[Dec 30, 2021] Fully Updated Certified Internal (IIA-CIA-Part2) Certification Sample Questions
Latest IIA IIA-CIA-Part2 Real Exam Dumps PDF
IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION 300
Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales?
- A. Use discovery sampling, selecting transactions from invoices which should have freight charges added to them.
- B. Use difference estimation, selecting transactions from invoices which should have freight charges added to them.
- C. Use either test data or parallel simulation to test the computer application.
- D. Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.
Answer: C
NEW QUESTION 301
A company used simple regression analysis to analyze maintenance costs against machine hours (MH) for a 26-week period when the plant was in full operation. The regression yielded the following estimated cost function:
Maintenance Cost = $60 + $0.25/MH
The regression analysis also generated a coefficient of determination (R2), or goodness of fit, of 0.85. Which of the following statements regarding this regression analysis is appropriate?
- A. The $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.
- B. This regression can be used to determine the maintenance cost for any period at any activity level by substituting the machine hours in the equation.
- C. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.
- D. The coefficient of determination of R2 = 0.85 indicates that the goodness of fit is poor because the value is close to the maximum value of one.
Answer: C
NEW QUESTION 302
An employee in the sales department completes a purchase requisition and forwards it to the purchaser.
The purchaser places competitive bids and orders the requested items using approved purchase orders.
When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?
- A. Verify that approvals of purchasing documents comply with the authority matrix.
- B. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.
- C. Examine whether the sales department supervisor approves invoices for payment.
- D. Observe whether the purchase orders are sequentially numbered.
Answer: C
NEW QUESTION 303
During a review of performance measures in an organization's purchasing function, the preliminary survey indicates that most of the measures have been in use for some time. The internal auditor should:
- A. Perform benchmarking in order to verify that the measures being used are meaningful.
- B. Report that the measures being used are out-of-date and should be improved.
- C. Establish the history of the measures and reasons for use.
- D. Review the data that was used to develop the measures.
Answer: A
NEW QUESTION 304
According to IIA guidance, which of the following is true regarding audit supervision?
1. Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement.
2. Supervision should extend to training, time reporting, and expense control, as well as administrative matters.
3. Supervision should include review of engagement workpapers, with documented evidence of the review.
- A. 1 and 3 only
- B. 1, 2, and 3
- C. 2 and 3 only
- D. 1 and 2 only
Answer: B
Explanation:
Section: Volume E
Explanation
NEW QUESTION 305
Which of the following would be the most important reason for the chief audit executive (CAE) to use inputs from management strategy to update the audit universe?
- A. The CAE wants to determine internal audit resourcing requirements to cover the organization's major processes and activities over time.
- B. The audit charter requires the CAE to update the audit universe before embarking on the selection of potential audit engagements.
- C. The CAE wants to cover management planned activities for the upcoming year in the audit plan.
- D. The CAE wants to consider the organization's strategic plan including attitude toward risk and the degree of difficulty to achieving planned objectives.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 306
An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?
1. Division A's production level declined by 15 percent.
2. Division A could have sold more products than it produced.
3. Division A usually sells all of the products that it produces.
- A. III only
- B. I only
- C. II only
- D. I and II only
Answer: C
NEW QUESTION 307
An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group.
Which of the following is the most appropriate role that she should assume when facilitating the workshop?
- A. Evaluate and report on all issues that may be uncovered during the exercise.
- B. Provide appropriate techniques and guidelines on how the exercise should be undertaken.
- C. Screen and vet participants so that the most appropriate candidates are selected to participate in the exercise.
- D. Express an opinion on the participants' inputs and conclusions as the assessment progresses.
Answer: B
Explanation:
Section: Volume E
Explanation/Reference:
NEW QUESTION 308
When creating the internal audit plan, the chief audit executive should prioritize engagements based primarily on which of the following?
- A. The longest interval since the last examination of each audit universe item.
- B. Requests from senior management and the board.
- C. The last available risk assessment.
- D. The auditable areas required by regulatory agencies.
Answer: C
NEW QUESTION 309
According to the International Professional Practices Framework, which of the following would not be considered when performing an initial risk assessment in engagement planning?
- A. Management's methodology for defining risk criteria.
- B. Management's process for monitoring, reporting, and resolving risk issues.
- C. The reliability of management's assessment of risk.
- D. Risks in related activities relevant to the activity under review.
Answer: A
NEW QUESTION 310
Which of the following must an auditor establish in order to demonstrate that fraud has occurred?
- A. Existence of an internal control deficiency.
- B. Evidence of collusion.
- C. Monetary damage to the victim.
- D. The suspect's intent.
Answer: D
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION 311
Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?
1.Activities requested by management should be considered higher risk than those requested by the audit committee.
2.Activities with lower budgets can be as high risk as those with higher budgets.
3.The potential financial or adverse exposure should always be considered in the assessment of risk.
- A. 2 only
- B. 1 only
- C. 2 and 3 only
- D. 3 only
Answer: C
NEW QUESTION 312
When performing a compliance audit of the organization's outsourced services, which of the following is considered the primary engagement objective?
- A. Verifying that the organization does not have the appropriate knowledge and resources in-house.
- B. Evaluating the efficiency, effectiveness, economy, and sufficiency of the services provided.
- C. Assessing the provider's adherence to contract and regulatory requirements.
- D. Ensuring the provider has adequate internal controls in order to protect the quality of their service.
Answer: C
NEW QUESTION 313
Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?
- A. All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.
- B. Auditors must be given assignments based primarily upon their years of experience.
- C. All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.
- D. Tasks must be assigned to the audit team member who is most qualified to perform them.
Answer: A
NEW QUESTION 314
The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:
- A. Redesign costs can be minimized.
- B. The threat of lack of audit independence can be minimized.
- C. The cost of audit involvement can be minimized.
- D. There are clearly defined points at which to issue audit comments.
Answer: A
Explanation:
Section: Volume B
Explanation
NEW QUESTION 315
In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?
- A. The validity of confirmations varies directly with the independence of the party receiving the confirmation.
- B. Recomputation, though highly valid, is limited in usefulness due to its limited scope.
- C. Internally created documentary evidence is considered less valid than externally created documentary evidence.
- D. The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.
Answer: D
NEW QUESTION 316
Which of the following factors would not be considered in determining appropriate follow-up procedures?
- A. The potential consequences if the corrective action fails.
- B. The availability of funds in the audited department's budget to correct the reported condition.
- C. The effort and cost needed to correct the reported condition.
- D. The significance of the audit finding.
Answer: B
NEW QUESTION 317
Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
1. Facilitated meeting
2. Survey
3. Management-produced analysis
- A. II and III only
- B. I and III only
- C. I, II, and III
- D. I only
Answer: A
NEW QUESTION 318
According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?
- A. Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.
- B. Have employees annually sign a code of conduct requiring that they report any known violations.
- C. Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.
- D. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.
Answer: D
NEW QUESTION 319
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