[Feb 24, 2024] 100% Pass Guarantee for IIA-CIA-Part2 Dumps with Actual Exam Questions
Today Updated IIA-CIA-Part2 Exam Dumps Actual Questions
Preparing for the IIA-CIA-Part2 exam requires a thorough understanding of the topics covered and a commitment to studying and practicing the skills required for success. The IIA offers a variety of resources to help candidates prepare for the exam, including study materials, practice exams, and online courses. Candidates may also choose to participate in study groups or seek the guidance of a mentor to help them prepare.
NEW QUESTION # 28
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
- A. Feedback control data.
- B. Irrelevant and argumentative information.
- C. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
- D. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
Answer: A
NEW QUESTION # 29
Which of the following actions has the least influence on the chief audit executive's development of an audit plan?
- A. Changes in the organizations structure or budget.
- B. Input from senior management and the board.
- C. An assessment of risk and exposures affecting the organization.
- D. An evaluation of the complexity of each audit engagement.
Answer: D
NEW QUESTION # 30
An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?
1.Allow the auditor to decide whether to extend the audit engagement.
2.Determine whether the work already completed is sufficient to conclude the engagement.
3.Provide the auditor feedback on areas of improvement for future engagements.
4.Provide the auditor with instructions and directions to complete the audit.
- A. 1, 2, and 3
- B. 1, 2, and 4
- C. 2, 3, and 4
- D. 1, 3, and 4
Answer: C
NEW QUESTION # 31
During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?
- A. Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.
- B. Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.
- C. Select a random sample of receiving reports and trace to the recording in the perpetual inventory records. Note differences and investigate by type of product.
- D. Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.
Answer: A
NEW QUESTION # 32
To furnish useful and timely information and promote improvements in operations, internal auditors should provide:
- A. Reports that meet the expectations of both operational and senior management.
- B. Information in written form before it is discussed with the engagement client.
- C. Senior management with reports that emphasize the operational details of defective conditions.
- D. Operating management with reports that emphasize general concerns and risks.
Answer: A
NEW QUESTION # 33
In preparing to facilitate a control self-assessment session, an auditor would be least likely to ensure that:
- A. Background research is completed to familiarize the auditor with relevant issues.
- B. An independent content expert is available to help settle disagreements.
- C. Management is consulted on the issues and priorities.
- D. Key stakeholders are represented in the group.
Answer: B
NEW QUESTION # 34
Which of the following best defines an engagement conclusion?
- A. An opinion that must be included in the engagement final communication.
- B. A recommendation for corrective action.
- C. An auditor's determination of the cause of an engagement observation.
- D. An auditor's professional judgment of the situation which was reviewed.
Answer: D
NEW QUESTION # 35
According to IIA guidance, organizations have the most influence on which element of fraud?
- A. Rationalization.
- B. Incentives.
- C. Opportunity.
- D. Pressure.
Answer: C
NEW QUESTION # 36
As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?
1. Applicants are not required to have their signed applications legally authenticated.
2. Applicants' educational information is not validated with the educational institution before employment is offered.
3. Information related to applicants' long-term work history is not validated before employment is offered.
- A. I, II, and III
- B. I and II only
- C. II and III only
- D. III only
Answer: C
NEW QUESTION # 37
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?
- A. Assess the organization's ability to minimize potential external risks
- B. Assess the organization's risk impacts from the markets in which it operates
- C. Assess the organization's process of vetting vendors that provide necessary services to the organization
- D. Assess the organization's controls implemented that would help minimize risks
Answer: C
NEW QUESTION # 38
The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?
- A. Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.
- B. Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.
- C. Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
- D. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
Answer: D
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION # 39
Internal control questionnaires are used to achieve which of the following objectives?
- A. To assess the controls mitigating major risks
- B. To determine whether specified contra procedures are in place
- C. To ascertain the operating effectiveness of a procedure
- D. To verify the accuracy of Information in a report
Answer: B
NEW QUESTION # 40
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 in accordance with the terms of the contract.
- B. Carried out in accordance with the Standards.
- C. Performed under the supervision of the information technology department.
- D. Carried out using standard review procedures for retailers.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 41
Which of the following is not an outcome of control self-assessment?
- A. The entire objectives-risks-controls infrastructure of an organization is subject to greater monitoring and continuous improvement.
- B. Internal auditors become involved in and knowledgeable about the self-assessment process.
- C. Nonaudit employees become experienced in assessing controls and associating control processes with managing risks.
- D. Informal, soft controls are omitted, and greater focus is placed on hard controls.
Answer: D
NEW QUESTION # 42
During an assurance engagement, an internal auditor noted that the time staff spent accessing customer information in large Excel spreadsheets could be reduced significantly through the use of macros. The auditor would like to train staff on how to use the macros. Which of the following is the most appropriate course of action for the internal auditor to take?
- A. The auditor must create a new, separate consulting engagement with the business process owner prior to performing the improvement task.
- B. The auditor may proceed with the improvement task without obtaining formal approval, because the task is voluntary and not time-intensive.
- C. The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.
- D. The auditor must not perform the training, because any task to improve the business process could impact audit independence.
Answer: C
NEW QUESTION # 43
When determining the nature, timing, and extent of follow up, the chief audit executive considers all of the following factors except:
- A. Complexity of the corrective action and time period involved.
- B. Significance of the reported observation or recommendation, degree of effort, and cost needed to correct the reported condition.
- C. Authority and responsibility of the person required to take corrective action.
- D. Impact that may result should the corrective action fail.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 44
An internal auditor is planning a consuming engagement and the objective is to identify opportunities to improve the efficiency of the organization's procurement process. The auditor is preparing to conduct a preliminary survey of the are a. Which of the following approaches would be most useful to obtain relevant information to support the engagement objective?
- A. Review the procurement process map w*h employees who carry out key activities to obtain their input and insights.
- B. Complete a transaction walkthrough fiat focuses on the design and operation of financial reporting controls
- C. Conduct interviews with senior management to obtain their input and insights regarding operational controls.
- D. Perform a comprehensive review of the organization s existing policies and standard operating procedures.
Answer: A
NEW QUESTION # 45
The internal audit activity (IAA) wants to measure its performance related to the quality of audit recommendations. Which of the following client survey questions would best help the IAA meet this objective?
- A. Does the IAA work with a high degree of professionalism and objectivity?
- B. Does the audit report format present issues clearly and concisely?
- C. Were audit findings relevant and useful to management?
- D. Were the findings reported in a timely manner?
Answer: C
NEW QUESTION # 46
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