IIA-CIA-Part2 Study Guide Brilliant IIA-CIA-Part2 Exam Dumps PDF
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IIA-CIA-Part2 Exam is the second part of the Certified Internal Auditor (CIA) certification program, which is recognized globally as the standard for internal auditors. To be eligible to take the exam, candidates must have completed the first part of the CIA program, which covers the essentials of internal auditing. Candidates must also have a minimum of two years of experience in internal auditing or a related field.
NEW QUESTION # 150
An auditor-in-charge is preparing her audit team for a consulting engagement at one of the organization's foreign subsidiaries. According to the Standards, which of the following would not be a necessary step prior to beginning the engagement?
- A. Verify that none of the audit team worked for the foreign subsidiary within the last year to ensure independence.
- B. Communicate a time frame as well as a contingency plan in the event the engagement may take longer than expected.
- C. Communicate what logistical support will be provided by the subsidiary for the duration of the engagement.
- D. Agree, in writing, with the subsidiary's senior management regarding the scope of the engagement.
Answer: A
NEW QUESTION # 151
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. Were audit findings relevant and useful to management?
- C. Were the findings reported in a timely manner?
- D. Does the audit report format present issues clearly and concisely?
Answer: B
NEW QUESTION # 152
A company owns a machine that will produce 100 light switches in four hours. Due to increased demand, a second machine capable of producing 100 light switches in three hours has been added.
Approximately how many hours will it take to produce 100 light switches using both machines working together?
- A. 0.58
- B. 1.7
- C. 3.5
- D. 7.0
Answer: B
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 153
An internal auditor compares real-time gasoline production data to corresponding final gasoline production reports and finds minor but consistent daily discrepancies. If the auditor is concerned about theft, which of the following next steps is most consistent with IIA guidance?
- A. Contact security personnel as evidence suggests gasoline is being stolen from production premises.
- B. Confront the production manager and ask her to explain the differences between real-time and reported data.
- C. Reconcile online data and the final production reports to gasoline sales reports.
- D. Review the processes used to collect the production data and to compile the final production reports.
Answer: D
NEW QUESTION # 154
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
- A. Determine the costs of implementing the recommendations.
- B. Report follow-up activities to senior management.
- C. Evaluate the extent of improvements.
- D. Implement follow-up procedures to evaluate residual risk.
Answer: A
NEW QUESTION # 155
An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?
- A. Verifying the existence of inventory items in each warehouse
- B. Valuating the obsolete Inventory from all the warehouse locations
- C. Assigning the tolerable deviation rate to determine the sample size
- D. Confirming that the purchased items are recorded In the correct period
Answer: D
NEW QUESTION # 156
Which two of the following considerations must an internal auditor take into account while planning an audit of an accounting system/application that has been in use for the last five
years?
The level and manner of linkages between the business' mission, objectives, and structure and the accounting system/application.
-
--
Presence or absence of computerized and manual controls that address risks.
Identification of risks at the application level, e.g. availability and security of the
system.
Testing of the system/application for bugs and errors.
-
- A. 2 and 3 only.
- B. 2 and 4 only.
- C. 3 and 4 only.
- D. 1 and 3 only.
Answer: A
NEW QUESTION # 157
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?
- A. Variables sampling.
- B. Attributes sampling.
- C. Discovery sampling.
- D. Targeted sampling.
Answer: C
NEW QUESTION # 158
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 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?
- A. Assess the effectiveness of corrections by reviewing statistics related to unplanned system outages, and denials of service.
- B. Assess the status of corrective action during a follow-up audit engagement after the action plan has been completed.
- C. Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.
- D. Reassign information systems auditors to assist in implementing management's action plan.
Answer: C
NEW QUESTION # 159
Which of the following is an effective way for an internal auditor to improve communications with the client during a contentious audit?
- A. Encourage the client to participate as a partner in the decision-making process to determine the changes that need to be made.
- B. Obtain the support of the board of directors for proposed changes before discussing the changes with operating management.
- C. Speak privately with key client personnel immediately after proposed changes are announced to address their concerns.
- D. Clearly explain to the client the role of the internal audit activity in the change process.
Answer: A
NEW QUESTION # 160
An auditor plans to analyze customer satisfaction, including: (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?
- A. Although useful, such an analysis does not address any risk factors.
- B. Analysis of three months' activity would not evaluate customer satisfaction.
- C. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.
- D. The survey would not consider customers who did not make purchases in the last three months.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION # 161
Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales?
- A. Use discovery sampling, selecting transactions from invoices which should have freight charges added to them.
- B. Use difference estimation, selecting transactions from invoices which should have freight charges added to them.
- C. Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.
- D. Use either test data or parallel simulation to test the computer application.
Answer: D
NEW QUESTION # 162
Which of the following are key characteristics of enterprise risk management?
1. It considers risk in the formulation of strategy.
2. It applies risk management in some units of an entity.
3. It takes a portfolio view of risks throughout the enterprise.
4. It restricts the organization's ability to seize opportunities inherent in future events.
- A. 2 and 4 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 1 and 3 only
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 163
Which of the following examples of audit evidence is the most persuasive?
- A. Time cards for employees, which are stored by a manager.
- B. Vendor invoices filed by the accounting department.
- C. Canceled checks written by the treasurer and returned from a bank.
- D. Real estate deeds, which were properly recorded with a government agency.
Answer: D
NEW QUESTION # 164
Recommendations should be included in the audit report in order to:
- A. Ensure that audit findings are resolved in the manner suggested by the auditor.
- B. Provide management with options for addressing audit findings.
- C. Minimize the amount of time required to correct audit findings.
- D. Ensure that audit findings are addressed by management.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 165
Which of the following best describes how an internal auditor would use a flowchart during engagement planning?
- A. To plan for evaluating potential losses
- B. To prepare for testing the effectiveness of controls
- C. To evaluate the design of controls
- D. To prepare a sampling plan for the engagement
Answer: C
NEW QUESTION # 166
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 recipients are valid employees.
- B. Verify that payments are on time.
- C. Verify that amounts are correct.
- D. Verify that benefits deductions are accurate.
Answer: A
NEW QUESTION # 167
An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software development services.
Which of the following actions is most appropriate for the internal auditor to take?
- A. Inform the external auditors of the potential conflict of interest.
- B. Inform the audit supervisor.
- C. Disregard the potential conflict, because it is outside the scope of the audit assignment.
- D. Investigate the potential conflict of interest.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 168
The chief audit executive (CAE) of a new organization is in the process of determining the manner in which audit reports will be distributed and to whom. According to the Standards, which of the following is the most appropriate course of action for the CAE to take to develop this distribution process?
- A. The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.
- B. The CAE should request that senior management and the board meet to determine the most appropriate reporting method.
- C. The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.
- D. The CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.
Answer: C
NEW QUESTION # 169
An internal auditor compares real-time gasoline production data to corresponding final gasoline production reports and finds minor but consistent daily discrepancies. If the auditor is concerned about theft, which of the following next steps is most consistent with IIA guidance?
- A. Contact security personnel as evidence suggests gasoline is being stolen from production premises.
- B. Confront the production manager and ask her to explain the differences between real-time and reported data.
- C. Reconcile online data and the final production reports to gasoline sales reports.
- D. Review the processes used to collect the production data and to compile the final production reports.
Answer: D
NEW QUESTION # 170
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
- A. Determine the costs of implementing the recommendations.
- B. Report follow-up activities to senior management.
- C. Evaluate the extent of improvements.
- D. Implement follow-up procedures to evaluate residual risk.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 171
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IIA-CIA-Part2 Dumps Updated Oct 12, 2023 WIith 360 Questions: https://drive.google.com/open?id=1OmqXB9jHYp45yj0xUjLAxXk8BFXUOqga