Free IIA-CIA-Part2 Braindumps Download Updated on Dec 18, 2021 with 600 Questions
IIA IIA-CIA-Part2 Exam Practice Test Questions
NEW QUESTION 206
Production managers for a manufacturing company are authorized to prepare emergency purchase orders for raw materials. These manually prepared orders do not go through the purchasing department and do not require a receiving report. The managers forward the invoice and purchase order to the accounting department for payment. Which of the following internal controls would efficiently prevent abuse of this system?
- A. Forbid the use of emergency purchase orders.
- B. Institute a company policy requiring rotation of orders among several suppliers.
- C. Review the level of safety stock.
- D. Require a manual receiving report from the warehouse prior to payment.
Answer: D
NEW QUESTION 207
Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?
1. Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.
2. Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.
3. Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.
4. Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.
- A. 2 and 3 only
- B. 1 and 2 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: B
Explanation:
Section: Volume E
NEW QUESTION 208
The chief audit executive's responsibility regarding control processes includes:
- A. Maintaining the organization's governance processes.
- B. Ensuring that the internal audit activity assesses all control processes annually.
- C. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
- D. Overseeing the establishment of internal control processes.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION 209
The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:
- A. Determining if information systems provide complete information.
- B. Determining if controls over record keeping and reporting are adequate and effective.
- C. Reviewing data provided by information systems to test compliance with external requirements.
- D. Determining if information systems provide management with timely information.
Answer: B
NEW QUESTION 210
A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?
- A. 48 percent.
- B. 60 percent.
- C. 30 percent.
- D. 52 percent.
Answer: D
NEW QUESTION 211
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. Both total sales and cost of ingredients used are less than expected.
- B. Both total sales and cost of ingredients used are greater than expected.
- C. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
- D. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
Answer: C
NEW QUESTION 212
As part of a preliminary survey of the purchasing function, an internal auditor reads the department's policies and procedures manual and concludes that the manual describes the processing steps clearly and contains an appropriate internal control design. The next engagement objective is to evaluate the operating effectiveness of internal controls. Which procedure would fulfill this objective most effectively?
- A. Perform a design test.
- B. Perform a compliance test.
- C. Perform a systems test.
- D. Perform an efficiency test.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION 213
When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?
1.Add value.
2.Improve operations.
3.Provide assurance that the internal audit activity conforms with the Standards.
4.Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.
- A. 1 and 3 only
- B. 1 only
- C. 1, 2, 3, and 4
- D. 1 and 2 only
Answer: C
NEW QUESTION 214
Which of the following are key characteristics of enterprise risk management?
1.It considers risk in the formulation of strategy.
2.It applies risk management in some units of an entity.
3.It takes a portfolio view of risks throughout the enterprise.
4.It restricts the organization's ability to seize opportunities inherent in future events.
- A. 1 and 3 only
- B. 2 and 3 only
- C. 2 and 4 only
- D. 1 and 4 only
Answer: A
NEW QUESTION 215
The best method for assessing the relative importance of risk factors is to:
- A. Assign weights to the factors based on the comparative impact.
- B. List the risk factors in a priority order.
- C. Use data from an independent source.
- D. Change the rating of the factors from a 1-3 scale to a 1-5 scale.
Answer: A
NEW QUESTION 216
Which of the following is a preventive control strategy against fraud?
- A. Performing background checks on employees.
- B. Performing a surprise audit.
- C. Maintaining a whistleblower hotline.
- D. Implementing control self-assessment.
Answer: A
NEW QUESTION 217
According to the Standards, which of the following would least likely be considered a red flag when evaluating the risk for fraud?
- A. It is alleged that an employee is receiving vendor kickbacks.
- B. Cash receipts appear to be lower than expected from an employee's cash drawer.
- C. Health benefits are detected to be claimed for a deceased employee.
- D. An employee did not approve an internal report detailing expenses for the month.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 218
Which of the following must an auditor establish in order to demonstrate that fraud has occurred?
- A. Existence of an internal control deficiency.
- B. Evidence of collusion.
- C. Monetary damage to the victim.
- D. The suspect's intent.
Answer: D
NEW QUESTION 219
In a review of an electronic data interchange application using a third-party service provider, the auditor should:
I. Ensure encryption keys meet International Organization for Standardization (ISO) standards.
II. Determine whether an independent review of the service provider's operation has been conducted.
III. Verify that only public-switched data networks are used by the service provider.
IV.
Verify that the service provider's contracts include necessary clauses, such as the right to audit.
- A. II and IV only
- B. I and II only
- C. II and III only
- D. I and IV only
Answer: A
NEW QUESTION 220
During an audit, an employee, who does not want to be identified, offers to provide information that would be damaging to the organization and may concern illegal activities. Which of the following actions by the auditor would not be consistent with the IIA Code of Ethics and Standards?
- A. Promising to maintain the employee's anonymity and listening to the information.
- B. Informing the employee of other methods of communicating this type of information.
- C. Informing the employee that an attempt will be made to keep the source of the information confidential while looking into the matter further.
- D. Suggesting that the employee consider talking to legal counsel.
Answer: A
NEW QUESTION 221
Which of the following would constitute a violation of the IIA Code of Ethics?
- A. An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.
- B. An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.
- C. An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.
- D. An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.
Answer: B
NEW QUESTION 222
Which of the following is the most important concept to be included in a consulting engagement agreement?
- A. Define the duties and responsibilities needed from management to perform the engagement.
- B. Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.
- C. Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.
- D. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 223
An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time. The application controls being verified by this analysis are:
- A. Edit and validation controls.
- B. Controls over update access to the database.
- C. Programmed balancing controls.
- D. Rejected and suspense item controls.
Answer: A
NEW QUESTION 224
An organization's policies allow buyers to authorize expenditures up to $50,000 without any other approval.
Which of the following audit procedures would be most effective in determining if fraud in the form of payments to fictitious companies has occurred?
- A. Use generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.
- B. Use generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.
- C. Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.
- D. Develop a snapshot technique to trace all transactions by suspected buyers.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION 225
When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:
- A. Use generalizations.
- B. Use objective, impartial language.
- C. Notify the internal auditor of the upcoming appraisal several days in advance.
- D. Document the appraisal.
Answer: A
NEW QUESTION 226
According to the International Professional Practices Framework, which of the following is not an objective of the exit conference?
- A. Receive client feedback and clarification.
- B. Resolve disagreements.
- C. Plan future engagements.
- D. Review audit recommendations.
Answer: C
NEW QUESTION 227
An organization has a mature control environment but limited internal audit resources Given this scenario, on which of the following should the internal auditors focus their testing?
- A. Preventive compensating controls
- B. Detective compensating controls
- C. Preventive key controls
- D. Detective Key controls
Answer: C
NEW QUESTION 228
......
IIA IIA-CIA-Part2 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
| Topic 6 |
|
| Topic 7 |
|
| Topic 8 |
|
| Topic 9 |
|
Updated Verified IIA-CIA-Part2 dumps Q&As - Pass Guarantee or Full Refund: https://www.testbraindump.com/IIA-CIA-Part2-exam-prep.html
Updated Certification Exam IIA-CIA-Part2 Dumps - Practice Test Questions: https://drive.google.com/open?id=18X8oEnSw9CH2_IpqkHQ7t2RqU9eDYtut
