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Best Quality IIA IIA-CIA-Part2 Exam Questions
NEW QUESTION 164
A chief audit executive (CAE) of a major retailer has engaged an independent firm of information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists' work only if it is:
- A. Performed under the supervision of the information technology department.
- B. Carried out using standard review procedures for retailers.
- C. Carried out in accordance with the Standards.
- D. Performed in accordance with the terms of the contract.
Answer: C
NEW QUESTION 165
Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?
- A. Generalized audit software.
- B. Integrated test facility.
- C. Spreadsheet analysis.
- D. Tagging and tracing.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION 166
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.
- A. II, III, and IV only
- B. I only
- C. I and II only
- D. II and III only
Answer: C
NEW QUESTION 167
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?
- A. The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.
- B. The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified.
- C. The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.
- D. The CAE should send the final report to operational and senior management and the audit committee.
Answer: B
NEW QUESTION 168
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
- A. Implement follow-up procedures to evaluate residual risk.
- B. Determine the costs of implementing the recommendations.
- C. Report follow-up activities to senior management.
- D. Evaluate the extent of improvements.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION 169
Which characteristic of risk assessment makes it a useful tool for audit planning?
- A. It provides a process for identifying and analyzing potentially adverse effects.
- B. It ranks the severity of potentially adverse effects on the organization.
- C. It evaluates the probability that an event or action may adversely affect the organization.
- D. It provides a list of auditable activities in the organization.
Answer: A
NEW QUESTION 170
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I.Manager of disbursements.
II.
Controller.
III.
Chief operating officer.
IV.
Audit committee members.
- A. II and III only.
- B. I only.
- C. I and II only.
- D. II, III, and IV only.
Answer: C
NEW QUESTION 171
When interviewing an individual in relation to a fraud investigation, which course of action should the internal auditor follow?
- A. Refrain from deviating from the list of questions prepared before the interview.
- B. Discontinue questioning once the individual has confessed to the fraud.
- C. Establish a rapport with the subject to encourage openness.
- D. Assure the individual that the results of the interview will remain confidential.
Answer: C
NEW QUESTION 172
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.
- A. 3 and 4
- B. 1 and 2
- C. 1 and 3
- D. 2 and 4
Answer: A
NEW QUESTION 173
A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?
- A. Compare the sales discounts offered to each customer.
- B. Compare the ratio of outstanding receivables to the authorized credit limit for each customer.
- C. Compare credit reports with annual sales for a sample of customers.
- D. Compare the aging of outstanding receivables due from each customer.
Answer: A
Explanation:
Section: Volume A
Explanation
NEW QUESTION 174
An internal auditor was reviewing the procurement department's tender documentation for completeness He documented all discrepancies but the procurement manager disagreed with his findings Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have prevented this situation?
- A. The internal auditor should have created a more thorough work program, which would address audit criteria and potential causes in more detail
- B. The auditor should have instructed procurement workers that changes to the database during the course of the audit were strictly forbidden
- C. The auditor should have extracted a list of logs and identified any actions that were executed in the database during the audit
- D. The auditor should have ensured the preservation of audit evidence by taking screenshots or extracting tender documents
Answer: D
NEW QUESTION 175
In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?
- A. Internally created documentary evidence is considered less valid than externally created documentary evidence.
- B. Recomputation, though highly valid, is limited in usefulness due to its limited scope.
- C. The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.
- D. The validity of confirmations varies directly with the independence of the party receiving the confirmation.
Answer: C
NEW QUESTION 176
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. Error-prone transmission links for downloading the data from the mainframe data files.
- C. The difficulty of establishing access privileges for each subset of the mainframe data.
- D. Inconsistencies in the mainframe data due to lack of integrity constraints on the data files.
Answer: A
NEW QUESTION 177
Which of the following would have the least impact (either positive or negative) on an assessment of a department's control environment?
- A. The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.
- B. Many department functions were duplicated or verified by other department employees as part of the department's normal procedures.
- C. Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.
- D. The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.
Answer: A
NEW QUESTION 178
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:
- A. Internal auditing standards.
- B. The internal audit activity's charter.
- C. The engagement client.
- D. The audit engagement team.
Answer: C
NEW QUESTION 179
Which of the following situations would justify the removal of a finding from the final audit report?
- A. Management has already satisfactorily completed the recommended corrective action.
- B. Management believes that the finding is insignificant and unfairly included in the report.
- C. Management disagrees with the report findings and conclusions in their responses.
- D. Management has provided additional information that contradicts the findings.
Answer: D
NEW QUESTION 180
A recent survey indicated that residents of a small town take the train to a nearby city eight times per month, on average. The same survey showed that the number of train trips that a resident takes per month (y) is determined by the number of days per month that the resident works in the nearby city (x), according to the equation: y = 2 + 2x. A person who never works in the nearby city is expected to take the train:
- A. Zero times per month.
- B. Four times per month.
- C. Two times per month.
- D. Eight times per month.
Answer: C
NEW QUESTION 181
When interviewing an individual in relation to a fraud investigation, which course of action should the internal auditor follow?
- A. Refrain from deviating from the list of questions prepared before the interview.
- B. Discontinue questioning once the individual has confessed to the fraud.
- C. Establish a rapport with the subject to encourage openness.
- D. Assure the individual that the results of the interview will remain confidential.
Answer: C
NEW QUESTION 182
According to IIA guidance, organizations have the most influence on which element of fraud?
- A. Pressure.
- B. Incentives.
- C. Rationalization.
- D. Opportunity.
Answer: D
NEW QUESTION 183
Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?
- A. Verify that amounts are correct.
- B. Verify that benefits deductions are accurate.
- C. Verify that payments are on time.
- D. Verify that recipients are valid employees.
Answer: D
NEW QUESTION 184
While performing an audit of the human resources department, an internal auditor discovered unencrypted files containing the personal information of employees stored on a public shared drive. According to IIA guidance, which of the following actions by the auditor would be the most appropriate?
- A. Immediately review the audit logs to see if anyone has accessed this information and follow-up.
- B. Change permissions to the shared drive to only allow access to human resources personnel.
- C. Communicate the issue to the chief audit executive as well as IT and legal departments.
- D. Remove the files containing the social security numbers and personal information.
Answer: C
NEW QUESTION 185
Which of the following statements is true pertaining to interviewing a fraud suspect?
1.Information gathered can be subjective as well as objective to be useful.
2.The primary objective is to obtain a voluntary written confession.
3.The interviewer is likely to begin the interview with open-ended questions.
4.Video recordings always should be used to provide the highest quality evidence.
- A. 1 only
- B. 1 and 3
- C. 2 and 4
- D. 4 only
Answer: B
NEW QUESTION 186
During an audit of an ethics program, which of the following procedures are most appropriate to evaluate the effectiveness of the program?
* Testing whether corrective actions taken on involved parties breaching the ethics program are adequate.
* Testing whether all employees are mandated through policy to comply with the ethics program.
* Testing whether all employees are required to confirm in writing their compliance with the ethics program.
* Testing through surveys employee's level of understanding and commitment to the ethics program.
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 187
According to the International Professional Practices Framework, which of the following statements is true regarding the use of the statement, "Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing," when communicating results of a seven-year-old internal audit activity?
- A. The statement may be used only if the results of the quality assurance and improvement program support the statement.
- B. The statement may be used whether or not the internal audit department has an external quality assessment review or an independent validation of a self assessment.
- C. The statement should not be used for a consulting engagement.
- D. The statement may be used only when conducting international engagements.
Answer: A
NEW QUESTION 188
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What format is the IIA CIA Part 2 Exam?
Number of Questions: 100 questions
The passing score: 70%
Format : multiple-choice
Time Duration: 120 mins
Languages: English
IIA Exam Practice Test To Gain Brilliante Result: https://www.exams-boost.com/IIA-CIA-Part2-valid-materials.html
Tested Material Used To IIA-CIA-Part2: https://drive.google.com/open?id=1_sgAcSprL5Ba2ZgnsHwoFm5kDQFh61i0