IIA-CIA-Part2 Practice Questions

A.  

A due diligence engagement.

B.  

An operational audit engagement.

C.  

A feasibility study engagement.

D.  

A risk and control self-assessment engagement.

A.  

Entity-level controls

B.  

Application controls

C.  

General controls.

D.  

Transaction controls

A.  

An intrusion detection system

B.  

Use of firewalls

C.  

Regular security awareness training

D.  

Application hardening

A.  

Understanding management's risk tolerance.

B.  

Understanding business processes.

C.  

Determining the size of the audit team needed to perform the review.

D.  

Understanding organizational objectives.

A.  

Many of the areas explored by CSR are normally included in an audit universe or annual audit plan

B.  

Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.

C.  

Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.

D.  

Typically, operating management does not have a major role to play based on the public nature of reporting

A.  

1 and 2

B.  

1 and 4

C.  

2 and3

D.  

3 and 4

A.  

To build good relations with management

B.  

To help management develop more responsive and timely action plans

C.  

To formally report medium- and high-risk observations in writing

D.  

To improve the internal audit key performance indicators

A.  

Information obtained from historic audits and memos.

B.  

Risk and control registers or matrices.

C.  

Resource deployment plans and sampling methodologies.

D.  

Prior findings and management responses.

A.  

RACI (responsible, accountable, consult and inform) chart

B.  

Flowchart

C.  

SWOT{strengths. weaknesses opportunities, and threats) analysis

D.  

Workflow analysis

A.  

If it is an assurance engagement, accept the assignment because direct knowledge of the existing accounts payable processes will provide depth and add more value

B.  

If it is a consulting engagement, decline the assignment and ask to be reassigned, because in a consulting engagement the auditor must not assess operations for areas in which they were previously responsible.

C.  

if it is a consulting engagement, accept the assignment because direct knowledge of the existing accounts payable processes will provide depth and add more value

D.  

If it is an assurance engagement, accept the assignment because the chief audit executive had knowledge of the internal auditor's previous role when this engagement was assigned.

A.  

Perform benchmarking

B.  

Perform a trend analysis

C.  

Perform a ratio analysis

D.  

Perform observation to gather evidence

A.  

Providing in-house training to senior management regarding applicable laws and regulations.

B.  

Providing an assessment of the design adequacy of controls related to consumer privacy and confidentiality.

C.  

Providing an assessment of customer satisfaction with customer service provided by the organization.

D.  

Providing testing on the operating effectiveness of controls over the reliability of financial reporting.

A.  

It documents the audit steps and procedures to be performed.

B.  

It documents preliminary information useful to the audit team.

C.  

It documents events that could hinder the achievement of process objectives.

D.  

It documents existing measures that manage risks in the area under review.

A.  

For assurance engagements, internal auditors should plan to assess the effectiveness of all entity-level controls.

B.  

Poorly designed or deficient entity-level controls can prevent well-designed process controls from working as intended.

C.  

During engagement planning, internal auditors should not discuss the identified key risks and controls with management of the area under review, to prevent tipping off probable audit tests.

D.  

Reviewing process maps and flowcharts is an appropriate method for the internal auditor to identify all key risks and controls during engagement planning.

A.  

A survey with open-ended questions is weaker than a structured interview

B.  

A survey with closed-ended questions can produce quantifiable evidence

C.  

A survey's participants are likely to volunteer information that was not specifically requested

D.  

A survey, like inspections and confirmations are best used to test the operating effectiveness of controls