Accurate Hot Selling IIA-CIA-Part2 Exam Dumps 2024 Newly Released
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NEW QUESTION # 35
Which of the following would not include recommendations for process improvements?
- A. Consulting engagement.
- B. Forensic investigation.
- C. Due diligence engagement.
- D. Internal audit engagement.
Answer: C
NEW QUESTION # 36
Which of the following statements describes an engagement planning best practice?
- A. It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.
- B. If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.
- C. Engagement planning activities include setting engagement objectives that align with audit client's business objectives.
- D. The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.
Answer: C
NEW QUESTION # 37
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. II and III only
- C. I and II only
- D. I only
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 38
A manufacturing organization is considering a merger with a similar firm, and requests that the chief audit executive (CAE) perform a due diligence audit. During the preliminary survey, the CAE notes that inventory management is a high risk area. In consultation with the external auditors and legal advisors, the CAE learns that they share those concerns. Which of the following is the CAE's best course of action?
- A. Coordinate a review of inventory management with external auditors and legal advisors and ensure each group focuses on their area of expertise to ascertain the extent of the problems, if any.
- B. Advise management that internal audit, external audit, and legal advisors all have concerns about inventory management and, given the high materiality of inventory, management should not proceed with the merger.
- C. Coordinate with the merging firm's internal audit department to better understand the inventory management function and whether the concerns are well-founded.
- D. Perform an independent audit of the merging firm's inventory management practices to verify the concerns and to provide relevant and reliable results to management for their consideration and action.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 39
During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?
- A. Receive periodic feedback from museum staff regarding the status of the system implementation.
- B. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.
- C. Monitor the system implementation and schedule a follow-up review once the new system is in place.
- D. Schedule an audit of the museum's security systems to determine if theft is a problem.
Answer: B
NEW QUESTION # 40
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Control risk.
- B. Inherent risk.
- C. Sampling risk.
- D. Detection risk.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 41
An internal auditor wanted to determine whether company vehicles were being used for personal purposes She extracted a report that listed company vehicle numbers business units to which the vehicles are allocated travel dates, travel duration and mileage She then filtered the data for weekend dates Which of the following additional information would the auditor need?
- A. Location and route data of vehicles
- B. Average fuel consumption data of vehicles
- C. Description of responsibilities of business units.
- D. Names and work titles of employees
Answer: B
NEW QUESTION # 42
Which of the following conditions is the strongest indicator of possible fraud?
- A. A condition of excess manufacturing waste material.
- B. An assistant treasurer who refuses to take vacations.
- C. Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.
- D. A manager who is often over budget at the end of a reporting period.
Answer: B
NEW QUESTION # 43
A chief audit executive is preparing interview questions for the upcoming recruitment of a senior internal auditor. According to IIA guidance, which of the following attributes shows a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior?
- A. Flexibility.
- B. Integrity.
- C. Initiative.
- D. Curiosity.
Answer: D
NEW QUESTION # 44
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 CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.
- B. The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.
- C. The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.
- D. The CAE should request that senior management and the board meet to determine the most appropriate reporting method.
Answer: B
NEW QUESTION # 45
At the conclusion of an audit of an organization's treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow-up findings to the:
I.Treasurer.
II.
Chief financial officer.
III.
President.
IV.
Board.
- A. I, II, and III only.
- B. I, II, III, and IV.
- C. III and IV only.
- D. I and II only.
Answer: B
NEW QUESTION # 46
According to IIA guidance which of the following statements is true regarding heat maps?
- A. A heat map recognizes impact and likelihood as equally important
- B. A heat map recognizes that the priority of impact and likelihood can vary.
- C. A heat map sets likelihood to have higher priority than impact.
- D. A heat map sets impact to have higher priority than likelihood.
Answer: B
NEW QUESTION # 47
According to the Standards, which of the following describes the condition attribute when applied to the observations and recommendations contained in the audit report?
- A. The factual evidence that the internal auditor found in the course of the examination.
- B. The reason for the difference between the expected state and the actual state.
- C. The risk or exposure the organization encounters because the actual state is not consistent with the criteria.
- D. The standards, measures, or expectations used in making an evaluation or verification.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 48
During the planning phase of an assurance engagement, an internal auditor seeks to gam an understanding of now when the area under review is accomplishing its objectives When of the Following information-gathering techniques is the auditor most likely to use?
- A. A review of previous audit and follow- up results of the area under review
- B. An interview with the manager regarding the area's business plan.
- C. A review of the key performance indicators of me area under review.
- D. A walkthrough of the key processes of the area under review.
Answer: D
NEW QUESTION # 49
According to IIA guidance, which of the following are the most important objectives for helping to ensure the appropriate completion of an engagement?
1.Coordinate audit team members to ensure the efficient execution of all engagement procedures.
2.Confirm engagement workpapers properly support the observations, recommendations, and conclusions.
3.Provide structured learning opportunities for engagement auditors when possible.
4.Ensure engagement objectives are reviewed for satisfactory achievement and are documented properly.
- A. 1, 3, and 4
- B. 1, 2, and 4
- C. 1, 2, and 3
- D. 2, 3, and 4
Answer: B
NEW QUESTION # 50
A code of ethics within the internal auditing profession is necessary in order to:
- A. Provide guidance to internal auditors in their service to others.
- B. Reduce the likelihood that members of the profession will be sued for substandard work.
- C. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
- D. Ensure that all members of the profession perform at approximately the same level of competence.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 51
According to the Standards, which of the following is an attribute when applied to the observations and recommendations contained in the audit report?
- A. Client accomplishments.
- B. Supportive information.
- C. Effect.
- D. Scope statements.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 52
After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:
- A. Chief executive officer.
- B. Audit committee chairperson.
- C. Legal counsel.
- D. External auditor.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 53
Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?
- A. The availability of the auditors in relation to the availability of key client staff.
- B. The amount of experience the auditors have conducting audits in the specific area of the organization.
- C. Whether outside resources will be needed, and their availability.
- D. Whether the budgeted hours are sufficient to complete the audit within the current scope.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 54
Which of the following would be the least desirable criteria against which to judge current operations of an organization's treasury function?
- A. Codification of best practices of the treasury function in relevant industries.
- B. Finance textbook illustrations of generally accepted good treasury function practices.
- C. Company policies and procedures delegating authority and assigning responsibilities.
- D. The operations of the treasury function as documented during the last audit engagement.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION # 55
An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?
- A. Test of control.
- B. Test of design.
- C. Detail testing.
- D. Analytical procedures.
Answer: C
NEW QUESTION # 56
Which of the following activities would be performed during a benchmarking consulting engagement?
I. Collect data relevant to the benchmarking process.
II. Review all business processes.
III. Define critical success factors.
IV. Identify performance gaps.
- A. I, II, and III only
- B. I, III, and IV only
- C. I and III only
- D. II and IV only
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 57
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. Disregard the potential conflict, because it is outside the scope of the audit assignment.
- B. Inform the audit supervisor.
- C. Inform the external auditors of the potential conflict of interest.
- D. Investigate the potential conflict of interest.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 58
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