[Aug 02, 2023] IIA IIA-CIA-Part2 Real Exam Questions and Answers FREE
Pass IIA IIA-CIA-Part2 Exam Info and Free Practice Test
IIA-CIA-Part2 exam is a globally recognized certification that demonstrates a candidate's expertise in internal auditing practices. Practice of Internal Auditing certification is particularly valuable for individuals working in internal audit departments, as it enhances their credibility and validates their knowledge and skills. Practice of Internal Auditing certification exam is based on the International Professional Practices Framework (IPPF), which is a globally recognized framework for internal auditing.
NEW QUESTION # 101
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
1. Financial measures.
2. Internal business process measures.
3. Client satisfaction measures.
4. Innovation and learning measures.
- A. II, III, and IV only
- B. I only
- C. III and IV only
- D. II and IV only
Answer: A
NEW QUESTION # 102
Which of the following factors is least essential to a successful control self-assessment workshop?
- A. Facilitation training.
- B. Prior planning.
- C. Voting technology.
- D. Group dynamics.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 103
Which of the following would not include recommendations for process improvements?
- A. Due diligence engagement.
- B. Internal audit engagement.
- C. Consulting engagement.
- D. Forensic investigation.
Answer: A
NEW QUESTION # 104
Which of the following would not include recommendations for process improvements?
- A. Due diligence engagement.
- B. Internal audit engagement.
- C. Consulting engagement.
- D. Forensic investigation.
Answer: A
Explanation:
Section: Volume D
Explanation
NEW QUESTION # 105
Which of the following would be the best audit procedure to use to determine if a division's unusually high sales and gross margin for November and December were the result of fraudulently recorded sales?
- A. Trace a sample of shipping documents to related sales invoices to verify proper billing.
- B. Confirm accounts receivable balances with customers.
- C. Compare sales and gross margin totals with those of the previous ten months and the first month of the following year.
- D. Use regression analysis techniques to estimate the sales and cost of goods sold for November and December.
Answer: B
NEW QUESTION # 106
A limitation of using ratio analysis in an audit engagement is that it:
- A. Is useful only when comparisons can be made across other industries.
- B. Requires computer software in order to develop meaningful interpretations of data.
- C. Is an expensive method of testing.
- D. Often uses financial information provided by management which has not been reviewed for reliability and validity.
Answer: D
NEW QUESTION # 107
Which of the following would most likely include recommendations for process improvements?
* Due diligence engagement.
* Forensic investigation.
* Internal audit engagement.
* Consulting engagement.
- A. 1, 3, and 4 only
- B. 2, 3, and 4 only
- C. 1, 2, and 3 only
- D. 1, 2, and 4 only
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 108
Which of the following statements is true regarding the communication of audit engagement observations?
- A. Criteria, condition, cause, and effect must be communicated for all engagement observations.
- B. Criteria, condition, cause, and effect must be communicated for material observations only.
- C. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adquate compensating key controls.
- D. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only.
Answer: A
NEW QUESTION # 109
In addition to the internal auditor, which of the following parties should be present at an exit or closing conference?
1. Audit committee members.
2. The external auditor.
3. The management responsible for the areas covered by the engagement.
4. The chief executive officer.
- A. 1, 3, and 4 only
- B. 3 and 4 only
- C. 3 only
- D. 2 only
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 110
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Detection risk.
- B. Control risk.
- C. Sampling risk.
- D. Inherent risk.
Answer: D
NEW QUESTION # 111
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. Examine whether the sales department supervisor approves invoices for payment.
- C. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.
- D. Observe whether the purchase orders are sequentially numbered.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 112
An internal auditor is reviewing purchases made through the organization's corporate credit card program. Which of the following statements best describes a root cause of a deficiency?
- A. Sample testing found 10% non-compliance with the organization's business travel policy.
- B. A control to detect split purchases has not been activated in the credit card system.
- C. A personal computer was purchased from a non-approved vendor.
- D. Company policy limits card use to $500 per transaction.
Answer: B
NEW QUESTION # 113
According to the Standards, which of the following describes the condition attribute when applied to the observations and recommendations contained in the audit report?
- A. The reason for the difference between the expected state and the actual state.
- B. The risk or exposure the organization encounters because the actual state is not consistent with the criteria.
- C. The factual evidence that the internal auditor found in the course of the examination.
- D. The standards, measures, or expectations used in making an evaluation or verification.
Answer: C
NEW QUESTION # 114
Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?
I. Physically inspect all assets on the organization's property.
II. Select a sample department and physically inspect assets in the department.
III. Select a sample from the organization's records of physical assets and physically locate each asset.
IV.
Identify assets at a sample of locations and trace to the organization's records.
- A. II and III only
- B. I only
- C. I and IV only
- D. III and IV only
Answer: D
NEW QUESTION # 115
An internal audit activity is participating in the due diligence work for an acquisition that a
company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?
- A. Trace receiving reports issued before the period end to the related vendor invoices and accounts payable list.
- B. Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.
- C. Send confirmations, including zero-balance accounts, to vendors with whom the company normally does business.
- D. Examine supporting documentation of subsequent (after-period) cash disbursements and verify period of liability.
Answer: B
NEW QUESTION # 116
What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?
- A. Compromise.
- B. Consensus building.
- C. Spontaneous agreement.
- D. Majority voting.
Answer: B
NEW QUESTION # 117
An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?
- A. Report the amounts to the loan committee and leave it up to them to correct. Take no further follow-up action at this time and do not include the items in the engagement final communication.
- B. Examine the seven loans to determine if there is a pattern. Summarize amounts and include in the engagement final communication.
- C. Follow up with the appropriate vice president and include the vice president's acknowledgment of the situation in the engagement final communication.
- D. Determine the amount of the differences and make an assessment as to whether the dollar differences are material. If the amounts are not material, not in violation of government regulations, and can be rationally explained, omit the observation from the engagement final communication.
Answer: A
NEW QUESTION # 118
With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?
1. Business unit management.
2. Chief audit executive.
3. Audit committee.
4. Chief executive officer.
- A. 2 and 3 only
- B. 1 and 3 only
- C. 1 and 2 only
- D. 1, 2, 3, and 4
Answer: C
NEW QUESTION # 119
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IIA-CIA-Part2 (Practice of Internal Auditing) Certification Exam is one of the most respected certifications in the field of internal auditing. It is offered by the Institute of Internal Auditors (IIA), which is the global leader in the internal audit profession. Practice of Internal Auditing certification is designed to assess the knowledge and skills of internal auditors in the practice of internal auditing. It is a valuable credential for individuals who want to demonstrate their competence in this field.
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