IIA-CIA-Part2 Practice Questions

A.  

if the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally

B.  

The fixed cost per unit will vary directly based on the number of bicycles produced during the production cycle.

C.  

The total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run.

D.  

if the number of bicycles produced is increased by 30 percent, the fixed cost per unit will decline.

A.  

Employees who are being paid more than then approved wages

B.  

Employees who get paid although their employment has expired

C.  

Employees who are related to one of the subcontractors

D.  

Employees who are physically present at the workplace but who do not perform the specified job duties

A.  

When the chief audit executive (CAE) concludes that management has accepted a level of risk that may be unacceptable to the organization, the CAE must discuss the matter with senior management. If the CAE determines that the matter has not been resolved, the CAE should seek the opinion from regulatory bodies.

B.  

The CAE should avoid issuing any interim reports, even for high-risk observations, prior to the issuance of the final written report to avoid leakage of sensitive information.

C.  

It is mandatory for the CAE to assess the potential risk to the organization, consult with senior management and legal counsel as appropriate, and control dissemination by restricting the use of the results prior to releasing them to parties outside of the organization if not otherwise mandated by legal, statutory, or regulatory requirements.

D.  

The board should always be given the final written internal audit reports at the conclusion of all internal audit engagements. Executive summaries should be avoided in all cases.

A.  

The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer

B.  

The board seeks senior managements recommendation before approving the annual salary adjustment of the CA

E.  

C.  

The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit act/vity.

D.  

The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline

A.  

Review notes on audit workpapers must be retained to provide a record of questions raised by the reviewer.

B.  

Audit workpaper documentation policies are reviewed and approved by the audit committee.

C.  

Management of the department being audited should review the prepared workpapers for accuracy.

D.  

Audit workpaper preparation contributes to the professional development of the internal audit staff.

A.  

A complete, accurate, and comprehensive account of engagement observations and recommendations.

B.  

Oversight of the coordination between the internal audit activity and independent outside auditors.

C.  

The internal audit activity's purpose, authority, responsibility, and performance relative to plan.

D.  

Management's assertions regarding the system of internal controls.

A.  

Vendor contracts.

B.  

Employee master list.

C.  

Payment records.

D.  

Purchasing policy.

A.  

Continue the engagement with the available staff, providing more hands-on supervision than usual

B.  

Limit the objectives and scope of the engagement to align them with the skills available among the current staff.

C.  

Cosource the performance of the engagement using personnel in the area that will be reviewed to supplement the knowledge of the staff and complete the engagement

D.  

Supplement the internal auditors assigned to the engagement by bringing onto the engagement team a consultant who is independent of the area under review and has the missing expertise

A.  

Operational management must determine the audit objective in cooperation with the internal auditor

B.  

The audit objective may be adjusted after the start of an engagement and it does not need to align with the assessed risks

C.  

The audit objective must consider the possibility of fraud and noncompliance

D.  

The audit objective may or may not consider the possibility of fraud depending on the assessed likelihood and impact

A.  

Persuade senior management to take appropriate action.

B.  

Cancel issuing the engagement report due to the assumed risks.

C.  

Accept senior management’s assumption of the risks.

D.  

Discuss the issue with the board for them to take appropriate action.

A.  

The AI program becomes self-reliant and no longer requires human assistance to perform tasks for the organization.

B.  

The AI program advancements allow for it to generate original images for use by content creators and other individuals.

C.  

The AI program captures images found online that are created and owned by individuals and other organizations.

D.  

The AI program will have to comply with the national regulation expected to come in force in two years' time.

A.  

Vouching vendor invoices to payments made.

B.  

Sorting invoices by purchase orders and comparing for successive duplicate invoices.

C.  

Comparing a random sample of vendor invoices to purchase orders.

D.  

Sorting payments by invoice to detect successive duplicate invoices.

A.  

Contract with the software vendor to provide an appropriate resource.

B.  

Ask for a knowledgeable resource from the IT department.

C.  

Make use of an external service provider.

D.  

Request audit resources through the external auditor.

A.  

Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.

B.  

Accept the audit engagement and use the engagement as an opportunity to develop the audit team's IT expertise while performing the audit work.

C.  

Temporarily hire an experienced and knowledgeable IT analyst from the organization's IT department to lead the audit.

D.  

Outsource the audit engagement to a reputable IT audit consulting firm.

A.  

Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization's control processes.

B.  

Quality assessments focus on the internal audit activity’s structure, relationships with stakeholders, compliance with the Standards, and internal audit staff proficiency.

C.  

in order to comply with the Standards, the internal audit activity must obtain an objective assessment of its processes and function at least once a year

D.  

Internal auditors completing internal assessments must demonstrate certification to perform quality assessments