DUMPS
BASE
EXAM DUMPS
IIA
IIA-CIA-Part2
28% OFF Automatically For You
CIA Exam Part Two: Practice of Internal Auditing
,1.An internal auditor accessed accounts payable records and extracted data related
to fuel purchased tor the organization's vehicles As a first step, she sorted the data by
vehicle and used spreadsheet functions to identify all instances of refueling on the
same or sequential dates She then performed other tests.
Based on the auditor's actions which of the following is most likely the objective of this
engagement1?
A. To identify whether fuel was purchased for work-related purposes
B. To estimate future fuel costs for the organization's fleet of vehicles
C. To determine trends in average fuel consumption by vehicle
D. To determine whether the organization is paying more than the industry average
for fuel
Answer: C
on
ti
ra
pa
2.An internal auditor tested whether purchase orders were supported by appropriately
re
approved purchase requisitions She sampled a population of purchase documents
P
m
and identified instances where purchase requisitions were missing However, she did
xa
E
not notice that n some cases purchase requisitions were approved by an
to
de
unauthorized person. ui
Which of the following risks most appropriately describes this situation?
G
e
at
A. Nonsampling risk
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B. Sampling risk
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C. Inherent risk
3)
.0
D. Due diligence risk
17
(V
Answer: A
ps
um
D
m
xa
3.An internal auditor submitted a report containing recommendations for management
E
to enhance internal controls related to investments.
2
t
ar
To follow up, which of the following is the most appropriate action for the internal
-P
IA
auditor to take?
-C
A
A. Observe corrective measures.
II
A
II
B. Seek a management assurance declaration.
C. Follow up during the next scheduled audit.
D. Conduct appropriate testing to verify management responses.
Answer: D
4.A chief audit executive (CAE) reviews the supervision of an internal audit
engagement.
Which of the following would most likely assure the CAE that the engagement had
adequate supervision?
A. The engagement supervisor has an open door pokey for audit team members to
,discuss concerns
B. The supervisor reviews weekly progress reports from the audit team members
C. The supervisor reviews and initials internal audit workpapers for the engagement
D. The supervisor meets periodically with management in the reviewed area to get
feedback during the engagement.
Answer: C
5.A corporate merger decision prompts the cruel audit executive (CAE) to propose
interim changes lo the existing annual audit plan to account for emerging risks.
When of the following is the most appropriate action for the CAE to take regarding the
changes made to the audit plan?
A. Present the revised audit plan directly to the board for approval
on
B. Communicate with the chief financial officer and present the revised audit plan to
ti
ra
pa
the CEO for approval
re
C. Present the revised audit plan directly to the CEO for approval
P
m
D. Communicate with the CCO and present the revised audit plan to the board for
xa
E
approval
to
de
Answer: D G
ui
e
at
im
6.Which of the following statements regarding the risk management process' support
lt
-U
of the internal audit activity is true?
3)
.0
A. The risk management process can provide more extensive internal audit services
17
(V
to the organization if it does not have an internal audit department
ps
B. The risk management process supports internal audit by evaluating whether critical
um
D
controls are adequate and effective.
m
xa
C. The risk management process can determine whether all significant risks have
E
been identified and are being treated.
t2
ar
D. The risk management process establishes an organization-specific documented
-P
IA
risk management framework.
-C
A
Answer: A
II
A
II
7.Which of the following internal control attributes should internal auditors consider
testing during a review of the board of directors?
A. The presence of an independent critical mass
B. The established philosophy and operating style of senior management
C. The articulated internal control objectives of the organization
D. The organization's employee recruiting and retention policies
Answer: A
, 8.When forming an opinion on the adequacy of management's systems of internal
control, which of the following findings would provide the most reliable assurance to
the chief audit executive?
• During an audit of the hiring process in a law firm, it was discovered that potential
employees' credentials were not always confirmed sufficiently. This process remained
unchanged at the following audit.
• During an audit of the accounts payable department, auditors calculated that two
percent of accounts were paid past due. This condition persisted at a follow up audit.
• During an audit of the vehicle fleet of a rental agency, it was determined that at any
given time, eight percent of the vehicles were not operational. During the next audit,
this figure had increased.
• During an audit of the cash handling process in a casino, internal audit discovered
control deficiencies in the transfer process between the slot machines and the cash
on
counting area. It was corrected immediately.
ti
ra
pa
A. 1 and 3 only
re
B. 1 and 4 only
P
m
C. 2 and 3 only
xa
E
D. 2 and 4 only
to
de
Answer: B G
ui
e
at
im
9.Which of the following statement is consistent with IIA guidance the use of
lt
-U
mentoring for internal auditors?
3)
.0
A. The member and the internal auditor should opt for informal meetings even if it
17
(V
means that no formal documentation will be created.
ps
B. The mentor relationship is usually not suitable for internal audit staff, as it does not
um
D
leas to professional development.
m
xa
C. The value of mentoring is derived primarily from the personal relationship between
E
the two parties involved, and the mentor’s level of relevant experience should not be
2
t
ar
a key factor.
-P
IA
D. The mentor should be the internal auditor’s supervisor to ensure that the auditor
-C
A
performance is assessed in a relevant and meaningful context.
II
A
II
Answer: D
10.According to an internal audit observation, the organization’s rules of record
management require all contracts to be registered and stored in a specific electronic
system. One subsidiary has thousands of client contracts on paper, which are kept in
the office because there are not enough assistants to scan the contracts into the
system.
Which of the following component should be added to this observation?
A. Criteria
B. Cause
BASE
EXAM DUMPS
IIA
IIA-CIA-Part2
28% OFF Automatically For You
CIA Exam Part Two: Practice of Internal Auditing
,1.An internal auditor accessed accounts payable records and extracted data related
to fuel purchased tor the organization's vehicles As a first step, she sorted the data by
vehicle and used spreadsheet functions to identify all instances of refueling on the
same or sequential dates She then performed other tests.
Based on the auditor's actions which of the following is most likely the objective of this
engagement1?
A. To identify whether fuel was purchased for work-related purposes
B. To estimate future fuel costs for the organization's fleet of vehicles
C. To determine trends in average fuel consumption by vehicle
D. To determine whether the organization is paying more than the industry average
for fuel
Answer: C
on
ti
ra
pa
2.An internal auditor tested whether purchase orders were supported by appropriately
re
approved purchase requisitions She sampled a population of purchase documents
P
m
and identified instances where purchase requisitions were missing However, she did
xa
E
not notice that n some cases purchase requisitions were approved by an
to
de
unauthorized person. ui
Which of the following risks most appropriately describes this situation?
G
e
at
A. Nonsampling risk
im
B. Sampling risk
lt
-U
C. Inherent risk
3)
.0
D. Due diligence risk
17
(V
Answer: A
ps
um
D
m
xa
3.An internal auditor submitted a report containing recommendations for management
E
to enhance internal controls related to investments.
2
t
ar
To follow up, which of the following is the most appropriate action for the internal
-P
IA
auditor to take?
-C
A
A. Observe corrective measures.
II
A
II
B. Seek a management assurance declaration.
C. Follow up during the next scheduled audit.
D. Conduct appropriate testing to verify management responses.
Answer: D
4.A chief audit executive (CAE) reviews the supervision of an internal audit
engagement.
Which of the following would most likely assure the CAE that the engagement had
adequate supervision?
A. The engagement supervisor has an open door pokey for audit team members to
,discuss concerns
B. The supervisor reviews weekly progress reports from the audit team members
C. The supervisor reviews and initials internal audit workpapers for the engagement
D. The supervisor meets periodically with management in the reviewed area to get
feedback during the engagement.
Answer: C
5.A corporate merger decision prompts the cruel audit executive (CAE) to propose
interim changes lo the existing annual audit plan to account for emerging risks.
When of the following is the most appropriate action for the CAE to take regarding the
changes made to the audit plan?
A. Present the revised audit plan directly to the board for approval
on
B. Communicate with the chief financial officer and present the revised audit plan to
ti
ra
pa
the CEO for approval
re
C. Present the revised audit plan directly to the CEO for approval
P
m
D. Communicate with the CCO and present the revised audit plan to the board for
xa
E
approval
to
de
Answer: D G
ui
e
at
im
6.Which of the following statements regarding the risk management process' support
lt
-U
of the internal audit activity is true?
3)
.0
A. The risk management process can provide more extensive internal audit services
17
(V
to the organization if it does not have an internal audit department
ps
B. The risk management process supports internal audit by evaluating whether critical
um
D
controls are adequate and effective.
m
xa
C. The risk management process can determine whether all significant risks have
E
been identified and are being treated.
t2
ar
D. The risk management process establishes an organization-specific documented
-P
IA
risk management framework.
-C
A
Answer: A
II
A
II
7.Which of the following internal control attributes should internal auditors consider
testing during a review of the board of directors?
A. The presence of an independent critical mass
B. The established philosophy and operating style of senior management
C. The articulated internal control objectives of the organization
D. The organization's employee recruiting and retention policies
Answer: A
, 8.When forming an opinion on the adequacy of management's systems of internal
control, which of the following findings would provide the most reliable assurance to
the chief audit executive?
• During an audit of the hiring process in a law firm, it was discovered that potential
employees' credentials were not always confirmed sufficiently. This process remained
unchanged at the following audit.
• During an audit of the accounts payable department, auditors calculated that two
percent of accounts were paid past due. This condition persisted at a follow up audit.
• During an audit of the vehicle fleet of a rental agency, it was determined that at any
given time, eight percent of the vehicles were not operational. During the next audit,
this figure had increased.
• During an audit of the cash handling process in a casino, internal audit discovered
control deficiencies in the transfer process between the slot machines and the cash
on
counting area. It was corrected immediately.
ti
ra
pa
A. 1 and 3 only
re
B. 1 and 4 only
P
m
C. 2 and 3 only
xa
E
D. 2 and 4 only
to
de
Answer: B G
ui
e
at
im
9.Which of the following statement is consistent with IIA guidance the use of
lt
-U
mentoring for internal auditors?
3)
.0
A. The member and the internal auditor should opt for informal meetings even if it
17
(V
means that no formal documentation will be created.
ps
B. The mentor relationship is usually not suitable for internal audit staff, as it does not
um
D
leas to professional development.
m
xa
C. The value of mentoring is derived primarily from the personal relationship between
E
the two parties involved, and the mentor’s level of relevant experience should not be
2
t
ar
a key factor.
-P
IA
D. The mentor should be the internal auditor’s supervisor to ensure that the auditor
-C
A
performance is assessed in a relevant and meaningful context.
II
A
II
Answer: D
10.According to an internal audit observation, the organization’s rules of record
management require all contracts to be registered and stored in a specific electronic
system. One subsidiary has thousands of client contracts on paper, which are kept in
the office because there are not enough assistants to scan the contracts into the
system.
Which of the following component should be added to this observation?
A. Criteria
B. Cause
