IIA-CIA-Part2 Practice Questions

A.  

A criterion of the organization ' s accumulation of large travel advances

B.  

A condition of the organization ' s accumulation of large travel advances

C.  

A consequence of the organization ' s accumulation of large travel advances

D.  

A cause of the organization ' s accumulation of large travel advances

A.  

CSA allows management to have input into the audit plan.

B.  

CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

C.  

CSA can improve the control environment.

D.  

CSA increases control consciousness.

A.  

Review the auditor ' s job description

B.  

Create a checklist

C.  

Develop a control questionnaire

D.  

Prepare a fishbone diagram

A.  

An engagement supervisor provides equal supervision to junior auditors and senior auditors.

B.  

An engagement supervisor uses internal audit software.

C.  

The chief audit executive personally supervises each engagement.

D.  

The engagement supervisor and a team member meet regularly to discuss engagement progress.

A.  

Incorrect rejection risk.

B.  

Incorrect acceptance risk.

C.  

Tolerable misstatement risk

D.  

Anticipated misstatement risk

A.  

The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.

B.  

The auditor accepts management ' s explanation that the previously identified issue is adequately addressed by the new IT system, as management understands the concern and is most knowledgeable about the new system, and closes the outstanding issue.

C.  

The auditor advises management that replacing the IT system does not dismiss the prior obligation to implement the agreed action plan, and escalates the issue to senior management and the board.

D.  

The auditor requires management to provide details regarding the process for selecting the new IT system and whether other systems were evaluated, and closure of the issue would depend on the new information provided.

A.  

Include them in the workpapers for the engagement supervisor’s review.

B.  

Omit them from the workpapers.

C.  

There is no guidance on the inclusion of additional notes with workpapers.

D.  

Retain them after the engagement is completed.

A.  

To assess the efficiency and effectiveness of the accounting department.

B.  

To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.

C.  

To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.

D.  

To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.

A.  

There is no risk management and control process and risk management is solely tie responsibility of operational managers

B.  

The organisation’s code of conduct is distributed to employees each year however employees are not required to attest that they will operate In compliance with the code.

C.  

Reconciliation of planned board meeting agendas to meeting minutes finds that one meeting was canceled, and the agenda topics were covered at the following meeting.

D.  

The review of the five-year strategic plan shows that the details of the plan have not been dearly communicated to employees throughout the organization

A.  

The last available risk assessment.

B.  

Requests from senior management and the board.

C.  

The longest interval since the last examination of each audit universe item.

D.  

The auditable areas required by regulatory agencies.

A.  

An interview with the employee who performed the work

B.  

An analysis of purchasing and receiving documentation

C.  

Existence of a signed completion document accepting the work

D.  

A physical inspection of the retail outlet.

A.  

Tracing, because it would enable the auditor to verify quickly that the record counts were properly included in the compilation.

B.  

Inspection, because it would enable the auditor to verify how management enters the data into the application for processing.

C.  

Testing data, because it would enable the auditor to ensure that the application processes the transaction as described by management.

D.  

Reperformance, because it enables the auditor to verify that the application performed the calculation correctly.

A.  

Complete the risk assessment independently to prevent conflicts of interest with the function being reviewed.

B.  

Work with external auditors to ensure that the risk assessment includes items reflected on the independent auditor ' s report.

C.  

Work with management of the function being reviewed, as management would be most familiar with the business objectives and related risks.

D.  

Consult with the compliance department, which typically has a more comprehensive view of the organization.

A.  

Operational management has decried to weigh an audit issue against the organization ' s risk tolerance

B.  

A controls inaccurate operation has materially impacted the accuracy of the poor year ' s financial statements

C.  

Occurrences of asset misappropriation have been identified as a result of an ineffective operational control design

D.  

The controls that management performed to confirm compliance with health and safety standards were not systematically documented

A.  

The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider

B.  

The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer

C.  

The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the auditD, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry