IIA-CIA-Part2 Exam Practice Test Instant Access

Question 1

During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process.

Which of the following responses would be most effective to mitigate this risk?

AThe treasury supervisor establishes a threshold for amounts on bank statements to be reconciled against data in the system

BThe treasury analyst performs a daily reconciliation of al bank statements obtained via email against data in the system

CThe treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.

DThe treasury supervisor seeks an annual confirmation from the bank regarding the bank statements processed within a year

Answer : C

Question 2

A chief audit executive (CAE) a developing a work program for an upcoming engagement that will review an organization's small contracting services. When of the following would the CAT need to consider most when developing the work program?

AThe contracting department's staffing changes within the last year

BThe certifications held by the internal auditors assigned to the engagement

CThe internal audit activity's increase n budget and staffing for the year

DThe organization's recent changes to how it processes payments

Answer : D

Question 3

To which of the following aspects should the chief audit executive give the most consideration while communicating an identified unacceptable risk to management?

AThe organization's attitude to hierarchy

BThe organization's whistleblowing strategy

CThe organization's ongoing risk monitoring process

DThe organization's risk management policy

Answer : D

Question 4

What is the primary purpose of creating a preliminary draft audit report?

ATo save time during final report writing

BTo meet the Standards requirement for developing a draft report prior to issuing a final report

CTo use as a tool for communicating with management of the area under review.

DTo require that management implements solutions to issues identified during the engagement

Answer : C

Question 5

Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

AStrategic plans reflect the organization's business objectives and overall attitude toward risk.

BStrategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.

CStrategic plans are likely to show areas of weak financial controls.

DThe strategic plan is a relatively stable document on which to base audit planning.

Answer : A

Question 6

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 7

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

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