Use Real IIA-CIA-Part2 Dumps - IIA Correct Answers updated on 2023
Certified Internal IIA-CIA-Part2 Exam Practice Dumps
NEW QUESTION # 47
An internal auditor is asked to perform an assurance engagement in the organization's newly acquired subsidiary When developing the objectives tor the engagement which ot the following statements describes the most important items that the auditor needs to consider?
- A. The results of previous internal audits of the subsidiary the recommendations provided and whether the recommended actions have been implemented
- B. Organizational strategy objectives, risks, control framework and the expectations of stakeholders regarding the audit
- C. The qualifications and competencies of the subsidiary's management team and their understanding of risk and control
- D. Previous performance of the subsidiary specifically its financial results over the last three years and the outcome of external audit reviews
Answer: C
NEW QUESTION # 48
An organization has developed a large database that tracks employees, employee benefits, payroll deductions, job classifications, and other similar information. The internal auditor reviews the retirement benefits plan and determines that the pension and medical benefits have been changed several times in the past ten years. The auditor wishes to determine whether there is justification to perform further audit investigation. The most appropriate audit procedure would be to:
- A. Review reasonableness of retirement pay and medical expenses on a per-person basis stratified by which plan was in effect when the employee retired.
- B. Review the trend of overall retirement expense over the last ten years. If the retirement expense increased, it would indicate the need for further investigation.
- C. Use generalized audit software to select an attributes sample of retirement pay, and perform detailed testing to determine whether each person chosen was given the proper benefits.
- D. Use generalized audit software to select a monetary-unit sample of retirement pay, and determine whether each retired employee was paid correctly.
Answer: A
NEW QUESTION # 49
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?
- A. Consult with legal counsel about new privacy laws to establish appropriate criteria
- B. Solicit the services of a specialist information systems auditor
- C. Consider the detection risk of noncompliance with the laws
- D. Obtain the most current approved copies of the organization's privacy policy
Answer: A
NEW QUESTION # 50
During an audit of an ethics program, which of the following procedures are most appropriate to evaluate the effectiveness of the program?
Testing whether corrective actions taken on involved parties breaching the ethics program are adequate.
Testing whether all employees are mandated through policy to comply with the ethics program.
Testing whether all employees are required to confirm in writing their compliance with the ethics program.
Testing through surveys employee's level of understanding and commitment to the ethics program.
- A. 3 and 4 only
- B. 1 and 4 only
- C. 1 and 2 only
- D. 2 and 3 only
Answer: B
NEW QUESTION # 51
Which of the following is the least relevant when preparing the internal audit activity's annual engagement plan?
- A. A rotation of internal audit engagements selected on a time basis.
- B. The organization's current risk priority and exposure.
- C. Senior management's requests for internal audit engagements.
- D. Coordination with the audit plans of the external auditor.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 52
During a review of data privacy an internal auditor is tasked with testing management's identification and prioritization of critical data collected by the organization. Which of the following steps would accomplish this objective?
- A. Document and test a data inventory and classification program by determining the data classification levels and framework
- B. interview management to determine what types of data are collected and maintained
- C. Trace data from storage to the collection sources to determine how critical data is collected and organized
- D. Review a sample of data to determine whether the risk classification is reasonable
Answer: C
NEW QUESTION # 53
Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?
- A. To ensure that the work papers create background for subsequent reviews.
- B. To ensure that the audit programs are followed by the auditor.
- C. To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.
- D. To ensure adequate control over the custody of working papers is exercised by the auditor.
Answer: B
NEW QUESTION # 54
According to HA guidance, the chief audit executive is directly responsible for which of the following?
- A. Providing opportunities for all staff auditors to satisfy their professional development requirements
- B. Maintaining a quality assurance program even in the absence of management support
- C. Periodically reviewing and approving the internal audit charier
- D. Establishing the objectives scope and plan for each engagement
Answer: C
NEW QUESTION # 55
Monetary-unit sampling is most useful when the internal auditor:
- A. Is concerned with overstatements.
- B. Expects to find several material errors in the sample.
- C. Is testing the accounts payable balance.
- D. Cannot cumulatively arrange the population items.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 56
In which of the following cases is it appropriate for an audit report to not contain management's response either within the report or as an attachment?
- A. Internal controls were found to be properly designed and operating effectively although operations are deemed inefficient.
- B. Management's response to an audit report is generally not a requirement.
- C. There was insufficient time to obtain management's response during the draft reporting process.
- D. An internal audit report contains no observations.
Answer: D
NEW QUESTION # 57
Which of the following is a detective control for managing the risk of fraud?
- A. Receipts for employee expenses.
- B. Awareness of prior incidents of fraud.
- C. Contractor non-disclosure agreements.
- D. Verification of currency exchange rates.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 58
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. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- B. Recommend to the chief audit executive that a fraud investigation be started.
- 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
Explanation:
Section: Volume C
NEW QUESTION # 59
When interrogating an individual who is suspected of fraud, it is appropriate to:
- A. Start the interview with questions to which the interviewer already knows the answer.
- B. Discontinue questioning once the individual has confessed to the fraud.
- C. Tell the individual that any information disclosed in the interrogation will not be disclosed outside of the company.
- D. Prepare a list of questions prior to the interrogation and strictly adhere to the list.
Answer: A
NEW QUESTION # 60
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?
- A. Ask the credit manager about the effectiveness of the function.
- B. Observe the process.
- C. Review the trend in receivables write-offs.
- D. Check for evidence of credit approval on a sample of customer orders.
Answer: C
NEW QUESTION # 61
Management testimony of improper segregation of duties in the cash receipt process can be considered which of the following?
- A. Relevant
- B. Reliable
- C. Analytical
- D. Sufficient
Answer: B
NEW QUESTION # 62
Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?
- A. Testing.
- B. Evaluating findings.
- C. Reviewing internal controls.
- D. Determining the scope.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION # 63
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IIA-CIA-Part2 exam is designed to evaluate the candidate's expertise in the practice of internal auditing. IIA-CIA-Part2 exam consists of 100 multiple-choice questions that cover various topics, including internal control and risk management, internal audit engagement, conducting internal audit engagements, internal audit reporting, and governance. IIA-CIA-Part2 exam is computer-based and can be taken at authorized testing centers worldwide. Passing IIA-CIA-Part2 exam requires a score of 600 out of 800. Practice of Internal Auditing certification is valid for three years, and professionals must earn continuing education credits to maintain their certification.
IIA-CIA-Part2 (Practice of Internal Auditing) certification exam is a globally recognized certification offered by the Institute of Internal Auditors (IIA). Practice of Internal Auditing certification is specifically designed for individuals who want to demonstrate their knowledge and skills in the field of internal auditing. IIA-CIA-Part2 exam covers a broad range of topics including risk management, governance, fraud prevention, and internal control.
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