IIA-CIA-Part2 Practice Questions

Which of the following internal audit activities is performed in the design evaluation phase?

In order to obtain background information on an assigned audit of data center operations an internal auditor administers control questionnaires to select individuals who have primary responsibilities within the process. Which of the following is a drawback of this approach?

An internal auditor reviewed bank reconciliations prepared by management of the area under review. The auditor noted that the bank statements attached did not have the

bank heading, logo, or address. Which of the following statements is true regarding this situation?

An internal auditor is assigned to validate calculations on the organization ' s billing application. As part of the test, the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?

Which of the following would best prevent phishing attacks on an organization?

At a construction company, an internal auditor is planning an audit of the company ' s process for designing and building grid connections The process involves customers making payments m three parts

• The first payment of 10% after approval of the customer s application

• The second payment of 70% prior to construction

• The third payment of 20% after construction is complete

Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?

A senior IT auditor is performing an audit of inventory valuation. The auditor misinterprets the sampling results. Which of the following best describes this situation?

In addition to gathering information, which of the following is a primary objective of a client interview conducted during the planning stage of an audit engagement?

Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?

1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.

2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.

3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.

4. Communicate to senior management a summary report on the status and adequacy of audit resources.

An internal auditor is assessing whether a vendor onboarding procedure is being followed in all business units. The procedure has been centrally designed and depicts activities and validations that must be performed at every step. Which of the following is the most suitable way to compile an internal control questionnaire?

Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate. When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?

1. The hedge documentation designating the hedge.

2. The spot exchange rate on the transaction date.

3. The terms of the forward contract.

4. The amount of fuel purchased.

Senior management requested that the internal audit activity perform a consulting project to assist in making a decision on a new software system. Which of the following would be used to determine the engagement objectives?

If an engagement supervisor discovers insufficient information to draw a conclusion in workpapers, which action should she take first?

The only internal auditor, who was part of a larger team of individuals trained in the testing and reading of the organization’s quality control equipment, has resigned. With a scheduled audit of the quality department not yet completed for this year, what alternative approach should the internal audit function take in this scenario?

Which of the following is one of the differences between probability-proportional-to-size (PPS) and attribute sampling?