IIA-CIA-Part2 Exam Practice Test Instant Access

Question 1

When auditing an organization's cash-handling activates which of the following is the most reliable form of testimonial evidence an internal auditor can obtain?

ATestimony from the cashier who performs the processes being reviewed

BTestimony from me cashier's supervisor who knows how processes should be performed

CTestimony from a knowledgeable person who is independent of the cashiering duty

DTestimony from a manager who oversees all cashiering activities being reviewed

Answer : C

Question 2

An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation. Which of the following is the most appropriate conclusion for the auditor to include in the audit report?

AThe organization incurred excessive cost overruns that resulted in significant financial and legal risk to the project.

BThe organization experienced a potential conflict of interest

CThe organization had weaknesses in its review process which allowed questionable transactions with some vendors

DThe organization allowed the project to launch without assurance that all transactions were regularly approved

Answer : C

Question 3

Which of the following internal audit procedures commonly involves sampling?

AConfirmation and financial statement analysis

BReperformance and inspection

CVouching and tracing

DTrend analysis and benchmarking

Answer : B

Question 4

Which of the following statements is true regarding the audit objective for an assurance engagement?

AOperational management must determine the audit objective in cooperation with the internal auditor

BThe audit objective may be adjusted after the start of an engagement and it does not need to align with the assessed risks

CThe audit objective must consider the possibility of fraud and noncompliance

DThe audit objective may or may not consider the possibility of fraud depending on the assessed likelihood and impact

Answer : C

Question 5

Which of the following is an advantage of an internal audit activity coordinating with a management-defined risk universe?

AIncreased completeness, including risk categories like political, supplier, and social media.

BBusiness managers can identify and assess risks that occur within each category.

CThe internal audit activity can rely on management's risk assessment.

DOrganizationwide audits are required since risk events within categories occur in many different ways.

Answer : A

Question 6

The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?

ARefuse to accept the consulting engagement because it would be a violation of independence.

BCollaborate with the external auditor to ensure the most efficient use of resources.

CAccept the engagement but hire an external training specialist to provide the necessary expertise.

DAccept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.

Answer : C

Question 7

An internal auditor is asked to review a recently completed renovation to a retail outlet. Which of the following would provide the most reliable evidence that the completed work conformed to the plan?

AAn interview with the employee who performed the work

BAn analysis of purchasing and receiving documentation

CExistence of a signed completion document accepting the work

DA physical inspection of the retail outlet.

Answer : D

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