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IIA-CIA-Part2 Certification Exam is recognized globally as a symbol of excellence in the internal audit profession. It is respected by employers, clients, and peers, and is often required for internal audit positions in many organizations. Individuals who hold this certification are considered to be highly qualified professionals in their field.
The IIA IIA-CIA-Part2 exam is comprised of 100 multiple choice questions and is administered in a computer-based format. Candidates are given a time limit of two hours to complete the exam. The passing score for the exam is 600 out of a possible 800 points.
IIA-CIA-Part2 Exam is the second part of the Certified Internal Auditor (CIA) designation, which is globally recognized as the standard for excellence in the internal auditing profession. IIA-CIA-Part2 exam consists of 100 multiple-choice questions and is timed for two and a half hours. Candidates who pass the exam earn the CIA designation and are recognized as experts in the field of internal auditing.
NEW QUESTION # 173
Which of the following statements is true?
- A. The internal audit activity's plan of engagments must be based on a formal quantitative risk assessment.
- B. The chief audit executive should consider changes to the long-range audit plan based on the requests of business unit managers.
- C. A risk assessment on which to base the internal audit activity's long-range plan must be undertaken at least once every three years.
- D. Consulting engagements provide the internal audit activity with flexibility to add value and do not need to be included in the long-range audit plan.
Answer: B
NEW QUESTION # 174
A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?
- A. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
- B. Both total sales and cost of ingredients used are less than expected.
- C. Both total sales and cost of ingredients used are greater than expected.
- D. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 175
During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:
- A. Determine whether appropriate resources are present to carry out the treasury function.
- B. Report any high-risk exposures of the treasury function to management and the board.
- C. Comply with the internal audit charter and applicable regulatory requirements.
- D. Identify areas of the treasury function that should be considered for potential engagement objectives.
Answer: D
NEW QUESTION # 176
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 3 only
- B. 1 and 3 only
- C. 1 and 4 only
- D. 2 and 4 only
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 177
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?
- A. Assessment questions.
- B. Closing questions.
- C. Informational questions.
- D. Admission-seeking questions.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 178
Monetary-unit sampling is most useful when the internal auditor:
- A. Expects to find several material errors in the sample.
- B. Is testing the accounts payable balance.
- C. Cannot cumulatively arrange the population items.
- D. Is concerned with overstatements.
Answer: D
NEW QUESTION # 179
During a review of data privacy an internal auditor is tasked with testing management's identification and prioritization of critical data collected by the organization. Which of the following steps would accomplish this objective?
- A. Review a sample of data to determine whether the risk classification is reasonable
- B. Trace data from storage to the collection sources to determine how critical data is collected and organized
- C. interview management to determine what types of data are collected and maintained
- D. Document and test a data inventory and classification program by determining the data classification levels and framework
Answer: B
NEW QUESTION # 180
Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?
- A. Objectives scope and timing at a high level to support coordination while adhering to confidentiality requirements
- B. No information should be shared with internal and external provider as it could introduce bias into the engagement results.
- C. The area and timing of the audit engagement to ensure confidentially and avoid conflict of interest.
- D. All plan information, including risk assessments, planned tests and past results to maximize the opportunity for coordination with internal and external providers.
Answer: C
NEW QUESTION # 181
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.
1. Treasurer.
2. Chief financial officer.
3. President.
4. Board.
- A. I and II only
- B. III and IV only
- C. I, II, III, and IV.
- D. I, II, and III only
Answer: C
NEW QUESTION # 182
Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?
1. Physically inspect all assets on the organization's property.
2. Select a sample department and physically inspect assets in the department.
3. Select a sample from the organization's records of physical assets and physically locate each asset.
4. Identify assets at a sample of locations and trace to the organization's records.
- A. I only
- B. III and IV only
- C. II and III only
- D. I and IV only
Answer: B
NEW QUESTION # 183
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 only.
- B. I and III only.
- C. III only.
- D. I, II, and III.
Answer: A
NEW QUESTION # 184
Which of the following would be a red flag that indicates the possibility of inventory fraud?
I.The controller has assumed responsibility for approving all payments to certain vendors.
II.
The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III.
Sales commissions are not consistent with the organization's increased levels of sales.
IV.
Payments to certain vendors are supported by copies of receiving memos, rather than originals.
- A. I and II only.
- B. I, III, and IV only.
- C. I, II, and IV only.
- D. II and III only.
Answer: C
NEW QUESTION # 185
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 and II only
- B. III and IV only
- C. I, II, III, and IV.
- D. I, II, and III only
Answer: C
NEW QUESTION # 186
Which of the following statements is true regarding the communication of audit engagement observations?
- A. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only
- B. Criteria, condition, cause, and effect must be communicated for material observations only
- C. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.
- D. Criteria, condition, cause, and effect must be communicated for all engagement observations.
Answer: D
NEW QUESTION # 187
Which of the following conditions are necessary for successful change management?
1.Decisions and necessary actions are taken promptly.
2.The traditions of the organization are respected.
3.Changes result in improvement or reform.
4.Internal and external communications are controlled.
- A. 2 and 4
- B. 2 and 3
- C. 1 and 3
- D. 1 and 2
Answer: C
NEW QUESTION # 188
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