IIA-CIA-Part2 Exam Dumps, IIA-CIA-Part2 Practice Test Questions
PDF (New 2023) Actual IIA IIA-CIA-Part2 Exam Questions
IIA-CIA-Part2 exam covers a wide range of topics related to internal auditing, including internal control and risk management, fraud detection and prevention, governance and ethics, and communication skills. IIA-CIA-Part2 exam consists of 100 multiple-choice questions, which must be completed within 2.5 hours. To pass the exam, candidates must achieve a minimum score of 600 out of a possible 800 points.
NEW QUESTION # 161
Persuasive evidence indicates that a member of senior management has been involved in insider trading that would be considered fraudulent. However, the evidence was encountered during an operational audit and is not considered relevant to the audit. Which of the following is the most appropriate action for the chief audit executive to take?
- A. Discontinue audit work associated with the insider trading since it is not relevant to the existing audit.
- B. Conduct sufficient audit work to conclude whether fraudulent activity has taken place, then report the findings to the chairperson of the audit committee and to government officials if appropriate action is not taken.
- C. Report the evidence to the chairperson of the audit committee and recommend an investigation.
- D. Report the evidence to external legal counsel for investigation. Report the legal counsel findings to management.
Answer: C
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION # 162
An organization has acquired a new line of business. None of the organization's internal auditors have the required expertise to perform an internal audit of the new business line; therefore, the chief audit executive (CAE) has contracted the services of an external audit firm to perform the engagement. The CAE has assigned a member of the internal audit team to assist the external team with the engagement. According to the Standards, which of the following statements is true regarding supervision of the engagement?
- A. The CAE is not responsible for the quality of an audit performed by an external firm.
- B. The CAE should not assign an inexperienced staff member to assist with the engagement.
- C. The external firm's auditor in charge must defer to the judgment of the CAE for any disputes.
- D. The CAE may rely upon the external firm's auditor in charge to supervise the engagement.
Answer: C
NEW QUESTION # 163
An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?
- A. Compare the planned outputs with the actual outputs.
- B. Review the levels of scrap and rework.
- C. Ascertain the costs of materials purchased.
- D. Evaluate the plant's ability to meet production quotas.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 164
After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis.
Which of the following is most likely to be a disadvantage of this outsourcing decision?
- A. Familiarity.
- B. Independence.
- C. Cost.
- D. Flexibility.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 165
According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?
- A. The exit conference provides only anticipated results for inclusion in the final audit communication.
- B. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
- C. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
- D. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.
Answer: A
NEW QUESTION # 166
A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?
- A. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
- B. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
- C. Both total sales and cost of ingredients used are less than expected.
- D. Both total sales and cost of ingredients used are greater than expected.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 167
According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management's response to audit recommendations?
- A. Oversee the corrective actions undertaken by management, and establish timelines for corrective action by management.
- B. Evaluate and verify management's response, and determine the need and scope for additional work.
- C. Evaluate and verify management's response, and establish timelines for corrective action by management.
- D. Oversee the corrective actions undertaken by management, and determine the need and scope for additional work.
Answer: B
NEW QUESTION # 168
Which of the following would most likely include recommendations for process improvements?
----
Due diligence engagement. Forensic investigation. Internal audit engagement. Consulting engagement.
- A. 1, 3, and 4 only.
- B. 2, 3, and 4 only.
- C. 1, 2, and 4 only.
- D. 1, 2, and 3 only.
Answer: B
NEW QUESTION # 169
Which of the following factors is least essential to a successful control self-assessment workshop?
- A. Group dynamics.
- B. Voting technology.
- C. Facilitation training.
- D. Prior planning.
Answer: B
NEW QUESTION # 170
Which of the following examples of audit evidence is the most persuasive?
- A. Canceled checks written by the treasurer and returned from a bank.
- B. Vendor invoices filed by the accounting department.
- C. Real estate deeds, which were properly recorded with a government agency.
- D. Time cards for employees, which are stored by a manager.
Answer: C
NEW QUESTION # 171
A bank is developing an integrated customer information system. The type of audit involvement that would most likely help avoid implementation of a system that does not cover all types of accounts would be:
- A. A design review.
- B. An application control review.
- C. A source code review.
- D. An access control review.
Answer: A
NEW QUESTION # 172
During an audit of a major contract, an auditor finds that actual hours and dollars billed are consistently at or near budgeted amounts. This condition is a red flag for which of the following procurement fraud schemes?
- A. Defective pricing.
- B. Bid rotation.
- C. Fictitious vendor.
- D. Cost mischarging.
Answer: D
NEW QUESTION # 173
After concluding a preliminary assessment, the engagement supervisor prepared a draft work program According to HA guidance which of the following would be tested by this program?
- A. The process risks
- B. The process objectives.
- C. The process controls
- D. The process scope
Answer: C
NEW QUESTION # 174
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?
- A. Check tampering by an employee.
- B. Submission of fraudulent expense reports.
- C. Poor controls in the invoice approval processes.
- D. An ineffective customer service department.
Answer: A
NEW QUESTION # 175
According to the Standards, which of the following best describes the responsibility of the chief audit executive (CAE) for approving the final engagement report?
* The CAE is responsible for obtaining management approval before issuing the final report.
* The CAE has overall responsibility for the report but can delegate the review and approval of the report.
* The CAE is responsible for obtaining senior management's approval before releasing the final report.
* The CAE is responsible for approving to whom and how the final report will be disseminated.
- A. 1 and 3 only
- B. 1 and 4 only
- C. 2 and 3 only
- D. 2 and 4 only
Answer: D
NEW QUESTION # 176
An internal auditor determines that certain information from the engagement results is not appropriate for disclosure to all report recipients because it is privileged. In this situation, which of the following actions would be most appropriate?
- A. Exclude the results from the report and verbally report the conditions to senior management and the board.
- B. Disclose the information in a separate report.
- C. Distribute the information in a confidential report to the board only.
- D. Distribute the reports through the use of blind copies.
Answer: B
NEW QUESTION # 177
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I.Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II.
Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
- A. I and III only.
Verify that the change orders were properly approved by management. - B. I and II only.
- C. III only.
- D. I only.
Answer: B
NEW QUESTION # 178
Five brand managers in a consumer products company met to determine how well certain promotions had performed. The data that they needed to analyze consisted of approximately 50 gigabytes of daily point-of- sale (POS) data for each month. The brand managers tried to download the POS data from the mainframe and import it into microcomputer spreadsheets for analysis. Their efforts were unsuccessful, most likely because of:
- A. The complexity of the mainframe data structure and the large volume of data.
- B. Inconsistencies in the mainframe data due to lack of integrity constraints on the data files.
- C. Error-prone transmission links for downloading the data from the mainframe data files.
- D. The difficulty of establishing access privileges for each subset of the mainframe data.
Answer: A
NEW QUESTION # 179
During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend?
I.Implement a test environment to ensure that testing is not performed in the production environment.
II.
Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment.
III.
Eliminate access by developers to the production environment.
- A. I and III only.
- B. I and II only.
- C. III only.
- D. I only.
Answer: A
NEW QUESTION # 180
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IIA-CIA-Part2 exam is a comprehensive test that covers a wide range of topics related to internal auditing. Some of the key areas covered in the exam include risk assessment, internal control, fraud, governance, and ethics. IIA-CIA-Part2 exam is structured in a way that tests the candidate's ability to apply their knowledge and skills in real-world situations, which is essential for a successful career in internal auditing.
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