IIA-CIA-Part2 Practice Questions

A.  

A condition-based action plan

B.  

A cause-based action plan.

C.  

A root cause-based action plan.

D.  

An effect-based action plan.

A.  

The financial interest the service provider may have in the organization.

B.  

The relationship the service provider may have had with the organization or the activities being reviewed.

C.  

Compensation or other incentives that may be applicable to the service provider.

D.  

The service provider ' s experience in the type of work being considered.

A.  

Information that is factual adequate and convincing

B.  

Information that is best attainable through the use of appropriate engagement techniques

C.  

Information that supports engagement objectives and recommendations

D.  

Information that helps the organization meet its goals

A.  

Detective compensating controls

B.  

Preventive compensating controls

C.  

Detective Key controls

D.  

Preventive key controls

A.  

The audit supervisor should include the new contracts in the finding for the final audit report.

B.  

The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.

C.  

The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.

D.  

The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

A.  

Coach management in responding to risks.

B.  

Develop risk management strategies for board approval.

C.  

Facilitate identification and evaluation of risks.

D.  

Evaluate risk management processes.

A.  

Proposing fine item recommendation lot the annual financial budget of the accounting department

B.  

Making recommendations regarding financial approval authority limits for the operations department

C.  

Validating whether employees are following established policies and procedures in the procurement department

D.  

Generating expense report metrics for employees in the finance department

A.  

Discovery sampling.

B.  

Stop-or-go sampling.

C.  

Haphazard sampling.

D.  

Stratified attribute sampling.

A.  

Communicate the workpaper review results to management of fie area under review to validate the final report

B.  

Update the final report in the file with any necessary corrections based on the workpaper review.

C.  

Discuss the workpaper review results with the staff auditor where appropriate as a leaning opportunity

D.  

Add the manager ' s review notes to the final documentation following the review

A.  

Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.

B.  

Verifying that the grantee ' s final report is in line with what was depicted in the initial budget request.

C.  

Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions

D.  

Interviewing employees of the corporate affairs department, which is responsible for charitable activities

A.  

Discuss the internal audit risk assessment including applicable risks and objectives with internal audit management

B.  

Perform a walk-through of the process under review to determine whether control wore operating, effectively

C.  

Identify when controls will be tested and the sampling method to be used based on control risk

D.  

Meet with operational management to team about any areas of concern and to agree on the engagement objectives

A.  

Contact the external auditor and provide all relevant documentation.

B.  

Report the finding to senior management in a timely manner, following the normal chain of command.

C.  

Meet with the local manager to obtain more information on the finding before taking further action.

D.  

Bypass the normal chain of command and contact the board directly to report the finding.

A.  

Complete a transaction walkthrough fiat focuses on the design and operation of financial reporting controls

B.  

Conduct interviews with senior management to obtain their input and insights regarding operational controls.

C.  

Perform a comprehensive review of the organization s existing policies and standard operating procedures.

D.  

Review the procurement process map w*h employees who carry out key activities to obtain their input and insights.

A.  

All requests for consulting engagements must be included in the annual internal audit plan

B.  

Assurance engagements must be included in the annual internal audit plan but there is no requirement to include consulting engagements

C.  

Consulting engagements do not need to be included m the annual internal audit plan unless requested by the board

D.  

The acceptance of proposed consulting engagements into the annual internal audit plan may depend on their ability to add value

A.  

internal auditors meet with operational management at each phase of the audit process.

B.  

Internal auditors adhere to The IIA ' s Code of Ethics.

C.  

Internal auditors work collaboratively with their engagement team.

D.  

Internal auditors complete a program of continuing professional development.