[Mar 10, 2024] IIA-CIA-Part2 Exam Dumps 100% Same Q&A In Your Real Exam
IIA-CIA-Part2 Test Engine Dumps Training With 360 Questions
IIA-CIA-Part2 exam is one of the certification exams offered by the Institute of Internal Auditors (IIA). It is designed to test the knowledge and skills of internal auditors in the practice of internal auditing. IIA-CIA-Part2 exam is a part of the Certified Internal Auditor (CIA) certification program, which is globally recognized as the standard for internal auditors. The IIA-CIA-Part2 exam covers topics such as internal control, risk management, governance, and fraud risks, among others. It is a rigorous exam that requires a deep understanding of these topics and their application in real-world scenarios.
NEW QUESTION # 121
Which of the following is one of the differences between probability-proportional-to-size (PPS) and attribute sampling?
- A. Attribute sampling is affected by the monetary book value of the population PPS sampling is not
- B. PPS sampling a applied within the context of testing controls attribute sampling s not.
- C. PPS sampling s used to reach conclusions regarding monetary amounts, attribute sampling is not.
- D. PPS sampling is used to roach conclusions regarding rates of occurrence, attribute sampling is not.
Answer: D
NEW QUESTION # 122
Which of the following actions by management would reduce an employee's opportunity to commit fraud?
- A. Identifying consequences, such as termination, for fraudulent activities.
- B. Defining ethical behavior expectations in the company handbook.
- C. Eliminating bonuses tied to sales or other performance goals.
- D. Establishing physical controls over company assets.
Answer: D
NEW QUESTION # 123
During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?
- A. Schedule an audit of the museum's security systems to determine if theft is a problem.
- B. Monitor the system implementation and schedule a follow-up review once the new system is in place.
- C. Receive periodic feedback from museum staff regarding the status of the system implementation.
- D. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.
Answer: D
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 124
According to IIA guidance, when of the Mowing statements is true regarding an engagement supervisor's use of review notes?
- A. The engagement supervisor's review notes could be cleared from all final documentation after they are addressed
- B. The engagement supervisor's review notes must be maintained in a checklist separate from tie final documentation
- C. The engagement supervisor's review notes cannot be used as evidence of engagement supervision
- D. The engagement supervisor's review notes should be retained m the final documental or even after they are addressed.
Answer: A
NEW QUESTION # 125
A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?
- A. Compare credit reports with annual sales for a sample of customers.
- B. Compare the aging of outstanding receivables due from each customer.
- C. Compare the sales discounts offered to each customer.
- D. Compare the ratio of outstanding receivables to the authorized credit limit for each customer.
Answer: C
NEW QUESTION # 126
Which of the following is the first step in the process where auditors and clients work together to evaluate the clients' system of internal control?
- A. Identify objectives.
- B. Assess risks.
- C. Identify and assess controls.
- D. Develop questionnaires.
Answer: A
NEW QUESTION # 127
According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?
- A. There has been an increase in unanticipated requests for advisory work.
- B. The organization's audit universe is extensive and diverse.
- C. A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
- D. Previous work provided by the external service provider has been of great quality and value.
Answer: A
NEW QUESTION # 128
In reviewing the appropriateness of the minimum quantity level of inventory established by a department, an auditor would be least likely to consider:
- A. Stockout costs, including lost customers.
- B. Optimal order sizes determined by an economic order quantity model.
- C. Seasonal variations in forecasting inventory demand.
- D. The potential for obsolescence of inventory items.
Answer: B
NEW QUESTION # 129
While preparing the annual audit plan, the newly assigned chief audit executive (CAE) learns that the organization has not yet implemented a risk framework. Which of the following would be the most appropriate action for the CAE to take regarding potential engagements?
- A. Use the previous three-year audit plan to extrapolate potential engagements for the upcoming year's schedule of engagement.
- B. Consult with senior management and the board and make adjustments regarding risk.
- C. Review all outstanding recommendations from prior audit engagements and focus on them in the upcoming year.
- D. Prioritize the engagements that were not done in previous years and schedule them for the upcoming year.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 130
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I.Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II.
Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
Verify that the change orders were properly approved by management.
- A. I only.
- B. III only.
- C. I and II only.
- D. I and III only.
Answer: C
NEW QUESTION # 131
In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?
- A. Recomputation, though highly valid, is limited in usefulness due to its limited scope.
- B. The validity of confirmations varies directly with the independence of the party receiving the confirmation.
- C. The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.
- D. Internally created documentary evidence is considered less valid than externally created documentary evidence.
Answer: C
NEW QUESTION # 132
According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?
- A. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
- B. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.
- C. The exit conference provides only anticipated results for inclusion in the final audit communication.
- D. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
Answer: C
NEW QUESTION # 133
Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?
- A. Select a sample of invoices paid during the past month and trace them to appropriate vendor accounts.
- B. Use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. Select a sample of those invoices and trace to supporting documents such as receiving reports.
- C. Select a sample of payments made during the year and investigate each one for approval.
- D. Select a sample of receiving reports representative of the period under investigation and trace to approved payment. Note any items not properly processed.
Answer: B
NEW QUESTION # 134
According to IIA guidance which of the following statements is true regarding the annual audit plan?
- A. The CAE may make adjustments to the annual audit plan as needed without senior management or board approval.
- B. The annual audit plan should only be adjusted in response to problems with resourcing, scope, and data availability.
- C. The chief audit executive (CAE) may incorporate risk information, including risk appetite levels from management for the audit plan at her discretion.
- D. In an immature risk management environment it is preferable for the CAE to rely solely on her judgment regarding risk identification and assessment to develop the audit plan.
Answer: C
NEW QUESTION # 135
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 offer an independent and knowledgeable viewpoint.
- D. External auditors can share information gained from work with similar clients.
Answer: C
NEW QUESTION # 136
Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?
I. Physically inspect all assets on the organization's property.
II. Select a sample department and physically inspect assets in the department.
III. Select a sample from the organization's records of physical assets and physically locate each asset.
IV. Identify assets at a sample of locations and trace to the organization's records.
- A. II and III only
- B. I and IV only
- C. I only
- D. III and IV only
Answer: D
NEW QUESTION # 137
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