The Realest Study Materials IIA-CIA-Part2 Dumps Updated Jul 09, 2023 [Q110-Q128]

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The Realest Study Materials IIA-CIA-Part2 Dumps Updated Jul 09, 2023

LATEST IIA-CIA-Part2 Exam Practice Material

Q110. Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
I. Facilitated meeting
II. Survey
III. Management-produced analysis

I only

I and III only

II and III only

I, II, and III

Q111. An organization’s board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?

Manage and coordinate risk management processes.

Audit risk management processes.

Become involved in risk oversight committees, monitoring activities, and status reporting.

Accept management’s responsibility for risk management without board approval.

Q112. Which of the following is a responsibility of the internal auditor once a fraud investigation has been concluded?

Ascertain the extent to which fraud has been perpetrated.

Notify the appropriate regulatory authorities regarding the outcome of the investigation.

Determine if controls need to be implemented or strengthened to reduce future vulnerability.

Implement controls to prevent future occurrences.

Q113. Which of the following statements is true regarding the final assurance engagement report issued to management?

Ratings are only used to assess the condition of an observation made by an internal auditor.

Audit findings may be communicated to management prior to issuance of the final approved audit report.

Communications must be relevant logical, and free from errors before they are disseminated.

The audit report must present the information in the following order (1) audit scope, (2) engagement objectives, and (3) engagement results

Q114. An internal auditor notices that a division has recorded uncharacteristically high sales and gross margins for the past three months and now suspects the division is reporting fictitious sales. Which course of action should the auditor follow to determine whether fraud has occurred?

Trace a sample of shipping documents to related sales invoices to verify proper billing.

Send accounts receivable balance confirmations to customers.

Compare the division’s sales and gross margins to those of the prior three-month period.

Estimate the sales and cost of goods sold for the three-month period by using regression analysis.

Section: Volume C

Q115. An internal audit manager is planning a contract compliance audit Which of the following should be done prior to developing the audit work program?

Select a sample of invoices for substantive testing

Review the contract for evidence of authorization

Document underlying reasons for noncompliance

Assess the inherent risk of paying duplicate invoices

Q116. Which of the following statements is false regarding audit criteria?

Audit criteria should be consistent across audit assignments.

Audit criteria should represent reasonable standards against which to assess existing conditions.

Audit criteria should provide flexibility but allow identification of nonadherence.

Audit criteria should equate to good or acceptable management practices.

Q117. The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.

Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.

Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.

Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.

Q118. Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

Report follow-up activities to senior management.

Implement follow-up procedures to evaluate residual risk.

Determine the costs of implementing the recommendations.

Evaluate the extent of improvements.

Q119. According to IIA guidance,when performing a compliance audit of data security standards for a large e- commerce retailer, which of the following would represent the least likely area of risk exposure?

Operational risks.

Change or configuration risks.

Access risks.

Physical security risks.

Q120. Which of the following is true about surveys?

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

A survey with closed-ended questions can produce quantifiable evidence

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

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

Q121. What is the most likely source of information for a detailed schedule of a company’s insurance policies in force?

Original journal entries found in the cash disbursements journal, along with supporting checks processed by the bank.

Policies and procedures governing insurance coverage.

The current fiscal year’s budget for insurance, together with the beginning balance of the prepaid insurance account.

The files containing insurance policies with various carriers.

Q122. Which of the following is an advantage of control self-assessment (CSA) over conventional auditing techniques?

CSA evaluates control activities and human resource practices.

CSA provides assurance about whether business objectives will be met.

CSA facilitates obtaining input from subject-matter experts efficiently.

CSA provides assurance that action will be taken to improve deficiencies.

Section: Volume B

Q123. Which of the following has the greatest effect on the efficiency of an audit?

The complexity of deficiency findings.

The adequacy of preliminary survey information.

The organization and content of workpapers.

The method and amount of supporting detail used for the audit report.

Section: Volume E

Q124. The chief audit executive (CAE) of a large retail operation believes that senior management has accepted a level of risk that exceeds the organization’s current risk tolerance with respect to a major expansion. The CAE plans to meet with senior management to discuss these concerns. According to IIA guidance, which of the following would be an appropriate course of action in preparation for this meeting?
Understand management’s basis for the decision.
Advise the board of the concern and upcoming meeting.
Ascertain which members of management have accepted the risk.
Determine if management has the authority to accept the risk.

1 and 2 only

1 and 4 only

2 and 3 only

3 and 4 only

Q125. Reviewing internal audit report drafts with clients is:
1.Required according to the Standards.
2.A form of courtesy.
3.Ethically mandated.
4.A form of validation.

1 and 2 only

2 and 3 only

2 and 4 only

3 and 4 only

Q126. What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?

Spontaneous agreement.

Consensus building.

Majority voting.

Compromise.

Q127. An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.

The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.

The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.

Senior management is accountable to the board for monitoring the system of internal controls.

Section: Volume D

Q128. According to the International Professional Practices Framework, which of the following should be excluded from a final communication for a performance audit engagement?

Recommendations and conclusions.

The internal auditor’s unbiased opinion.

Timely and relevant information.

Legal opinions related to illegal acts.

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The IIA-CIA-Part2 Exam covers a wide range of topics related to internal auditing, including governance and risk management, fraud risks and controls, internal control and audit planning, information technology and communication, and business processes. The exam is designed to test the candidate’s understanding of the principles and practices of internal auditing, as well as their ability to apply this knowledge in practical situations.

The IIA-CIA-Part2: Practice of Internal Auditing exam is one of the most sought-after certifications by individuals looking for a career in internal auditing. This certification is offered by the Institute of Internal Auditors (IIA), a global organization that provides professional development, guidance, and certification to internal auditors worldwide. The IIA-CIA-Part2 exam is designed to test the candidate’s knowledge, skills, and abilities in the practice of internal auditing.

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