
- D . An assurance map
The internal auditor and her supervisor are in dispute about a risk that was not tested during an audit of the procurement function.
Which of the following tools would best support the auditor’s decision not to test the risk?
- A . A spaghetti map
- B . A heat map.
- C . A process map
- D . An assurance map
During audit engagement planning, an internal auditor is determining the best approach for leveraging computer-assisted audit techniques (CAATs).
Which of the following approaches maximizes the use of CAATs and why?
- A . Tracing, because it would enable the auditor to verify quickly that the record counts were properly included in the compilation.
- B . Inspection, because it would enable the auditor to verify how management enters the data into the application for processing.
- C . Testing data, because it would enable the auditor to ensure that the application processes the transaction as described by management.
- D . Reperformance, because it enables the auditor to verify that the application performed the calculation correctly.
D
Explanation:
Reperformance is a CAATs approach that involves independently executing the same procedures as the original process to verify the accuracy of the application’s calculations. This approach maximizes the use of CAATs because it directly tests the functionality and reliability of the system by ensuring that the system processes transactions and calculations correctly, as intended by management. IIA
Reference: IIA Standard 1220: Due Professional Care suggests that internal auditors should apply appropriate techniques, such as CAATs, to obtain sufficient evidence. Reperformance as a CAATs method is particularly effective in verifying the integrity of system calculations.
The Practice Guide on Using CAATs highlights that reperformance is one of the most powerful techniques for validating that a system operates as intended and that transactions are processed correctly.
Which of the following would present the most critical external risk to an organization?
- A . The organization experiences a merger, and the management team is reorganized and redistributed globally
- B . The organization launches a product into new global markets
- C . After minimal testing, the organization implements a new system to replace a legacy system
- D . Regulators announce broad legislative reforms applicable to the industry within which the organization operates
During a fraud interview, it was discovered that unquestioned authority enabled a vice president to steal funds from the organization.
Which of the following best describes this condition?
- A . Scheme.
- B . Opportunity.
- C . Rationalization.
- D . Pressure.
During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation.
According to IIA guidance, which of the following would be the most appropriate next step?
- A . The audit supervisor should include the new contracts in the finding for the final audit report.
- B . The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.
- C . The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.
- D . The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.
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.