Full IIA-CIA-Part2 Practice Test and 360 unique questions with explanations waiting just for you!
Certified Internal Dumps IIA-CIA-Part2 Exam for Full Questions - Exam Study Guide
IIA-CIA-Part2 certification is an important credential for internal auditors who want to advance their careers and demonstrate their commitment to the profession. It is recognized globally as a mark of excellence in the field of internal auditing and is highly valued by employers. Practice of Internal Auditing certification provides internal auditors with the knowledge and skills they need to be effective in their roles and to contribute to the success of their organizations.
NEW QUESTION # 150
An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant.
They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:
- A. The risk management function.
- B. Plant management.
- C. A plant health and safety officer.
- D. The regulatory agency.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 151
As part of a preliminary survey of the purchasing function, an internal auditor reads the department's policies and procedures manual and concludes that the manual describes the processing steps clearly and contains an appropriate internal control design. The next engagement objective is to evaluate the operating effectiveness of internal controls. Which procedure would fulfill this objective most effectively?
- A. Perform a design test.
- B. Perform a compliance test.
- C. Perform an efficiency test.
- D. Perform a systems test.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 152
According to IIA guidance, which of the following activities is most likely to enhance stakeholders' perception of the value the internal audit activity (IAA) adds to the organization?
1.The IAA uses computer-assisted audit techniques and IT applications.
2.The IAA uses a consistent risk-based approach in both its planning and engagement execution.
3.The IAA demonstrates the ability to build strong and constructive relationships with audit clients.
4.The IAA frequently is involved in various project teams and task forces in an advisory capacity.
- A. 1 and 3
- B. 2 and 4
- C. 1 and 2
- D. 3 and 4
Answer: D
NEW QUESTION # 153
After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted. Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?
- A. The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified.
- B. The CAE should send the final report to operational and senior management and the audit committee.
- C. The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.
- D. The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.
Answer: A
NEW QUESTION # 154
According to the Standards, which of the following is least important in determining the adequacy of an annual audit plan?
- A. Cost effectiveness.
- B. Effective deployment.
- C. Sufficiency.
- D. Appropriateness.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 155
Which of the following is the correct ratio to use in calculating the dollar value of the population if the auditor is using ratio estimation?
Number of Items
Audited Value
Carrying Amount
Sample
300
$500,000
$480,000
Population
3,000
$5,000,000
- A. 0.96
- B. 10.00
- C. 0.10
- D. 1.04
Answer: D
NEW QUESTION # 156
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?
- A. Reassign information systems auditors to assist in implementing management's action plan.
- B. Assess the status of corrective action during a follow-up audit engagement after the action plan has been completed.
- C. Assess the effectiveness of corrections by reviewing statistics related to unplanned system outages, and denials of service.
- D. Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 157
An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software development services. Which of the following actions is most appropriate for the internal auditor to take?
- A. Disregard the potential conflict, because it is outside the scope of the audit assignment.
- B. Investigate the potential conflict of interest.
- C. Inform the audit supervisor.
- D. Inform the external auditors of the potential conflict of interest.
Answer: C
NEW QUESTION # 158
Which of the following is true regarding roles and responsibilities in risk management processes?
- A. Ownership of risks resides with the board.
- B. Setting strategic direction resides with senior management.
- C. Acceptance of residual risk resides with executive management level.
- D. Identifying, assessing, mitigating and monitoring activities on a continuous basis rests with the internal audit activity.
Answer: C
NEW QUESTION # 159
A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors: the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses:
Risk Reduction
Cost Savings
Changes
High (3)
Medium (2)
Low (1)
High (3)
Low (1)
High (3)
Low (1)
High (3)
Medium (2)
Medium (2)
Medium (2)
High (3)
If the organization has asked the CAE to consider the cost savings factor to be twice as important as any other factor, which engagements should the CAE pursue?
- A. 3 and 4 only
- B. 2 and 4 only
- C. 1 and 3 only
- D. 1 and 2 only
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 160
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?
- A. Prenumbered shipping documents.
- B. Accounts receivable transactions.
- C. Customer purchase orders.
- D. Prenumbered customer invoices.
Answer: A
NEW QUESTION # 161
Acceding to MA guidance, when of the Mowing strategies would like provide the most assurance to the chief audit executive (CAE) that the internal audit activity's recommendations are being acted upon?
- A. The CAE works with the engagement supervisor to monitor the recommendations issued to management for corrective action
- B. The CAF obtains a formal response from senior management regarding the corrective actions they plan to take w address the recommendations.
- C. The CAE develops a tracking system to monitor the stains of engagement recommendations reported to management for action
- D. The CAE communicates with impacted department managers to determine whether corrective actions have addressed engagement recommendations
Answer: C
NEW QUESTION # 162
Reviewing internal audit report drafts with clients is:
1. Required according to the Standards.
2. A form of courtesy.
3. Ethically mandated.
4. A form of validation.
- A. 3 and 4 only
- B. 2 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: B
NEW QUESTION # 163
Which sampling plan requires no additional sampling once the first error is found?
- A. Discovery sampling.
- B. Stop-or-go sampling.
- C. Attributes sampling.
- D. Stratified sampling.
Answer: A
NEW QUESTION # 164
Which of the following controls in a computerized consumer loan system of a major bank would be the least effective in detecting a fraudulent loan?
- A. System controls prevent supervisors from delegating their approval authority during vacation periods.
- B. Customer information is matched to payment data prior to funds disbursement.
- C. Loan approvals over a pre-determined limit must have management approval.
- D. All log-in accounts become inaccessible after three incorrect password attempts.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 165
An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?
- A. Discovery sampling.
- B. Mean-per-unit sampling.
- C. Attributes sampling.
- D. Probability-proportional-to-size sampling.
Answer: B
Explanation:
Section: Volume A
Explanation/Reference:
NEW QUESTION # 166
Which of the following would not be characteristic of control self-assessment implemented by an audit department?
- A. Auditors and business-unit employees work as a team.
- B. Participants discuss the control weaknesses that hinder the achievement of objectives.
- C. Auditors perform traditional audit tests to identify control weaknesses.
- D. An auditor usually facilitates the discussion during the workshop phase while another records comments for subsequent use.
Answer: C
NEW QUESTION # 167
Which role is not considered a change agent when an organization wants to implement structural changes?
- A. Independent consultant.
- B. Line management.
- C. Senior management.
- D. Shareholder.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION # 168
......
IIA-CIA-Part2 certification exam consists of 100 multiple-choice questions that must be completed within a time limit of two hours and forty-five minutes. IIA-CIA-Part2 exam covers a wide range of topics related to internal auditing, including internal control and risk management, governance and business ethics, communication, and audit tools and techniques. IIA-CIA-Part2 exam is conducted in English and is available in both online and paper-based formats.
Authentic Best resources for IIA-CIA-Part2 Online Practice Exam: https://actual4test.practicetorrent.com/IIA-CIA-Part2-practice-exam-torrent.html