CIA Exam Part 2 Practice Exam Prep
CIA EXAM PART 2 PRACTICE EXAM PREP NEWEST 2026/2027
ACTUAL EXAM COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
A bakery chain has a statistical model that can be used to predict daily sales at
individual stores based on a direct relationship to the cost of ingredients used and
an inverse relationship to rainy days. What conditions would an internal auditor
look for as an indicator of employee theft of food from a specific store?
A. On a rainy day, total sales are greater than expected when compared to the
cost of ingredients used.
B. On a sunny day, total sales are less than expected when compared to the cost
of ingredients used.
C. Both total sales and cost of ingredients used are greater than expected.
D. Both total sales and cost of ingredients used are less than expected. - Correct
Answer-B: Assume COGS is consistent, based on the model, a sunny day would
produce an increase in sales, and therefore COGS would go up. However, we see
that Sales are down, and therefore COGS should go down, but the answer implies
that COGS stayed the same. This means that the risk is that theft is possible cause
A is wrong because the risk here is that there is a fictitious sale and not theft of
inventory
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, CIA Exam Part 2 Practice Exam Prep
C & D are irrelevant since the question clearly states that in the model that rainy
days are included in the model
What is most appropriate when conducting an interview during the course of a
fraud investigation?
A. Schedule the interview well in advance
B. Explain the detailed purpose to the interview
C. Assume the Interviewer is guilty
D. Have a witness present - Correct Answer-D. This is the best answer of the
choices provided.
A is wrong because, based on the question, the interview is ongoing, this might be
the best answer when preparing/scheduling an interview
C is wrong because you do not know if the individual is guilty
B is wrong because you do not want the interviewee to be guarded when you ask
questions.
When determining the nature, timing, and extent of follow up, the chief audit
executive considers all of the following factors except:
A. Significance of the reported observation or reccomendation, degree of effort,
and cost needed to correctthe reported conditon
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, CIA Exam Part 2 Practice Exam Prep
B. Impact that may result should the corrective action fail
C. Authority or responsibility of the person required to take corrective action
D. Complexity of the corrective action and time period involved - Correct Answer-
C- You care about the person responsible when thinking about the
COMMUNICATION, not the Nature, extent and timing of the follow up
B is a factor when you think about the nature, extent, and timing
n which of the following cases is it appropriate for an audit report to not contain
management's response either within the report or as an attachment?
A. Management's response to an audit report is generally not a requirement.
B. Internal controls were found to be properly designed and operating effectively
although operations are deemed inefficient.
C. There was insufficient time to obtain management's response during the draft
reporting process.
D. An internal audit report contains no observations. - Correct Answer-D.
Remember that Observations is another word for finding. If the audit report
contains no findings, than management would not have a response
A is incorrect because management response is required if there is a finding.
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, CIA Exam Part 2 Practice Exam Prep
Which of the following actions has the least influence on the chief audit
executive's development of an audit plan?
A. Input from senior management and the board.
B. An evaluation of the complexity of each audit engagement.
C. Changes in the organizations structure or budget.
D. An assessment of risk and exposures affecting the organization. - Correct
Answer-B. Complexity of an engagement will not influence the audit plan
Why should internal auditors develop a strong relationship with the external
auditors?
A. External auditors offer an additional layer of approval to internal auditors'
reports.
B. External auditors can help improve the effectiveness of internal control
sampling techniques.
C. External auditors can offer an independent and knowledgeable viewpoint.
D. External auditors can share information gained from work with similar clients. -
Correct Answer-C
While performing a follow-up of a concern about equipment-inventory tracking,
which course of action is not necessary for the auditor to take?
A. Ensure that the steps being taken resolve the condition disclosed by the initial
finding.
B. Ensure that controls have been implemented to prevent the issue from
occurring again.
4|Page
CIA EXAM PART 2 PRACTICE EXAM PREP NEWEST 2026/2027
ACTUAL EXAM COMPLETE 100 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
A bakery chain has a statistical model that can be used to predict daily sales at
individual stores based on a direct relationship to the cost of ingredients used and
an inverse relationship to rainy days. What conditions would an internal auditor
look for as an indicator of employee theft of food from a specific store?
A. On a rainy day, total sales are greater than expected when compared to the
cost of ingredients used.
B. On a sunny day, total sales are less than expected when compared to the cost
of ingredients used.
C. Both total sales and cost of ingredients used are greater than expected.
D. Both total sales and cost of ingredients used are less than expected. - Correct
Answer-B: Assume COGS is consistent, based on the model, a sunny day would
produce an increase in sales, and therefore COGS would go up. However, we see
that Sales are down, and therefore COGS should go down, but the answer implies
that COGS stayed the same. This means that the risk is that theft is possible cause
A is wrong because the risk here is that there is a fictitious sale and not theft of
inventory
1|Page
, CIA Exam Part 2 Practice Exam Prep
C & D are irrelevant since the question clearly states that in the model that rainy
days are included in the model
What is most appropriate when conducting an interview during the course of a
fraud investigation?
A. Schedule the interview well in advance
B. Explain the detailed purpose to the interview
C. Assume the Interviewer is guilty
D. Have a witness present - Correct Answer-D. This is the best answer of the
choices provided.
A is wrong because, based on the question, the interview is ongoing, this might be
the best answer when preparing/scheduling an interview
C is wrong because you do not know if the individual is guilty
B is wrong because you do not want the interviewee to be guarded when you ask
questions.
When determining the nature, timing, and extent of follow up, the chief audit
executive considers all of the following factors except:
A. Significance of the reported observation or reccomendation, degree of effort,
and cost needed to correctthe reported conditon
2|Page
, CIA Exam Part 2 Practice Exam Prep
B. Impact that may result should the corrective action fail
C. Authority or responsibility of the person required to take corrective action
D. Complexity of the corrective action and time period involved - Correct Answer-
C- You care about the person responsible when thinking about the
COMMUNICATION, not the Nature, extent and timing of the follow up
B is a factor when you think about the nature, extent, and timing
n which of the following cases is it appropriate for an audit report to not contain
management's response either within the report or as an attachment?
A. Management's response to an audit report is generally not a requirement.
B. Internal controls were found to be properly designed and operating effectively
although operations are deemed inefficient.
C. There was insufficient time to obtain management's response during the draft
reporting process.
D. An internal audit report contains no observations. - Correct Answer-D.
Remember that Observations is another word for finding. If the audit report
contains no findings, than management would not have a response
A is incorrect because management response is required if there is a finding.
3|Page
, CIA Exam Part 2 Practice Exam Prep
Which of the following actions has the least influence on the chief audit
executive's development of an audit plan?
A. Input from senior management and the board.
B. An evaluation of the complexity of each audit engagement.
C. Changes in the organizations structure or budget.
D. An assessment of risk and exposures affecting the organization. - Correct
Answer-B. Complexity of an engagement will not influence the audit plan
Why should internal auditors develop a strong relationship with the external
auditors?
A. External auditors offer an additional layer of approval to internal auditors'
reports.
B. External auditors can help improve the effectiveness of internal control
sampling techniques.
C. External auditors can offer an independent and knowledgeable viewpoint.
D. External auditors can share information gained from work with similar clients. -
Correct Answer-C
While performing a follow-up of a concern about equipment-inventory tracking,
which course of action is not necessary for the auditor to take?
A. Ensure that the steps being taken resolve the condition disclosed by the initial
finding.
B. Ensure that controls have been implemented to prevent the issue from
occurring again.
4|Page
