IIA-CIA-Part2 Exam Questions Instant Access

Question 1

An internal auditor is planning to audit the organization's payroll function, which was recently outsourced. Which of the following is the most appropriate first step for the auditor?

AReview management's organ nationwide risk assessment

BUnderstand the objectives and strategies of the new arrangement

CRevise the scope of the audit engagement

DForm objectives for the audit engagement

Answer : B

Question 2

A senior IT auditor is performing an audit of inventory valuation. The auditor misinterprets the sampling results. Which of the following best describes this situation?

ASampling risk.

BControl risk.

CNonsampling risk.

DResidual risk.

Answer : C

Question 3

Which of the following describes (he primary reason why a preliminary risk assessment is conducted during engagement planning?

ATo identify the greatest risks organizationwide

BTo ensure that the engagement work program covers all risk areas

CTo ensure that risks identified during previous audits of the area have been adequately addressed

DTo ensure that significant risks are included in the engagement scope

Answer : D

Question 4

Which of the following best exemplifies having effective risk management and internal control processes?

ARelevant risk indicators and mitigation plans are in place

BAll risks are identified and assessed

CBusiness profitability is likely to be achieved

DRisk information is communicated to customers and suppliers

Answer : A

Question 5

Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?

ASampling risk.

BAudit risk.

CResidual risk.

DInherent risk

Answer : D

Question 6

According to IIA guidance, which of the following steps should precede the development of audit engagement objectives?

AIdentification of controls.

BScope establishment.

CRisk assessment.

DReview of resources.

Answer : C

Question 7

An internal auditor is conducting an initial risk assessment of an audit area and wants to assess management's compliance with privacy laws for safeguarding customer information stored on the organization's servers. Which course of action is appropriate for this phase of the engagement?

ASolicit the services of a specialist information systems auditor

BObtain the most current approved copies of the organization's privacy policy

CConsult with legal counsel about new privacy laws to establish appropriate criteria

DConsider the detection risk of noncompliance with the laws

Answer : B

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