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IIA-CIA-Part2 Practice Questions

Internal Audit Engagement

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Total Questions : 747

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Question # 16

According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

Options:

A.  

The internal audit activity will assess the effects of changes in maintenance strategy on the availability of production equipment

B.  

The internal audit activity will inform management on the possible risks of moving the data warehouse to a cloud server maintained by a third party.

C.  

The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms

D.  

The internal audit activity will ensure equipment downtime risks have been managed in accordance with the internal policy.

Discussion 0
Question # 17

Which of the following best describes the risk contained in an initial public offering for a new stock?

Options:

A.  

Residual risk.

B.  

Net risk.

C.  

Inherent risk.

D.  

Underlying risk

Discussion 0
Question # 18

According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

Options:

A.  

The employee’s name listed on organization’s payroll is compared to the personnel records.

B.  

Payroll time sheets are reviewed and approved by the timekeeper before processing.

C.  

Employee access to the payroll database is deactivated immediately upon termination.

D.  

Changes to payroll are validated by the personnel department before being processed.

Discussion 0
Question # 19

Which of the following would be the most effective fraud prevention control?

Options:

A.  

Email alert sent to management for checks issued over S100.000.

B.  

installation of a video surveillance system in a warehouse prone to inventory loss

C.  

New hire training to explain fraud and employee misconduct.

D.  

Daily report that Identifies unsuccessful system log-in attempts

Discussion 0
Question # 20

According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

Options:

A.  

The number, experience, and availability of audit staff as well as the nature, complexity, and time constraints of the engagement.

B.  

The appropriateness and sufficiency of resources and the ability to coordinate with external auditors.

C.  

The number, proficiency, experience, and availability of audit staff as well as the ability to coordinate with external auditors.

D.  

The appropriateness and sufficiency of resources as well as the nature, complexity, and time constraints of the engagement.

Discussion 0
Question # 21

Which of the following approaches would best help an internal auditor determine whether a retailer database of 100,000 customers has nay duplicate accounts?

Options:

A.  

Stratifying the customer information

B.  

Extracting the customer information

C.  

Filtering the customer information

D.  

Sorting the customer information

Discussion 0
Question # 22

An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?

Options:

A.  

Batch controls.

B.  

Application controls

C.  

General IT controls.

D.  

Logical access controls

Discussion 0
Question # 23

Which of the following statements best demonstrates application of due professional care during an assurance engagement?

Options:

A.  

The engagement detected irregularities and noncompliance instances.

B.  

The engagement supervisor had no significant comments in the supervisory review.

C.  

The audit procedures were systematically planned: executed, and documented.

D.  

The engagement objectives were designed to assist the engagement client

Discussion 0
Question # 24

An internal auditor suspects that a program contains unauthorized code or errors. Which of the following would assist the internal auditor in this regard?

Options:

A.  

Utility software

B.  

Generalized audit software

C.  

Application software tracing and mapping

D.  

Audit expert systems

Discussion 0
Question # 25

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 # 26

During the planning stage of an assurance engagement, an internal auditor has been assigned to prepare a risk matrix. Which of the following should the internal auditor consider when attempting to identify process-level risks?

Options:

A.  

Possible tests

B.  

Possible scenarios

C.  

Possible controls

D.  

Possible samples

Discussion 0
Question # 27

When estimating the impact of an inherent risk, which of the following should internal auditors consider?

Options:

A.  

The probability and frequency of occurrence

B.  

Financial and nonfinancial factors related to the risk

C.  

The number of risks identified on the heat map

D.  

The residual risk following implementation of appropriate controls

Discussion 0
Question # 28

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity may provide risk management consulting?

1.There is a clear strategy and timeline to migrate risk management responsibility back to management.

2.The internal audit activity has the final approval on any risk management decisions.

3.The internal audit activity gives objective assurance on all parts of the risk management framework for which it is responsible.

4.The nature of services provided to the organization is documented in the internal audit charter.

Options:

A.  

1 and 4 only.

B.  

2 and 4 only.

C.  

1 and 3 only.

D.  

2 and 3 only.

Discussion 0
Question # 29

An internal audit activity plans its engagements based on an organization-wide risk assessment. According to IIA guidance, which of the following statements is true regarding the required frequency of the risk assessment?

Options:

A.  

The risk assessment must be performed at least quarterly.

B.  

The risk assessment must be performed at least annually.

C.  

The risk assessment must be performed at least once every five years, in alignment with the internal audit activity's quality assurance and improvement program.

D.  

There is no specific requirement; a risk assessment should be performed as needed to account for changes in the business environment.

Discussion 0
Question # 30

Which of the following offers the best explanation of why the auditor in charge would assign a junior auditor to complete a complex part of the audit engagement?

Options:

A.  

The senior auditors are unavailable, as they are currently working on other portions of the engagement

B.  

The auditor in charge believes that the junior auditor should obtain a specific type of experience.

C.  

The audit engagement has a tight deadline and the work must be completed timely.

D.  

The auditor in charge is unable to identify audit staff with all of the required skills needed to complete the engagement

Discussion 0
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