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IIA-CIA-Part2 (Practice of Internal Auditing) Certification Exam is a comprehensive certification that provides individuals with a competitive edge in the field of internal auditing. IIA-CIA-Part2 exam covers a broad range of topics and is designed to test the candidate's knowledge of the internal auditing profession. Practice of Internal Auditing certification is highly respected in the profession and is recognized globally, making it a valuable asset for individuals seeking employment opportunities in the field of internal auditing.
To be eligible to take the IIA-CIA-Part2 Exam, candidates must have a minimum of two years of internal auditing experience or equivalent education or other professional experience. IIA-CIA-Part2 exam is computer-based and consists of 100 multiple-choice questions that must be completed in two and a half hours. A passing score of 600 or above out of a possible 800 is required to obtain the certification, and candidates must also adhere to the IIA's Code of Ethics and meet the Continuing Professional Education requirements to maintain their certification.
NEW QUESTION # 152
Which of the following is true of engagement recommendations?
I.Specific suggestions for implementation must be included.
II.
The internal auditor's observations and conclusions may serve as the basis.
III.
Actions to correct existing conditions or improve operations may be included.
IV.
Approaches to correcting or enhancing performance may be suggested.
- A. III only.
- B. I, III, and IV only.
- C. II, III, and IV only.
- D. I only.
Answer: C
NEW QUESTION # 153
An internal auditor has completed an audit of an organization's activities and is ready to issue a report. However, the client disagrees with the internal auditor's conclusions. The auditor should:
- A. Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.
- B. Withhold the issuance of the audit report until agreement on the issues is obtained.
- C. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
- D. Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.
Answer: C
NEW QUESTION # 154
An auditor used a questionnaire during an interview to gather information about the nature
of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation.
The primary deficiency with the above process is that:
- A. The engagement program was incomplete.
- B. Using a questionnaire precludes the auditor from documenting other information.
- C. A questionnaire was used in a situation where a structured interview should have been used.
- D. The auditor failed to consider the importance of the information offered.
Answer: D
Explanation:
Topic 2, Volume B
NEW QUESTION # 155
Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?
- A. Residual risk.
- B. Sampling risk.
- C. Inherent risk
- D. Audit risk.
Answer: C
NEW QUESTION # 156
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. Names and work titles of employees
- B. Location and route data of vehicles
- C. Average fuel consumption data of vehicles
- D. Description of responsibilities of business units.
Answer: C
NEW QUESTION # 157
An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?
- A. The contractor has subcontracted much of the work.
- B. The contractor will be paid on a cost-plus basis.
- C. The contract includes a right-to-audit clause.
- D. The estimated cost is high.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 158
In a payroll audit, a staff auditor suspects that signatures on some of the documents being sampled for examination are not authentic. What action should the auditor take before proceeding with the examination?
- A. Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.
- B. Suggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.
- C. Review the suspicious documents with the chief audit executive and seek advice concerning further examination.
- D. Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.
Answer: C
NEW QUESTION # 159
An organization's policies allow buyers to authorize expenditures up to $50,000 without any other approval.
Which of the following audit procedures would be most effective in determining if fraud in the form of payments to fictitious companies has occurred?
- A. Use generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.
- B. Use generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.
- C. Develop a snapshot technique to trace all transactions by suspected buyers.
- D. Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.
Answer: D
NEW QUESTION # 160
The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?
1. Use an external service provider.
2. Conduct a self-assessment with independent validation.
3. Arrange for a review by qualified employees outside of the IAA.
4. Arrange for reciprocal peer review with another CAE.
- A. 1, 2, and 3
- B. 2, 3, and 4
- C. 2 and 4
- D. 1 and 2
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 161
Which of the following statements generally true regarding audit engagement planning?
- A. Audit objectives should be general and do not change.
- B. Computer-assisted audit techniques are typically not useful during engagement planning
- C. Internal auditors should prepare a dented audit program for testing controls
- D. The best source tor detailed process information is senior management
Answer: A
NEW QUESTION # 162
Which of the following statements is true?
- A. An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.
- B. When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
- C. Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.
- D. If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
Answer: B
NEW QUESTION # 163
Because of an abundance of high priority requests from management, an internal audit activity no longer has the resources to meet all of its commitments contained in the annual audit plan. Which of the following would be the best course of action for the chief audit executive to follow?
- A. Continue with the plan and seek opportunities to adjust priorities and reallocate resources.
- B. Reassess the plan and either cancel or divert resources away from the lowest priority activities.
- C. Present a reassessment of the plan to the board and senior management for consideration.
- D. Advise the board immediately and seek their support for additional resources to meet the needs of the plan.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 164
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?
- A. Impact of and exposure to fraud.
- B. Existence of evidence of fraud.
- C. Management's risk appetite.
- D. Organizational structure.
Answer: A
NEW QUESTION # 165
Which of the following situations is most critical for the chief audit executive to report to the board?
- A. A staff internal auditor had difficulties completing a portion of the audit because management of the area under review was unwilling to cooperate and provide information timely.
- B. The internal audit activity was restructured, which resulted in a significant change in responsibilities among audit managers and supervisors for some audits
- C. The chief audit executive disagreed with the business unit manager's initial decision to accept a particular risk Management ultimately agreed to address the risk only after discussing the issue with senior management.
- D. The resignation of an internal audit manager during the year caused the chief audit executive to defer a number of audit engagements to the following year.
Answer: D
NEW QUESTION # 166
While conducting a payroll audit, an internal auditor in a large government organization found inadequate segregation in the duties assigned to the assistant director of personnel. When the auditor explained the risk of fraud, the assistant director became upset, terminated the interview, and threatened to sue the organization for defamation of character if the audit engagement was not curtailed. The auditor discussed the situation with the chief audit executive (CAE). The CAE should then:
- A. Add additional testing to determine whether other indicators of fraud exist.
- B. Provide a report to senior management recommending a fraud investigation.
- C. Continue the original engagement program as planned but include a comment about the assistant director's reaction in the engagement final communication.
- D. Curtail the audit engagement to avoid potential legal action.
Answer: A
NEW QUESTION # 167
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Certification Topics of IIA CIA Part 2 Exam
IIA CIA Part 2 Exam is a key to success. The exam is written in such a way that it tests the candidates on various aspects of IT. Passing the IIA CIA Part 2 Exam will earn you a certification and help you advance your career.
The IIA CIA Part 2 Exam covers a wide range of concepts, including but not limited to:
Communicating engagement results and monitoring progress (20%)
Performing the engagement (40%)
Managing the internal audit activity (20%)
Planning the engagement (20%)
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