IIA-CIA-Part2 Exam Questions Instant Access

Question 1

An internal auditor accessed accounts payable records and extracted data related to fuel purchased tor the organization's vehicles As a first step, she sorted the data by vehicle and used spreadsheet functions to identify all instances of refueling on the same or sequential dates She then performed other tests Based on the auditor's actions which of the following is most likely the objective of this engagement1?

ATo identify whether fuel was purchased for work-related purposes

BTo estimate future fuel costs for the organization's fleet of vehicles

CTo determine trends in average fuel consumption by vehicle

DTo determine whether the organization is paying more than the industry average for fuel

Answer : A

Question 2

According to an internal audit observation, the organization's rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts into the system. Which of the following component should be added to this observation?

ACriteria

BCause

CEffect

DCondition

Answer : B

Question 3

While reviewing warehouse inventory records, an internal auditor noticed that the warehouse has a surprisingly high number of products in storage. Over the past three years, the auditor had visited this particular warehouse numerous times for previous engagements and remembered that the warehouse was rather small. The auditor then decided to compare the square footage of the warehouse to the recorded number of products in storage. The auditor's action is an example of which of the following?

APerforming a reasonableness test.

BConducting a fraud investigation.

CConducting trend analysis.

DOperating with impaired objectivity.

Answer : A

Question 4

Which of the following has the greatest effect on the efficiency of an audit?

AThe complexity of deficiency findings.

BThe adequacy of preliminary survey information.

CThe organization and content of workpapers.

DThe method and amount of supporting detail used for the audit report.

Answer : B

Question 5

A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

AThe corporate risk register.

BThe strategic plan.

CInternal and external audit reports.

DThe board's meeting records.

Answer : A

Question 6

Which of the following statements is true regarding internal control questionnaires?

AInternal control questionnaires are useful m evaluating the effectiveness of standard operating procedures

Binternal control questionnaires provide reliable documents allowing internal auditors to cover many control procedures in little time

CInternal control questionnaires can be used by internal auditors as an interview guide

DInternal control questionnaires provide direct audit evidence which may need corroboration

Answer : C

Question 7

Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

AWhen internal auditors need to cover many control procedures using ICQs is generally less efficient than conducting observations and inspections

BIt is generally difficult for internal auditors lo compile appropriate ICQs for business activities that are governed by standardized operating procedures

CICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.

DIt is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management

Answer : A

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