IIA-CIA-Part2 Dumps (V18.03) Are Available to Prepare for Your Internal Audit Engagement Exam: Practice with IIA-CIA-Part2 Free Dumps (Part 2, Q41-Q80) First

1. Which of the following statements regarding the risk management process' support of the internal audit activity is true?

2. Upon concluding the engagement fieldwork an internal auditor discusses the audit findings with operational management.

There is a greater likelihood that the auditor will obtain a responsive action plan from management when both parties agree on which of the following attributes of the audit finding?

3. During a consulting engagement an internal auditor wants to determine whether all principal stakeholders are involved in a project.

Which tool should the auditor use?

4. The board of directors expressed concerns about potential external risks that could impact the organization s ability to meet its annual objectives and goals The board requested consulting services from the internal audit activity to gain insight regarding the external risks.

Which of the following engagement objectives would be appropriate to fulfill this request?

5. An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments.

To follow up, which of the following is the most appropriate action for the internal auditor to take?

6. A chief audit executive (CAE) is trying to balance the internal audit activity's needs for technical audit skills budget efficiency and staff development opportunities.

Which of the following would best assist the CAE in achieving this balance1?

7. An internal auditor tested whether purchase orders were supported by appropriately approved purchase requisitions She sampled a population of purchase documents and identified instances where purchase requisitions were missing However, she did not notice that n some cases purchase requisitions were approved by an unauthorized person.

Which of the following risks most appropriately describes this situation?

8. An internal auditor wants to compare performance information from one quarter to another.

Which analytics procedure would the auditor use?

9. A corporate merger decision prompts the chief audit executive (CAE) lo propose interim changes to the existing annual audit plan to account for emerging risks.

Which of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan''

10. An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls.

Which of the following is the most appropriate course of action for the internal audit team leader?

11. Which of the following should management action plans include at a minimum?

12. After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted.

Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?

13. At a construction company, an internal auditor is planning an audit of the company's process for designing and building grid connections.

The process involves customers making payments m three parts

• The first payment of 10% after approval of the customer s application

• The second payment of 70% prior to construction

• The third payment of 20% after construction is complete

Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?

14. According to IIA guidance, which of the following activities is most likely to enhance stakeholders' perception of the value the internal audit activity (IAA) adds to the organization?

1. The IAA uses computer-assisted audit techniques and IT applications.

2. The IAA uses a consistent risk-based approach in both its planning and engagement execution.

3. The IAA demonstrates the ability to build strong and constructive relationships with audit clients.

4. The IAA frequently is involved in various project teams and task forces in an advisory capacity.

15. During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process.

Which of the following responses would be most effective to mitigate this risk?

16. A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours.

Which of the following factors could cause this trend?

17. A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report.

According to IIA guidance, which of the following opinions would receive the lowest review priority?

1. Graded positive opinion.

2. Negative assurance opinion.

3. Limited assurance opinion.

4. Third-party opinion.

18. 1.An internal auditor accessed accounts payable records and extracted data related to fuel purchased tor the organization's vehicles As a first step, she sorted the data by vehicle and used spreadsheet functions to identify all instances of refueling on the same or sequential dates She then performed other tests.

Based on the auditor's actions which of the following is most likely the objective of this engagement1?

19. During follow-up, the chief audit executive (CAE) is having a discussion with management about the internal audit team's recommendations related to a significant issue Management accepted the issue but took no remedial action.

What is the next step for the CAE?

20. Which of the following items, included in the preliminary audit communication would be most useful for management to formulate action plans in response to audit recommendations?

21. When presenting an observation m writing which or the Mowing is usually true regarding the level of detail provided?

1. The description of the observation in the final audit report contains more detail then the description m the engagement workpapers

2. The description of the observation m the engagement workpapers contains more detail than the descriptor n a preliminary observation document

3. A preliminary observation document contains more detail than tie observation description in the final audit report

4. A preliminary observation document contains more detail than tie observation description in the engagement workpapers

22. An audit observation states the following:

"Despite the rules of the organization there is no approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17 showed clients with a poor credit history"

Which of the following components are missing in the observation?

23. In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?

24. While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated.

Which of the following actions should the auditor take?

1. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.

2. Evaluate the adequacy and effectiveness of the corrective action proposed by management.

3. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.

4. Submit management's plan of action to the external auditors for additional review.

25. A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?

1. The client manager and her superior.

2. Anyone who may object to the report’s validity.

3. Anyone required to take action.

4. The same individuals who receive the final report.

26. An internal auditor is examining the organization's internal control processes.

Which of the following would the auditor do to test the reliability of a customer database1?

27. Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?

28. Which of the following manual audit approaches describes testing the validity of a document by following it backward to a previously prepared record?

29. Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?

30. Acceding to MA guidance, when of the Mowing strategies would like provide the most assurance to the chief audit executive (CAE) that the internal audit activity's recommendations are being acted upon?

31. Which of the following should be included in a privacy audit engagement?

1. Assess the appropriateness of the information gathered.

2. Review the methods used to collect information.

3. Consider whether the information collected is in compliance with applicable laws.

4. Determine how the information is stored.

32. According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

33. Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate.

When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?

1. The hedge documentation designating the hedge.

2. The spot exchange rate on the transaction date.

3. The terms of the forward contract.

4. The amount of fuel purchased.

34. Which of The following best describes a risk that is deemed "unacceptable" to the organization?

35. When addressing the excessive overtime being paid lo employees in an organization's customer service call center, which of the following would be most relevant for the internal auditor to use?

1 Confirmation.

2. Trend analysis.

3 External benchmarking

4. Internal benchmarking

36. Which of the following is the best option for the chief audit executive to consider for effective coordination of assurance coverage?

37. Which of the following statements is false regarding audit criteria?

38. Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

39. An internal auditor collected several employee testimonials.

Which of the following is the best action for the internal auditor to take before drawing a conclusion?

40. According to IIA guidance which of the following statements is true regarding heat maps?