IIA-CIA-Part2 Free Exam Study Guide! (Updated 360 Questions)
IIA-CIA-Part2 Dumps for Certified Internal Certified Exam Questions and Answer
IIA-CIA-Part2 (Practice of Internal Auditing) Certification Exam is one of the most respected certifications in the field of internal auditing. It is offered by the Institute of Internal Auditors (IIA), which is the global leader in the internal audit profession. Practice of Internal Auditing certification is designed to assess the knowledge and skills of internal auditors in the practice of internal auditing. It is a valuable credential for individuals who want to demonstrate their competence in this field.
NEW QUESTION # 38
Production managers for a manufacturing company are authorized to prepare emergency purchase orders for raw materials. These manually prepared orders do not go through the purchasing department and do not require a receiving report. The managers forward the invoice and purchase order to the accounting department for payment. Which of the following internal controls would efficiently prevent abuse of this system?
- A. Institute a company policy requiring rotation of orders among several suppliers.
- B. Review the level of safety stock.
- C. Require a manual receiving report from the warehouse prior to payment.
- D. Forbid the use of emergency purchase orders.
Answer: C
NEW QUESTION # 39
According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?
- A. The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.
- B. The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.
- C. The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.
- D. Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.
Answer: A
NEW QUESTION # 40
During a payroll audit of a large organization, an internal auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:
- A. Recommend to the chief audit executive that a fraud investigation be started.
- B. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- C. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- D. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
Answer: C
NEW QUESTION # 41
After becoming aware of control weaknesses indicating that a fraud could have been committed, which of the following actions should an internal auditor take next?
- A. Notify external auditors of the suspicion that fraud has been committed.
- B. Issue a written report identifying the control weaknesses.
- C. Recommend that a fraud investigation be conducted involving internal auditors, lawyers, investigators, security personnel, and other specialists, as appropriate.
- D. Perform tests directed toward the identification of other fraud indicators.
Answer: D
NEW QUESTION # 42
An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I. Validate the completeness of the accounts payable files.
II. Examine the sample of vouchers in greater detail.
III. Increase the number of vouchers in the sample.
IV. Broaden the scope of the examination to include credits received by accounts payable.
- A. I, II, and IV only
- B. I and II only
- C. I, III, and IV only
- D. II and III only
Answer: D
NEW QUESTION # 43
Controls are implemented to:
- A. Mitigate risk and eliminate the potential for loss.
- B. Eliminate risk and eliminate potential for loss.
- C. Eliminate risk and reduce the potential for loss.
- D. Mitigate risk and reduce the potential for loss.
Answer: D
NEW QUESTION # 44
When assessing the risk associated with an activity, an internal auditor should:
- A. Provide assurance on the management of the risk.
- B. Modify the risk management process based on risk exposures.
- C. Design controls to mitigate the identified risks.
- D. Determine how the risk should best be managed.
Answer: A
NEW QUESTION # 45
According to the Standards, which of the following is an attribute when applied to the observations and recommendations contained in the audit report?
- A. Client accomplishments.
- B. Scope statements.
- C. Effect.
- D. Supportive information.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 46
In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:
- A. Activities and cost drivers.
- B. Current product cost structures.
- C. Information processing procedures.
- D. Internal control alternatives.
Answer: D
NEW QUESTION # 47
Why should internal auditors develop a strong relationship with the external auditors?
- A. External auditors can help improve the effectiveness of internal control sampling techniques.
- B. External auditors offer an additional layer of approval to internal auditors' reports.
- C. External auditors can share information gained from work with similar clients.
- D. External auditors can offer an independent and knowledgeable viewpoint.
Answer: D
NEW QUESTION # 48
According to HA guidance, which of the following statements regarding audit workpapers is true?
- A. Audit reports should include the workpapers as a reference for the audit conclusions.
- B. Ad-hoc communications with management of the area under review should be excluded from the workpapers.
- C. The internal auditor's workpapers are the primary reference for reported control deficiencies.
- D. Both draft and final versions of workpapers should be saved at the end of the engagement
Answer: D
NEW QUESTION # 49
In a review of an electronic data interchange application using a third-party service provider, the auditor should:
1. Ensure encryption keys meet International Organization for Standardization (ISO) standards.
2. Determine whether an independent review of the service provider's operation has been conducted.
3. Verify that only public-switched data networks are used by the service provider.
4. Verify that the service provider's contracts include necessary clauses, such as the right to audit.
- A. II and IV only
- B. II and III only
- C. I and IV only
- D. I and II only
Answer: A
NEW QUESTION # 50
An organization has a large number of vendors supplying goods to its various branches across the region. The code of conduct statements signed by the employees specify that the employees or their families will not sell goods to the organization. However, during the internal audit of a branch, the internal auditor suspected that some of the employees may be supplying goods to the organization contrary to the code of conduct. The chief audit executive has requested that a thorough review be completed to identify the potential employee vendors. Of the following tests, it would be least useful to compare [List A] with [List B].
[List A]
[List B]
- A. Dates of payments to vendors
Dates of salary payments to employees - B. Addresses of vendors from the vendor database
Addresses of employees from the employee database
D .Vendor names
Employee names - C. Vendor bank account numbers
Employee bank account numbers
Answer: A
NEW QUESTION # 51
During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:
- A. Identify areas of the treasury function that should be considered for potential engagement objectives.
- B. Report any high-risk exposures of the treasury function to management and the board.
- C. Comply with the internal audit charter and applicable regulatory requirements.
- D. Determine whether appropriate resources are present to carry out the treasury function.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 52
The chief audit executive's responsibility regarding control processes includes:
- A. Ensuring that the internal audit activity assesses all control processes annually.
- B. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
- C. Overseeing the establishment of internal control processes.
- D. Maintaining the organization's governance processes.
Answer: B
NEW QUESTION # 53
......
IIA-CIA-Part2: Practice of Internal Auditing exam is one of the most sought-after certifications by individuals looking for a career in internal auditing. Practice of Internal Auditing certification is offered by the Institute of Internal Auditors (IIA), a global organization that provides professional development, guidance, and certification to internal auditors worldwide. The IIA-CIA-Part2 exam is designed to test the candidate's knowledge, skills, and abilities in the practice of internal auditing.
Use Real IIA-CIA-Part2 Dumps - 100% Free IIA-CIA-Part2 Exam Dumps: https://www.dumpsmaterials.com/IIA-CIA-Part2-real-torrent.html
Realistic Verified IIA-CIA-Part2 exam dumps Q&As - IIA-CIA-Part2 Free Update: https://drive.google.com/open?id=1teoynTsqABE1jxTsCZ423aB1r1TTZfiy
