IIA-CIA-Part2 Dumps (V17.03) Can Be Checked By Reading Demo Questions: IIA-CIA-Part2 Free Dumps (Part 2, Q41-Q80) Online

1. As a result of server managements assumption of risk there is residual risk that exceeds me organisation's risk appetite.

Which of the following actions would be most appropriate for the chief audit executive to take?

2. An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process.

According to IIA guidance, which of the following roles should the CAE not undertake?

3. 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.

4. Which of the following should be the focus of the effect section of the preliminary observations document?

5. An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation.

Which of the following is the most appropriate conclusion for the auditor to include in the audit report?

6. 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?

7. Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

8. According to IIA guidance, which of the following reflects a characteristic of sufficient and reliable information?

9. An internal auditor is conducting a preliminary survey of the investments area, and sends an internal control questionnaire to the management of the function. (An extract of the survey is provided below).

1. Are there any restrictions for any company's investments?

2. Are there any written policies and procedures that document the flow of investment processing?

3. Are investment purchases recorded in the general ledger on the date traded?

4. Is the documentation easily accessible to an persons who need in to perform their job?

Which of the following is a drawback of testing methods like this?

10. A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products Recently quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards.

Which type of engagement would be most appropriate to assess the root causes of the quality issues?

11. 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?

12. An organization recently acquired a subsidiary in a new industry, and management asked the chief audit executive (CAE) to perform a comprehensive audit of the subsidiary prior to recommencing operations. The CAE is unsure her team has the necessary skills and knowledge to accept the engagement According to IIAguidance, which of the following responses by the CAE would be most appropriate?

13. An internal auditor conducted interviews with several employees, documented the interviews analyzed the summaries, and drew a number of conclusions.

What sort of audit evidence has the internal auditor primarily obtained?

14. 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?

15. 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

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

17. Which of the following statements concerning workpapers is the most accurate?

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

19. An internal auditor is asked to review a recently completed renovation to a retail outlet.

Which of the following would provide the most reliable evidence that the completed work conformed to the plan?

20. 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?

21. According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

22. An internal auditor suspects that employee turnover is unusually high at the organization's primary manufacturing plant.

To investigate this potential issue which of the following analytical approaches is the auditor likely to use?

23. Which of the following should be described in the recognition element of a typical internal audit repot?

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

25. 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?

26. 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?

27. The audit manager asked the internal auditor to perform additional testing because several irregularities were found in the financial information.

Which of the following would be the most appropriate analytical review for the auditor to perform?

28. An organization's finance manager plans to implement a state-of-the-art management system to better manage the organization's receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system.

How would the CAE proceed to determine the objectives of this engagement?

29. The final internal audit report should be distributed to which of the following individuals?

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

31. An internal auditor is preparing for an auditor of newly implemented software that is used by 3,000 employees in South America and Europe.

What would be the best way for the auditor to gather relevant feedback?

32. During the fieldwork phase of an assurance engagement, the internal auditor decides that she wants to adjust the audit work program.

Which of the following is the most appropriate next step for the auditor to take?

33. 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?

34. Which of the following is the most important concept to be included in a consulting engagement agreement?

35. 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?

36. 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.

37. 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?

38. Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization's risk management program?

39. Which of the following has the greatest effect on the efficiency of an audit?

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