Pass IIA-CIA-Part2 Brain Dump Updated Certification Sample Questions
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IIA-CIA-Part2 exam consists of 100 multiple-choice questions and is administered in English. IIA-CIA-Part2 exam is computer-based and can be taken at any of the IIA's testing centers around the world. To be eligible to take the exam, candidates must have a minimum of two years of internal auditing experience or a bachelor's degree in a related field.
IIA-CIA-Part2 exam is recognized by the Institute of Internal Auditors (IIA), which is the leading international professional association for internal auditors. The IIA-CIA-Part2 exam is a key component of the Certified Internal Auditor (CIA) certification program. Passing IIA-CIA-Part2 exam is necessary for individuals who want to demonstrate their proficiency in internal auditing and advance their careers in this field.
NEW QUESTION # 53
According to the Standards, which of the following objectives is not required to ensure the appropriate completion of an engagement?
- A. Confirming engagement working papers properly support the observations, recommendations and conclusions.
- B. Determining audit team members are coordinated to ensure the efficient execution of all engagement procedures.
- C. Ensuring all engagement objectives are reviewed for satisfactory achievement and properly documented.
- D. Providing structured learning opportunities for engagement auditors when and wherever possible.
Answer: D
NEW QUESTION # 54
Which of the following internal audit procedures commonly involves sampling?
- A. Trend analysis and benchmarking
- B. Confirmation and financial statement analysis
- C. Vouching and tracing
- D. Reperformance and inspection
Answer: C
NEW QUESTION # 55
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?
- A. The standard of living of one of the purchasing agents has increased.
- B. The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
- C. The cost of goods procured seems to be excessive in comparison with previous years.
- D. The internal control structure has significant weaknesses.
Answer: B
NEW QUESTION # 56
What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?
- A. Compromise.
- B. Spontaneous agreement.
- C. Majority voting.
- D. Consensus building.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION # 57
According to IIA guidance, which of the following are acceptable strategies for an internal audit activity (IAA) to establish or build relationships?
- A. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and ensure that all communications with the board are formal audit reports or preset agendas.
- B. Assist executives with their administrative and governance responsibilities, and ensure that all communications with the board are formal audit reports or preset agendas.
- C. During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and encourage all IAA members to develop relationships with the organization's executives.
- D. Assist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization's executives.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION # 58
What would be used to determine the collectability of accounts receivable balances?
- A. Positive accounts receivable confirmations.
- B. The file of related shipping documents.
- C. An aged accounts receivable listing.
- D. Negative accounts receivable confirmations.
Answer: C
NEW QUESTION # 59
An internal auditor has just undertaken an organization-wide risk assessment. In identifying potential audit engagements, the internal auditor should consider least:
- A. Focusing on those risks highlighted by the external auditor.
- B. Focusing in areas not audited last year.
- C. Factoring in management requests.
- D. Focusing on the high risk areas as sources of potential engagements.
Answer: B
NEW QUESTION # 60
If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?
- A. The confidence level could not be quantified.
- B. The risk of incorrect acceptance would be higher.
- C. The projected value of inventory would be less reliable.
- D. The precision would be larger.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 61
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between six and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. Which of the following is the most appropriate course of action for the chief audit executive to take?
- A. Evaluate statistics related to unplanned system outages, unauthorized access attempts, and denials of service to assess the effectiveness of corrections.
- B. Assess the adequacy of the action plan and monitor key dates and deliverables.
- C. Schedule a follow-up audit engagement to assess the status of corrective action.
- D. Reassign information systems auditors to assist the information technology department in correcting the weaknesses.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 62
An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?
- A. All staff should be appropriately trained and required to follow the organization's established policies and procedures pertaining to document management
- B. Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it
- C. if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove
- D. The document management policy requires business client data to be stored in a specific management database
Answer: B
NEW QUESTION # 63
Monetary-unit sampling is most useful when the internal auditor:
- A. Is testing the accounts payable balance.
- B. Expects to find several material errors in the sample.
- C. Cannot cumulatively arrange the population items.
- D. Is concerned with overstatements.
Answer: D
NEW QUESTION # 64
An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent."
Which of the following can be validly concluded from the auditor's statement?
I.Division A's production level declined by 15 percent.
II.
Division A could have sold more products than it produced.
III.
Division A usually sells all of the products that it produces.
- A. I only.
- B. III only.
- C. II only.
- D. I and II only.
Answer: C
NEW QUESTION # 65
Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?
- A. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.
- B. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
- C. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
- D. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
Answer: A
NEW QUESTION # 66
An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not credit worthy.
Which of the following would be least useful in monitoring the disposition of this finding?
- A. Updates from the information technology division regarding implementation of a new accounts receivable system.
- B. Periodic updates from the controller regarding the status of corrective actions.
- C. Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.
- D. Responses from the manager of accounts receivable regarding collection of outstanding receivables.
Answer: A
NEW QUESTION # 67
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between six and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. Which of the following is the most appropriate course of action for the chief audit executive to take?
- A. Evaluate statistics related to unplanned system outages, unauthorized access attempts, and denials of service to assess the effectiveness of corrections.
- B. Assess the adequacy of the action plan and monitor key dates and deliverables.
- C. Schedule a follow-up audit engagement to assess the status of corrective action.
- D. Reassign information systems auditors to assist the information technology department in correcting the weaknesses.
Answer: B
NEW QUESTION # 68
After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use:
- A. Judgmental sampling to select a sample of vouchers processed by clerks who were identified by the department manager as acting suspiciously.
- B. Probability-proportional-to-size sampling to select a sample of vouchers processed by the department during the past year.
- C. Simple random sampling to select a sample of vouchers processed by the department during the past year.
- D. Discovery sampling to select a sample of vouchers processed by the department during the past year.
Answer: D
NEW QUESTION # 69
An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?
- A. Document the issue in the audit file and follow up until the issues are resolved.
- B. Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
- C. Confirm the decision with management and document this decision in the audit file.
- D. Initiate an assurance engagement on the unresolved issues.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION # 70
Which of the following is most appropriate when conducting an interview during the course of a fraud investigation?
- A. Explain the detailed purpose to the interviewee.
- B. Assume that the interviewee is guilty.
- C. Have a witness present during the interview.
- D. Schedule the interview well in advance.
Answer: C
NEW QUESTION # 71
As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. Which of the following is true about the auditor's conclusion?
- A. The number of items selected for testing is inadequate to justify the conclusion.
- B. The shipping department is effective in meeting its responsibilities.
- C. None of the above.
- D. This conclusion would negate any need to perform tests of efficiency.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION # 72
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?
- A. Closing questions.
- B. Admission-seeking questions.
- C. Informational questions.
- D. Assessment questions.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 73
The following is a list of major findings in the executive summary report for an audit of the contract management process
- Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million
- Compliance with contract obligations and deliverables is not monitored
- No contract agreement with five vendors providing core services
Which of the following is an appropriate conclusion that can be drawn from these findings?
- A. Management should expedite actions to rectify the observations identified
- B. The internal controls guiding contract management are not operating effectively
- C. These are weaknesses resulting from a lack of a documented contracting policy
- D. Substandard service delivery by vendors may not be detected
Answer: D
NEW QUESTION # 74
A senior internal auditor is hired within the internal audit activity for a period of two years before advancing to an operations manager role within the business operations team. When staffing arrangement is being used in this scenario?
- A. Cosourcing agreement
- B. Rotational model
- C. Career model
- D. Comer of competence
Answer: C
NEW QUESTION # 75
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''
- A. Present the revised audit plan directly to the board for approval.
- B. Communicate with the CEO and present the revised audit plan to the board for approval.
- C. Present the revised audit plan directly to the CEO for approval
- D. Communicate with the chief financial officer and present the revised audit plan to the CEO tor approval
Answer: D
NEW QUESTION # 76
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Inherent risk.
- B. Sampling risk.
- C. Detection risk.
- D. Control risk.
Answer: A
NEW QUESTION # 77
An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if: I.
In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II.
Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III.
The cost of modifying the sales system to include a preventive control is less than $100,000.
- A. I and III only.
- B. III only.
- C. I, II, and III.
- D. I only.
Answer: D
NEW QUESTION # 78
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IIA-CIA-Part2: Practice of Internal Auditing exam is one of the most sought-after certifications by individuals looking for a career in internal auditing. Practice of Internal Auditing certification is offered by the Institute of Internal Auditors (IIA), a global organization that provides professional development, guidance, and certification to internal auditors worldwide. The IIA-CIA-Part2 exam is designed to test the candidate's knowledge, skills, and abilities in the practice of internal auditing.
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