IIA-CIA-PART2 Online Practice Questions and Answers

When conducting research, which of the following is most important?

A. Using computer databases or the Internet to find all relevant sources.

B. Providing documentation of the reference sources.

C. Presenting only those facts that support the conclusion.

D. Presenting all contrary views to balance the opinion.

Which of the following types of internal audit consulting engagements is an example of a facilitation service?

I. Conducting control self-assessment workshops.

II. Participating on standing committees.

III. Reviewing regulatory compliance.

IV.

Benchmarking.

V.

Estimating savings from outsourcing processes.

A.

I and IV only

B.

I, III, and IV only

C.

II, III, and V only

D.

I, II, III, IV, and V.

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 and III only

B.

II and IV only

C.

I, II, and III only

D.

I, III, and IV only

The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

A. Prices paid for selected materials with prices listed on related purchase orders.

B. Bids obtained for selected purchases with related purchase orders.

C. Vendors' current prices with prices listed on related purchase orders.

D. Approved vendor lists with bids obtained for selected purchases.

Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?

A. To ensure adequate control over the custody of working papers is exercised by the auditor.

B. To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.

C. To ensure that the work papers create background for subsequent reviews.

D. To ensure that the audit programs are followed by the auditor.

A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

A. Verify the period of liability of subsequent cash disbursements using related supporting documentation.

B. Send confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.

C. Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.

D. Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.

According to IIA guidance, which of the following are potential benefits of using an assurance map?

A. Indication of any gaps in assurance coverage, and improved relevance of assurance recommendations.

B. Identification of duplicate or overlapping assurance activities, and improved relevance of assurance recommendations.

C. Indication of gaps in assurance coverage, and enhanced effectiveness of assurance providers.

D. Enhanced effectiveness of assurance providers, and improved relevance of assurance recommendations.

An internal auditor and engagement client are deadlocked over the auditor's differing opinion with management on the adequacy of access controls for a major system. Which of the following strategies would be the most helpful in resolving this dispute?

A. Conduct a joint brainstorming session with management.

B. Ask the chief audit executive to mediate.

C. Disclose the client's differing opinion in the final report.

D. Escalate the issue to senior management for a decision.

An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group. Which of the following is the most appropriate role that she should assume when facilitating the workshop?

A. Express an opinion on the participants' inputs and conclusions as the assessment progresses.

B. Provide appropriate techniques and guidelines on how the exercise should be undertaken.

C. Evaluate and report on all issues that may be uncovered during the exercise.

D. Screen and vet participants so that the most appropriate candidates are selected to participate in the exercise.

In which of the following situations would an internal auditor consider the need to outsource competencies and skills?

A. During the inspection of a wind turbine, an internal auditor notices that some replaced parts look used. According to purchase documents, the parts still have a long lifespan.

B. The auditor believes that the audit client's actions contradict the organization's code of conduct. The audit client disagrees and says his actions are for the organization's benefit.

C. An audit team member is allocated to conduct an assurance engagement in the sales unit. However, the same auditor performed an assurance engagement in that area just one year prior.

D. During an inventory count, the auditor ascertained that some goods were missing. The audit client argues that the auditor does not understand how inventory should be counted.