IIA-CIA-Part2 Exam Practice Test Instant Access

Question 1

An internal auditor completed a consulting engagement covering a recent advertising campaign. The audit client asked the auditor to forward a copy of the report to one of the three advertising agencies used by the organization. According to IIA guidance, which of the following statements is true regarding this request?

AThe internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.

BThe internal auditor may not communicate the results to this external party regardless of the engagement client's instruction.

CThe internal auditor may send the report and is required to include instructions for the advertising agency to limit further distribution and the use of results.

DThe internal auditor may only communicate the results verbally to the advertising agency and should not provide a hard copy.

Answer : A

Question 2

An internal auditor performed a test of controls and found that a statistically selected representative sample of recorded transactions within the account receivables ledger had an error rate that was within management expectations. The associated revenue account was outside the scope of the audit engagement. How should the conclusion to this engagement be reported?

AThe auditor should state that the error rate was within the selected confidence level.

BNegative assurance should be provided, as the associated revenue account was not examined.

CThe auditor should state that controls over the recording of transactions in the revenue account are operating effectively.

DPositive assurance could be provided for the effectiveness of the accounts receivable controls.

Answer : D

Question 3

an internal auditor to use when simulating transactions to test a billing application's processing integrity?

AGeneralized audit software.

BUtility software.

CIntegrated test facilities.

DAudit expert systems.

Answer : C

Question 4

Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

AA review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

BA review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

CA vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

DA review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

Answer : A

Question 5

Which of the following statements about including consulting engagements in the annual internal audit plan is true?

AAll requests for consulting engagements must be included in the annual internal audit plan

BAssurance engagements must be included in the annual internal audit plan but there is no requirement to include consulting engagements

CConsulting engagements do not need to be included m the annual internal audit plan unless requested by the board

DThe acceptance of proposed consulting engagements into the annual internal audit plan may depend on their ability to add value

Answer : D

Question 6

An internal auditor collected several employee testimonials Which of the following is the best action for the internal auditor to take before drawing a conclusion?

AEnsure the testimonials are well documented

BSubstantiate the testimonials with physical or documentary evidence

CCorroborate testimonials with the results from other soft control techniques

DReview the testimonials with the interviewed employees

Answer : B

Question 7

When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?

1. Add value.

2. Improve operations.

3. Provide assurance that the internal audit activity conforms with the Standards.

4. Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.

A1 only

B1 and 2 only

C1 and 3 only

D1, 2, 3, and 4

Answer : D

IIA Practice of Internal Auditing IIA-CIA-Part2 Exam Practice Test