Summer Sale Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 65pass65

IIA-CIA-Part2 Internal Audit Engagement is now Stable and With Pass Result | Test Your Knowledge for Free

Exams4sure Dumps

IIA-CIA-Part2 Practice Questions

Internal Audit Engagement

Last Update 4 days ago
Total Questions : 747

Dive into our fully updated and stable IIA-CIA-Part2 practice test platform, featuring all the latest CIA exam questions added this week. Our preparation tool is more than just a IIA study aid; it's a strategic advantage.

Our free CIA practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about IIA-CIA-Part2. Use this test to pinpoint which areas you need to focus your study on.

IIA-CIA-Part2 PDF

IIA-CIA-Part2 PDF (Printable)
$54.25
$154.99

IIA-CIA-Part2 Testing Engine

IIA-CIA-Part2 PDF (Printable)
$59.5
$169.99

IIA-CIA-Part2 PDF + Testing Engine

IIA-CIA-Part2 PDF (Printable)
$74.55
$212.99
Question # 166

When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisors review notes?

Options:

A.  

The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed

B.  

Management of the area under review must address the engagement supervisors review notes before the audit report can be finalized.

C.  

The chief audit executive must initial or sign the engagement supervisors review notes to provide evidence of appropriate engagement supervision.

D.  

Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program

Discussion 0
Question # 167

Which of the following is the primary reason an internal auditor would issue an interim report during an engagement?

Options:

A.  

To provide a status update on a short engagement to management of the area under review and to the audit supervisor.

B.  

To confirm agreement with preliminary observations and conclusions identified during the engagement.

C.  

To provide those responsible for the area under review with the opportunity to act on certain observations immediately.

D.  

To verify that the corrective actions required by senior management are completed as agreed.

Discussion 0
Question # 168

Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?

Options:

A.  

End the consulting engagement and report the results to management as planned

B.  

Report the significant control issues to senior management and the board and recommend corrective action

C.  

Mutually agree with the engagement client on corrective actions

D.  

Focus on the consulting engagement and schedule an assurance engagement next to address the control issues

Discussion 0
Question # 169

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 auditor look for as an indicator of employee theft of food from a specific store?

Options:

A.  

On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.

B.  

On a sunny day, total sales are less than expected when compared to the cost of ingredients used.

C.  

Both total sales and cost of ingredients used are greater than expected.

D.  

Both total sales and cost of ingredients used are less than expected.

Discussion 0
Question # 170

The audit manager asked the internal auditor to perform additional testing because several irregularities were found in the financial information. Which of the following would be the most appropriate analytical review for the auditor to perform?

Options:

A.  

Compare the firm ' s financial performance with organizations in the same industry

B.  

Interview all managers involved in preparing the financial statements

C.  

Perform a bank reconciliation to confirm the cash balance in the financial statements.

D.  

Trace each financial transaction to the original supporting document

Discussion 0
Question # 171

The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?

Options:

A.  

Refuse to accept the consulting engagement because it would be a violation of independence.

B.  

Collaborate with the external auditor to ensure the most efficient use of resources.

C.  

Accept the engagement but hire an external training specialist to provide the necessary expertise.

D.  

Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.

Discussion 0
Question # 172

Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?

Options:

A.  

To gain access to a wider variety of skills, competencies and best practices.

B.  

To complement existing expertise with a required skill and competency for a particular audit engagement.

C.  

To focus on and strengthen core audit competencies.

D.  

To provide the organization with appropriate contingency planning for the internal audit function.

Discussion 0
Question # 173

According to IIA guidance, which of the following statements are true regarding the internal audit plan?

1. The audit plan is based on an assessment of risks to the organization.

2. The audit plan is designed to determine the effectiveness of the organization ' s risk management process.

3. The audit plan is developed by senior management of the organization.

4. The audit plan is aligned with the organization ' s goals.

Options:

A.  

1 and 2 only

B.  

3 and 4 only

C.  

1, 2, and 4

D.  

1, 3, and 4

Discussion 0
Question # 174

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

Options:

A.  

The overall adequacy of the internal audit activity ' s resources.

B.  

The availability of guest auditors for the engagement.

C.  

The number of internal auditors used for the previous review of the same area.

D.  

The available resources with the specific skill set required.

Discussion 0
Question # 175

Following an IT systems audit, management agreed to implement a specific control in one of the IT systems. After a period, the internal auditor followed up and learned that management had not implemented the agreed management action due to the decision to move to another IT system that has built-in controls, which may address this risks highlighted by the Internal audit Which of the following Is the most appropriate action to address the outstanding audit recommendation?

Options:

A.  

The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.

B.  

The auditor accepts managements explanation that the previously identified issue is adequately addressed by the new IT system, as management understands the concern and is most knowledgeable about the new system, and closes the outstanding issue.

C.  

The auditor advises management that replacing the IT system does not dismiss the prior obligation to implement the agreed action plan, and escalates the issue to senior management and the board.

D.  

The auditor requires management to provide details regarding the process for selecting the new IT system and whether other systems were evaluated, and closure of the issue would depend on the new information provided.

Discussion 0
Question # 176

Prior to performing testing an internal auditor has determined that a primary process control failed due to design weakness. Which of the following actions should the auditor perform next?

Options:

A.  

Determine whether there are any compensating controls in place to reduce the nsk to an acceptable level, and discuss this matter with management of the business area to determine which corrective action is needed

B.  

Test the control anyway to determine the likelihood that the control was not performed property, and discuss this matter with management of the business area to determine which corrective action is needed

C.  

Conclude that the process control environment is weak, issue a finding on this conclusion and report this finding to management of the business area

D.  

Confer with a second internal auditor to determine whether the control failure is legitimate issue a finding on this conclusion and report this finding to management of the business area

Discussion 0
Question # 177

An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls. Which of the following is the most appropriate course of action for the internal audit team leader?

Options:

A.  

Defer the engagement until a system of internal control has been established

B.  

Change the scheduled engagement from assurance to consulting to help correct the shortcomings

C.  

Add a consulting component to the already scheduled assurance engagement

D.  

Seek the involvement of the external auditor to assist with improving the internal controls

Discussion 0
Question # 178

According to IIA guidance, which of the following typically serves as the basis for an engagement work program?

Options:

A.  

Past audit findings.

B.  

Scope and audit objectives.

C.  

Techniques and resources.

D.  

Stakeholders ' expectations.

Discussion 0
Question # 179

The internal audit manager has been delegated the task of preparing the annual internal audit plan for the forthcoming fiscal year. All engagements should be appropriately categorized and presented to the chief audit executive for review. Which of the following would most likely be classified as a consulting engagement?

Options:

A.  

Evaluating procurement department process effectiveness.

B.  

Helping in the design of the risk management program.

C.  

Assessing financial reporting control adequacy.

D.  

Reviewing environmental, social, and governance reporting compliance.

Discussion 0
Question # 180

Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization ' s ability to continue business. How would the chief audit executive respond?

Options:

A.  

Assume responsibility for quantifying and minimizing the residual risks to the organization.

B.  

Assess the level of financial risks that may affect the organization ' s stability.

C.  

Inform the regulatory agency about senior management ' s action and seek guidance.

D.  

Proceed with a consulting engagement to benchmark similar organizations ' business practices in the region.

Discussion 0
Get IIA-CIA-Part2 dumps and pass your exam in 24 hours!

Free Exams Sample Questions