IIA-CIA-Part2 Dumps (V17.03) Are the Current Version with 492 Practice Q&As – You Can Check IIA-CIA-Part2 Free Dumps (Part 1, Q1-Q40) Online

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?

2. 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?

3. 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?

4. A chief audit executive (CAE) reviews the supervision of an internal audit engagement.

Which of the following would most likely assure the CAE that the engagement had adequate supervision?

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

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

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

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

8. When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive?

• During an audit of the hiring process in a law firm, it was discovered that potential employees' credentials were not always confirmed sufficiently. This process remained unchanged at the following audit.

• During an audit of the accounts payable department, auditors calculated that two percent of accounts were paid past due. This condition persisted at a follow up audit.

• During an audit of the vehicle fleet of a rental agency, it was determined that at any given time, eight percent of the vehicles were not operational. During the next audit, this figure had increased.

• During an audit of the cash handling process in a casino, internal audit discovered control deficiencies in the transfer process between the slot machines and the cash counting area. It was corrected immediately.

9. Which of the following statement is consistent with IIA guidance the use of mentoring for internal auditors?

10. According to an internal audit observation, the organization’s rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts into the system.

Which of the following component should be added to this observation?

11. Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?

1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.

2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.

3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.

4. Communicate to senior management a summary report on the status and adequacy of audit resources.

12. An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile.

Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?

13. Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

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

Which analytics procedure would the auditor use?

15. An internal auditor wants to identity potential ghost employees in the organization's payroll system.

The auditor extracts the following data

- Human resources data with employees' names addresses employment conditions and identification codes

- Payroll data

- Logs from entrance systems

With this data, which of the following types of ghost employees will the auditor be able to identify?

16. 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?

17. Which of the following statements about assurance maps is correct?

18. When me internal audit activity does not have sufficient time to complete its usual root cause analysis which c4 the following is most appropriate?

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

20. Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?

21. If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

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

23. 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?

24. What is the primary objective of an engagement supervisor's review of key activities performed during the engagement?

25. Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?

26. What is the best course of action for a chief audit executive if an internal auditor identifies in the early stage of an audit that some employees have inappropriate access to a key system?

27. Which of the following statements generally true regarding audit engagement planning?

28. An internal auditor is analyzing sates records and is concerned whether a transaction is recorded in the coned period. The accounting manager explains that the external auditor approved the records and produces an email from the external audit team leader.

How should tie internal auditor respond?

29. 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?

30. According to IIA guidance which of the following statements is true regarding the annual audit plan?

31. Which of the following is an appropriate documentation of proper engagement supervision?

32. 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.

33. 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?

34. 'Internal policy prohibits employees from entering into contacts with financial obligations without proper approval.

A project manager signed a change to an important service agreement without obtaining the proper approval As a result the organization is receiving $5,000 per month less for its services.’’

Which of the following should be added to the observation?

35. Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process.

Which of the following is true regarding the validity of the observation closure?

36. An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO.

Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization's health and safety program?

37. 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?

38. According to the IIA guidance, which of the following foes the engagement work test in a review in a review of an organizational process?

39. 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?

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