CIA EXAM PART 2.FINAL TEST 2026\2027.
In order to effectively elicit sensitive information from an employee during an audit engagement,
an auditor should:
A. Tell the employee a piece of information obtained from a coworker in a previous interview.
B. Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.
C. Explain that the auditor's reputation for integrity, which is vital to the auditor's business
success, would be seriously damaged if confidentiality were breached.
D. Point out that management has given the auditor full authority to conduct this interview.
C: This answer will give the interviewer confidence and that the internal auditor can be trusted
A is incorrect because you should not share information to another EE, especially if the information is
proprietary
B is just not a good answer and there is no reason for questions to be in a certain order
D Might intimidate the interviewer and therefore no useful information will probably not be obtained
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually
high number of customer complaints pertained to payments not being applied to the customers'
accounts. Which of the following would most likely be the reason for the high volume of
complaints?
A. An ineffective customer service department.
B. Poor controls in the invoice approval processes.
C. Check tampering by an employee.
D. Submission of fraudulent expense reports.
C: If payments are not being applied, a possible reason is that an EE is pocketing the payments and leaving
the customer account open
A is incorrect because it does specifically address thr reason for the customer complaints
,CIA EXAM PART 2.FINAL TEST 2026\2027.
B is incorrect because invoice approval is not the reason for payments not being applied
D is incorrect customers are not apart of the company
Which of the following factors would increase the confidence level in a variables sampling plan?
I A Larger Sample Size
II A Stratified Sample
III A larger Standard deviation
A) I and II
B) I and III
C) II and III
D) I, II, and III
A. The confidence level has no effect on the standard deviation. The confidence level only relates to the
sample size. As such, an increase in the confidence level increases the sample size, regardless if it is
stratified or not.
B, C.D include the Standard deviation
Which of the following factors could interfere with effective problem solving by the internal
auditor
I Reacting to previous experiences with the client
II Focusing only on the most likely cause
III Correcting symptoms of problems
Which of the following techniques could be used to evaluate the effectiveness of changes to the
operation of a computer help line
A. Benchmarking
B. baseline requirements
C. Walk Through
D. Quality Circles
B. Baseline requirements is a snapshot in time that represents an approved set of requirements that
been committed to a specific product release. Based on this definition, this is the most likely answer
A is incorrect because there is no external thing to compare the help line to
,CIA EXAM PART 2.FINAL TEST 2026\2027.
C. A walkthrough could help evaluate the effectiveness of controls, but it should be combined with
reperformance in order to be effective
D. Quality Circles is defined as a group of workers who the same or similar work. As such, this is not a
valid answer since it does not talk about the process
At the conclusion of the audit, a report was issued to the tresurer, CFO, President, and the Board.
A follow up review was performed. The Auditor shold provide the follow up report to which of the
following
I Treasurer
II CFO
III President
IV Board
A. I and II
B III and V
C III anf IV
D All of the above
D. All of the above. those that receive the report should be provided with the additional follow up
A Client Satisfaction survey for the internal audit engagement should be asked to assess which of
the following factors
I Audit team's knowledge of the audited area
II Usefulness of audit results
III quality of management of the internal audit activity
IV Clarity of the scope and objectives of the audit engagement
A. I and II only
B. II and IV only
C. I, II, and IV only
D. I III, and IV only
C. A survey would ask questions regarding the quality of management of the internal audit activity is due
to the business not knowing what the criteria for managemnet is. All other answers are applicable for a
survey
, CIA EXAM PART 2.FINAL TEST 2026\2027.
Which of the following tests must an IA perform to ensure EDI transactions are received and
translated accurately
I Computerized tests to assess Transaction reasonableness and validity
II Review of log books to ensure that transactions are logged upon receipt
III Edit checks to identify unusual Transactions
IV Verification of limitations on the authourity of users to initiate specific EDI transactions
I, II, and III
IV does not test accuracy, rather it tests a control
I is what i believe to be the primary test
II is a substantive procedure that tests the occurance of the transaction
III Edit checks are defined as a test that checks data to ensure validity and is used to verify data before
being processed. Under this lens, an argument can be made that this procedure can be used to gain
reasonable assurance that transactions are accurate. Edit Checks also test completeness and accuracy
The Best reason for the increased use of oral reports to supplement written reports is
A. Reduce the amount of testing required to support audit findings
B. Can be delivered in an informal manner without prep
C. Can be prepared using a flexible format and reduce the information included in the written
report
D. Permit auditors to counter arguments and provide additional information that the audience
may require
D. This is the most flexible answer and the one that makes sense based on the other answers
A is incorrect because Oral reporting does not affect the amount of testing
B is wrong because an IA should always be prepared
C is wrong because although it can be flexible, it will not reduce the information included in the written
report. Should be consistent
What is the responsibility of the internal auditor once a fraud investigation has been concluded?
A. Ascertain the extent to which fraud has been perpetrated
B. Notify the appropriate regualtory Agency
In order to effectively elicit sensitive information from an employee during an audit engagement,
an auditor should:
A. Tell the employee a piece of information obtained from a coworker in a previous interview.
B. Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.
C. Explain that the auditor's reputation for integrity, which is vital to the auditor's business
success, would be seriously damaged if confidentiality were breached.
D. Point out that management has given the auditor full authority to conduct this interview.
C: This answer will give the interviewer confidence and that the internal auditor can be trusted
A is incorrect because you should not share information to another EE, especially if the information is
proprietary
B is just not a good answer and there is no reason for questions to be in a certain order
D Might intimidate the interviewer and therefore no useful information will probably not be obtained
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually
high number of customer complaints pertained to payments not being applied to the customers'
accounts. Which of the following would most likely be the reason for the high volume of
complaints?
A. An ineffective customer service department.
B. Poor controls in the invoice approval processes.
C. Check tampering by an employee.
D. Submission of fraudulent expense reports.
C: If payments are not being applied, a possible reason is that an EE is pocketing the payments and leaving
the customer account open
A is incorrect because it does specifically address thr reason for the customer complaints
,CIA EXAM PART 2.FINAL TEST 2026\2027.
B is incorrect because invoice approval is not the reason for payments not being applied
D is incorrect customers are not apart of the company
Which of the following factors would increase the confidence level in a variables sampling plan?
I A Larger Sample Size
II A Stratified Sample
III A larger Standard deviation
A) I and II
B) I and III
C) II and III
D) I, II, and III
A. The confidence level has no effect on the standard deviation. The confidence level only relates to the
sample size. As such, an increase in the confidence level increases the sample size, regardless if it is
stratified or not.
B, C.D include the Standard deviation
Which of the following factors could interfere with effective problem solving by the internal
auditor
I Reacting to previous experiences with the client
II Focusing only on the most likely cause
III Correcting symptoms of problems
Which of the following techniques could be used to evaluate the effectiveness of changes to the
operation of a computer help line
A. Benchmarking
B. baseline requirements
C. Walk Through
D. Quality Circles
B. Baseline requirements is a snapshot in time that represents an approved set of requirements that
been committed to a specific product release. Based on this definition, this is the most likely answer
A is incorrect because there is no external thing to compare the help line to
,CIA EXAM PART 2.FINAL TEST 2026\2027.
C. A walkthrough could help evaluate the effectiveness of controls, but it should be combined with
reperformance in order to be effective
D. Quality Circles is defined as a group of workers who the same or similar work. As such, this is not a
valid answer since it does not talk about the process
At the conclusion of the audit, a report was issued to the tresurer, CFO, President, and the Board.
A follow up review was performed. The Auditor shold provide the follow up report to which of the
following
I Treasurer
II CFO
III President
IV Board
A. I and II
B III and V
C III anf IV
D All of the above
D. All of the above. those that receive the report should be provided with the additional follow up
A Client Satisfaction survey for the internal audit engagement should be asked to assess which of
the following factors
I Audit team's knowledge of the audited area
II Usefulness of audit results
III quality of management of the internal audit activity
IV Clarity of the scope and objectives of the audit engagement
A. I and II only
B. II and IV only
C. I, II, and IV only
D. I III, and IV only
C. A survey would ask questions regarding the quality of management of the internal audit activity is due
to the business not knowing what the criteria for managemnet is. All other answers are applicable for a
survey
, CIA EXAM PART 2.FINAL TEST 2026\2027.
Which of the following tests must an IA perform to ensure EDI transactions are received and
translated accurately
I Computerized tests to assess Transaction reasonableness and validity
II Review of log books to ensure that transactions are logged upon receipt
III Edit checks to identify unusual Transactions
IV Verification of limitations on the authourity of users to initiate specific EDI transactions
I, II, and III
IV does not test accuracy, rather it tests a control
I is what i believe to be the primary test
II is a substantive procedure that tests the occurance of the transaction
III Edit checks are defined as a test that checks data to ensure validity and is used to verify data before
being processed. Under this lens, an argument can be made that this procedure can be used to gain
reasonable assurance that transactions are accurate. Edit Checks also test completeness and accuracy
The Best reason for the increased use of oral reports to supplement written reports is
A. Reduce the amount of testing required to support audit findings
B. Can be delivered in an informal manner without prep
C. Can be prepared using a flexible format and reduce the information included in the written
report
D. Permit auditors to counter arguments and provide additional information that the audience
may require
D. This is the most flexible answer and the one that makes sense based on the other answers
A is incorrect because Oral reporting does not affect the amount of testing
B is wrong because an IA should always be prepared
C is wrong because although it can be flexible, it will not reduce the information included in the written
report. Should be consistent
What is the responsibility of the internal auditor once a fraud investigation has been concluded?
A. Ascertain the extent to which fraud has been perpetrated
B. Notify the appropriate regualtory Agency
