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Effective Study Techniques for the IIA IIA-CIA-Part2 Exam

Questions 11

Which of the following factors would be the most critical in determining which engagements should be included in the annual internal audit plan?

Options:

A.

Whether an audit is explicitly required by the internal audit charter

B.

The extent to which the work to be performed is an assurance or consulting engagement

C.

The organization's annual risk management strategy

D.

Risks that are identified by operations staff or senior management

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Questions 12

Which of the following should be described in the recognition element of a typical internal audit repot?

Options:

A.

Positive aspects of the process or area under review

B.

A brief synopsis of the process of area under review

C.

Outcomes and ratings of the process or area under review

D.

Report issuance and the communication process of the engagement.

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Questions 13

The chief audit executive was asked to define me internal audit activity s key performance indicators (KPIs) tor the upcoming year. The KPIs must measure efficiency and effectiveness. Which of the following is an example of a KPI that measures effectiveness?

Options:

A.

Internal audit reports are consistently submitted prior to the audit report deadline

B.

Post engagement surveys completed by management indicate a "meets or exceeds expectations" idling

C.

There is a significant reduction of travel costs per project over the next fiscal year

D.

Internal auditors identify a minimum number of issues and provide recommendations to address them for each audit

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Questions 14

An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of S1 million The chief audit executive (CAE) would be justified in reporting this situation to the organization's board under which of the tollowing circumstances'?

1. In the opinion of the CAE the level of residual risk assumed by senior management is too high

2. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales

3. The cost of modifying the sales system to include a preventive control is less than S100.000

Options:

A.

1 only

B.

3 only

C.

1 and 3 only

D.

1, 2, and3

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Questions 15

A corporate merger decision prompts the chief audit executive (CAE) lo propose interim changes to the existing annual audit plan to account for emerging risks Which of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan''

Options:

A.

Present the revised audit plan directly to the board for approval.

B.

Communicate with the chief financial officer and present the revised audit plan to the CEO tor approval

C.

Present the revised audit plan directly to the CEO for approval

D.

Communicate with the CEO and present the revised audit plan to the board for approval.

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Questions 16

A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products Recently quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?

Options:

A.

A risk assessment

B.

An operational audit

C.

A third-party audit

D.

A fraud investigation

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Questions 17

According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management's response to audit recommendations?

Options:

A.

Evaluate and verify management's response, and determine the need and scope for additional work.

B.

Evaluate and verify management's response, and establish timelines for corrective action by management.

C.

Oversee the corrective actions undertaken by management, and determine the need and scope for additional work.

D.

Oversee the corrective actions undertaken by management, and establish timelines for corrective action by management.

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Questions 18

Which of the following risk assessment approaches involves gathering data from work team representing different levels of an organisation?

Options:

A.

Surveys

B.

Management produced analysis 0

C.

Facilitated team workshops

D.

Weighted risk factors

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Questions 19

An internal auditor s examination of accounts receivable generates the following results:

IIA-CIA-Part2 Question 19

What is the projected misstatement for the population if ratio estimation is used?

Options:

A.

$84,000

B.

$238,095

C.

$700,000

D.

$2100.000

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Questions 20

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Options:

A.

Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B.

Cultural impacts are less critical where the organization practices uniform polices around the globe.

C.

Cross-cultural differences should always be handled by the staff of the same cultural background.

D.

Local law enforcement should be involved as they are more familiar with the applicable local laws.

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Exam Code: IIA-CIA-Part2
Exam Name: Practice of Internal Auditing
Last Update: Jul 24, 2024
Questions: 377

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