IIA-CIA-Part2 Practice Questions

A.  

Appoint the chief audit executive as a member of the board.

B.  

Adopt written policies and procedures for the internal audit activity, approved by the board.

C.  

Ensure the chief audit executive reports administratively to the audit committee.

D.  

Establish the internal audit activity ' s position within the organization in an audit charter

A.  

The auditor did not violate the standard of objectivity because the presentation had no impact on the organization.

B.  

The auditor violated the principle of confidentiality by disclosing information about the organization without approval.

C.  

The auditor should have obtained permission before using the material, but did not violate the IIA Code of Ethics or Standards

D.  

The auditor breached the conflict of interest standard by accepting payment for travel costs

A.  

Enhanced capability to prevent frauds from occurring.

B.  

Greater assurance that procurement frauds will be detected in a timely manner

C.  

Improved capability of evaluating fraud risks within the organization.

D.  

Greater understanding of fraud through better evidence collection

A.  

A due diligence engagement.

B.  

An operational audit engagement.

C.  

A feasibility study engagement.

D.  

A risk and control self-assessment engagement.

A.  

Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B.  

Cultural impacts are less critical where the organization practices uniform polices around the globe.

C.  

Cross-cultural differences should always be handled by the staff of the same cultural background.

D.  

Local law enforcement should be involved as they are more familiar with the applicable local laws.

A.  

It would be an inefficient way for internal auditors to address multiple controls in the activity under review.

B.  

It would limit certain members of the internal audit team from being fully involved in the engagement.

C.  

It would be the most effective way for the internal audit team to obtain a detailed understanding of the processes and controls in the activity to be audited.

D.  

It would be an efficient way for the internal audit team to determine whether specified control activities are in place.

A.  

Potential legislation on privacy topics will be employed as a compliance target O Wire transfers that exceeded $10,000 in the last 12 months will be analyzed.

B.  

Both random and judgmental samplings will be used during the engagement

C.  

The probability of significant errors will be considered via risk assessment.

A.  

Testing the validity of information by following it backward to a previously prepared record

B.  

Testing the accuracy of the control by reperforming the task or process required

C.  

Soliciting and obtaining written verification of the accuracy from an independent third party

D.  

Testing the completeness of information forward from a record to a subsequently prepared document

A.  

A plan that focuses on furthering the independence of the internal audit activity.

B.  

A plan that ensures internal auditors collectively possess expertise in various fields to avoid outsourcing.

C.  

A plan based on individual preferences and proposals, which helps internal auditors achieve greater success.

D.  

A plan that focuses on filling gaps in the current skills needed to complete audit objectives.

A.  

The CAE previously undertook a consulting assignment in that area to improve processes.

B.  

A couple of years ago, the CAE performed accounting functions for the payroll department.

C.  

Prior to becoming the CAE, the CAE was the payroll manager.

D.  

The assurance review was initiated following issues identified during a consulting assignment requested by management.

A.  

Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.

B.  

Confirm the decision with management and document this decision in the audit file.

C.  

Document the issue in the audit file and follow up until the issues are resolved.

D.  

Initiate an assurance engagement on the unresolved issues.

A.  

Utility software

B.  

Generalized audit software

C.  

Audit expert systems.

D.  

integrated test facility

A.  

Obtain and review the organization’s policies and procedures to gain an understanding of the quality control checks performed on the gaming systems.

B.  

Perform unannounced onsite observations at factories to help determine how employees perform quality control checks of the gaming systems in real time.

C.  

Meet and discuss with the quality control supervisors at the facilities to obtain information about the processes related to the quality control of gaming systems.

D.  

Use the organization’s manufacturing documentation to create a flowchart that shows how the gaming systems are built to meet the established quality control standards.

A.  

It is particularly helpful to management when the organization is facing rapid change.

B.  

It is a more successful approach when adopted by mechanistic organizations.

C.  

it is more successful when goal-setting Is performed not only by management, but by all team members, including lower-level staff

D.  

it is particularly successful in environments that are prone to having poor employer-employee relations

A.  

The auditor should accommodate the request for information and brief management on significant preliminary observations as they develop.

B.  

The auditor should advise management that the requested information cannot be communicated until the engagement is complete and the results undergo a quality check by the engagement supervisor.

C.  

The auditor should share the requested information but clearly communicate that it is not appropriate for him to correct any observations based on further information that may be provided by management.

D.  

The auditor should partially accommodate the request, explaining that he can provide status updates regarding the engagement procedures and timeline but he is unable to provide information regarding preliminary observations.