2022 Realistic IIA-CIA-Part2 Dumps Latest IIA Practice Tests Dumps
IIA-CIA-Part2 Dumps PDF - IIA-CIA-Part2 Real Exam Questions Answers
NEW QUESTION 281
An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?
1.Daily report that identifies unsuccessful system log-in attempts.
2.Weekly management communication with tips on identifying possible fraud.
3.E-mail alert sent to management for checks issued over $100,000.00.
4.New hire training to explain fraud and employee misconduct.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 3 and 4 only
Answer: A
NEW QUESTION 282
Which of the following is least likely to help ensure that risk is considered in a work program?
- A. Prior risk assessments are considered.
- B. Client efforts to affect risk management are considered.
- C. Risks are discussed with audit client.
- D. All available information from the risk-based plan is used.
Answer: A
NEW QUESTION 283
An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?
A)
B)
C)
D)
- A. Option D
- B. Option A
- C. Option C
- D. Option B
Answer: D
NEW QUESTION 284
The scope of a consulting engagement performed by internal auditors should:
- A. Exclude areas that might be the subject of subsequent assurance engagements.
- B. Be limited to activities within the current operating period.
- C. Be preapproved in conjunction with the annual plan of consulting engagements.
- D. Be sufficient to address the objectives agreed upon with the client.
Answer: D
NEW QUESTION 285
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. Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.
- B. 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.
- C. Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.
- D. Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.
Answer: D
NEW QUESTION 286
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. Carried out using standard review procedures for retailers.
- B. Carried out in accordance with the Standards.
- C. Performed in accordance with the terms of the contract.
- D. Performed under the supervision of the information technology department.
Answer: B
NEW QUESTION 287
If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?
- A. Acts that damage or have an adverse effect on the environment.
- B. Acts that may endanger the health or safety of individuals.
- C. Acts that conceal inappropriate activities in the organization.
- D. Acts that favor one party to the detriment of another.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 288
Which of the following does not represent a difficulty in using red flags as fraud indicators?
- A. Some red flags are difficult to quantify or to evaluate.
- B. Red flag information is only gathered in extraordinary circumstances.
- C. The red flags literature is not well enough established to have a positive impact on auditing.
- D. Many common red flags are also associated with situations where no fraud exists.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION 289
Which of the following actions best describes an internal auditor's use of test data to determine whether an organization's new accounts payable system avoids processing questionable invoices for payment?
- A. Using an automated system that assists internal auditors with automating the risk analysis of the computer program for invoicing
- B. Embedding tools in the computer program to analyze the review processes of invoices for potential issues that may hamper payments
- C. Adding invoices to the computer program to assess the reliability and effectiveness of the review process and whether controls work.
- D. Creating an automated tool that monitors the computer program on a daily basis for potential issues that need corrective actions.
Answer: C
NEW QUESTION 290
According to IIA guidance, organizations have the most influence on which element of fraud?
- A. Opportunity.
- B. Pressure.
- C. Incentives.
- D. Rationalization.
Answer: A
NEW QUESTION 291
Which of the following data sources would provide the least valid data for an audit of a retail store's customer service?
- A. A graph that compares staffing levels for selected times with store traffic (number of customers) over the same time period.
- B. Interviews of randomly selected service personnel regarding the quality of service that they provide.
- C. A random survey of customer satisfaction given to customers as they leave the store.
- D. A graph of customer service training across stores, comparing training with overall levels of service satisfaction.
Answer: B
NEW QUESTION 292
The most effective method of reporting engagement results to management and stimulating action is to:
- A. Limit verbal commentary and present a series of slides that graphically depict the engagement results.
- B. Distribute copies of the report, ask the participants to read the report, and ask for questions.
- C. Use slides to support a discussion of major points.
- D. Deliver a lecture on the engagement results.
Answer: C
NEW QUESTION 293
If participants in a control self-assessment workshop begin breaking their agreed-upon ground rules, the facilitator should:
- A. Have the participants modify the ground rules.
- B. Allow them to continue briefly and then remind them of the ground rules.
- C. Ignore the behavior and continue the workshop.
- D. Strictly enforce the ground rules.
Answer: B
NEW QUESTION 294
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. III only
- B. I and III only
- C. I, II, and III
- D. I only
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 295
Which of the following is a responsibility of the internal auditor once a fraud investigation has been concluded?
- A. Notify the appropriate regulatory authorities regarding the outcome of the investigation.
- B. Ascertain the extent to which fraud has been perpetrated.
- C. Determine if controls need to be implemented or strengthened to reduce future vulnerability.
- D. Implement controls to prevent future occurrences.
Answer: C
NEW QUESTION 296
When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?
1. Add value.
2. Improve operations.
3. Provide assurance that the internal audit activity conforms with the Standards.
4. Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.
- A. 1 and 3 only
- B. 1 only
- C. 1, 2, 3, and 4
- D. 1 and 2 only
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 297
An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?
- A. Interviewing is the least costly audit technique when a large amount of information is involved.
- B. Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.
- C. Interviews are the most efficient way to upgrade the information to the level of objective evidence.
- D. Interviews provide the opportunity to insert questions to probe promising areas.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 298
A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?
1. Graded positive opinion.
2. Negative assurance opinion.
3. Limited assurance opinion.
4. Third-party opinion.
- A. 1 and 4
- B. 2 and 4
- C. 1 and 3
- D. 2 and 3
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 299
An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?
I. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
II. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
III. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
IV. Do nothing because management has agreed to address the problem.
- A. III only
- B. II and III only
- C. I and II only
- D. IV only
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 300
Which of the following are typical steps in the design of an organization's performance measurement system?
- A. Understand organizational strategy; perform a situational assessment; establish measurement categories; and take actions based upon measurement results.
- B. Perform a situational assessment; generate macro measurements; review measurement data; and change strategy based upon measurement results.
- C. Establish a measurement plan; create an organizational strategy linked to those measurements; trend measurement data; and measure data variability.
- D. Categorize performance measures; establish a data collection plan; analyze data; and predict future performance.
Answer: A
NEW QUESTION 301
The chief audit executive established an internal audit activity (IAA) performance standard requiring all audit reports to be issued within 48 hours of the exit meeting with the client. Which of the following describes an exit meeting strategy that would best help the IAA meet this performance standard?
- A. The objective of the exit meeting is to solicit action plans for audit observations.
- B. The objective of the exit meeting is to confirm understanding of audit results
- C. The objective of the exit meeting is to reach agreement on audit observations.
- D. The objective of the exit meeting is to confirm final details of fieldwork.
Answer: B
NEW QUESTION 302
A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results.
Which of the following is most likely to explain the difference in the regional results?
- A. The more successful region spends 30 percent more money on education than does the other region.
- B. The more successful region spends more money per student on education than does the other region.
- C. A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.
- D. The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent.
Answer: B
NEW QUESTION 303
Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?
- A. To help develop process maps.
- B. To determine segregation of duties.
- C. To identify residual risks.
- D. To test the adequacy of controls.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 304
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