[2022] New IIA-CIA-Part2 exam dumps Use Updated IIA Exam [Q133-Q156]

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[2022] New IIA-CIA-Part2 exam dumps Use Updated IIA Exam

Verified IIA-CIA-Part2 Dumps Q&As – IIA-CIA-Part2 Test Engine with Correct Answers

NO.133 An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?
1. Allow the auditor to decide whether to extend the audit engagement.
2. Determine whether the work already completed is sufficient to conclude the engagement.
3. Provide the auditor feedback on areas of improvement for future engagements.
4. Provide the auditor with instructions and directions to complete the audit.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

NO.134 —-
Which of the following topics must the internal audit staff discuss with management during the exit conference?
Issues identified during the audit.
Evaluation criteria used to select controls for testing.
Staff who were interviewed during the audit.
The reporting process for the draft and final report.

1 and 3 only.

1 and 4 only.

2 and 3 only.

2 and 4 only.

NO.135 Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.

Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.

Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.

Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

NO.136 Which of the following has the greatest effect on the efficiency of an audit?

The complexity of deficiency findings.

The adequacy of preliminary survey information.

The organization and content of workpapers.

The method and amount of supporting detail used for the audit report.

NO.137 An internal auditor has been asked to participate in an advisory capacity to assist a committee in redesigning the organization’s current financial reports to provide better information to management and the board. Which of the following actions on the part of the auditor would provide the greatest value to this project?

The internal auditor has a set of generic report templates from a former project and presents them to the group because they worked so well for the previous employer.

The internal auditor interviews each stakeholder and documents the requirements and preferences of each and creates a report template that meets as many of the requirements and preferences as possible.

The internal auditor gathers the stakeholder group and holds a brainstorming session where they generate report requirements and preferences and then rank them in order of importance.

The internal auditor undertakes a project to gather report templates and formats from other organizations in the same line of business and presents them all to the group for review.

NO.138 A report prepared by the internal audit activity contains several observations that disclose proprietary information regarding the organization’s manufacturing process. According to the International Professional Practices Framework, which of the following is the appropriate treatment for this report?

Distribute the report only to the board to protect disclosure.

Disclose and distribute this information in a separate report.

Remove the observations and report verbally to senior management.

Require a separate non-disclosure statement from each recipient.

NO.139 An internal audit activity implemented an integrated test facility to test payroll processing.
The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors can conclude that:

The system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.

All employees were correctly paid during the year and their pay was correctly computed.

The computer application and its control procedures were processing payroll transactions correctly during the past year.

All of the above.

NO.140 According to the Standards, which of the following is leastimportant in determining the adequacy of an annual audit plan?

Sufficiency.

Appropriateness.

Effective deployment.

Cost effectiveness.

NO.141 Which of the following actions is related to the preliminary survey process?

Determining if controls are effective.

Preparing the engagement work program.

Identifying the current controls.

Completing a detailed test of controls.

NO.142 When me internal audit activity does not have sufficient time to complete its usual root cause analysis which c4 the following is most appropriate?

The chief audit executive may recommend that management conduct further work to identify the root cause and address the issue

Internal auditors should finish the engagement without conducting the root cause analysis and draft the audit report, though the report would not be considered complete until the analysis is concluded

internal auditors must adjust their future engagement schedule to ensure that the root cause analysis is always performed before the engagement is concluded

Internal auditors should Instead perform a Pareto rule analysis

NO.143 Which of the following would most likely include recommendations for process improvements?
* Due diligence engagement.
* Forensic investigation.
* Internal audit engagement.
* Consulting engagement.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

NO.144 Which of the following is the correct ratio to use in calculating the dollar value of the population if the auditor is using ratio estimation?
Number of Items
Audited Value
Carrying Amount
Sample
300
$500,000
$480,000
Population
3,000
$5,000,000

0.10

0.96

1.04

10.00

NO.145 An internal auditor was assigned to conduct an inventory control and stock room area engagement. During the audit, the auditor observed that there were some items that have a shelf life expiration date requirement based on a certificate of conformance received with the product. The certificates of conformance are kept on file in the inventory area office and the expiration date is verified at the time the item is taken from stock. The auditor reviewed the items in the stock room and also on the production floor for the expiration dates to see if there was any expired product. All items with a shelf life requirement were found to be within the expiration date requirement. Which of the following recommendations would be appropriate?

Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.

Permit production staff the access to files where the certificates of conformity are kept, so they can choose the items with the closest expiration date.

Determine the cost of inventory for the items that have a shelf life and apply a new policy regarding inventory levels to be maintained (i.e., minimums, maximums, reorder points etc.).

Add to the product label a “use by date” line, enter the expiration at the time of receipt, and perform periodic inventory checks.

NO.146 A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?
1. The client manager and her superior.
2. Anyone who may object to the report’s validity.
3. Anyone required to take action.
4. The same individuals who receive the final report.

1 only

1 and 2 only

1, 2, and 3

1, 2, and 4

NO.147 According to IIA guidance, which of the following is least likely to be a key financial control in an organization’s accounts payable process?

Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.

Monitor amounts paid each period and compare them to the budget to identify potential issues.

Compare employee addresses to vendor addresses to identify potential employee fraud.

Monitor customer quality complaints compared to the prior period to identify vendor issues.

NO.148 An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors can conclude that:

The system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.

All employees were correctly paid during the year and their pay was correctly computed.

The computer application and its control procedures were processing payroll transactions correctly during the past year.

All of the above.

NO.149 Which of the following statements regarding the use of external contracted services by the chief audit executive (CAE) is false?

The CAE’s responsibility is not impaired by engaging an external expert.

The external expert could have a prior relationship with the audit client.

The audit report should not disclose the use of contracted services.

The expert should be directed by the objectives and scope of work.

NO.150 Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?

Tagging and tracing.

Generalized audit software.

Integrated test facility.

Spreadsheet analysis.

NO.151 According to the Standards, which of the following best describes the responsibility of the chief audit executive (CAE) for approving the final engagement report?
The CAE is responsible for obtaining management approval before issuing the final report.
The CAE has overall responsibility for the report but can delegate the review and approval of the report.
The CAE is responsible for obtaining senior management’s approval before releasing the final report.
The CAE is responsible for approving to whom and how the final report will be disseminated.

1 and 3 only

1 and 4 only

2 and 3 only

2 and 4 only

NO.152 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?

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.

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.

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.

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.

NO.153 Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?

An audit of the branch office is routinely scheduled every three years.

On-site follow-up of a remote branch may not be feasible due to travel costs.

Branch office management states that correction of the audit issue may take longer than expected.

The CAE and management agree that the corrective action taken to date is sufficient.

NO.154 Which of the following behaviors could represent a significant ethical risk if exhibited by an organization’s board?
1.Intervening during an audit involving ethical wrongdoing.
2.Discussing periodic reports of ethical breaches.
3.Authorizing an investigation of an unsafe product.
4.Negotiating a settlement of an employee claim for personal damages.

1 and 2

1 and 4

2 and 3

3 and 4

NO.155 According to the International Professional Practices Framework, which of the following should be excluded from a final communication for a performance audit engagement?

Recommendations and conclusions.

The internal auditor’s unbiased opinion.

Timely and relevant information.

Legal opinions related to illegal acts.

NO.156 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?

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.

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.

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.

IIA IIA-CIA-Part2 Exam Syllabus Topics:

Topic	Details
Topic 1	Prepare workpapers and documentation of relevant information to support conclusions and engagement results Determine the level of staff and resources needed for the engagement
Topic 2	Identify sources of potential engagements Describe policies and procedures for the planning, organizing, directing
Topic 3	Determine engagement procedures and prepare the engagement work program Establishing a Risk-based Internal Audit Plan
Topic 4	Identify a risk management framework to assess risks and prioritize audit engagements based on the results of a risk assessment Communicating and Reporting to Senior Management and the Board
Topic 5	Evaluate the relevance, sufficiency, and reliability of potential sources of evidence Develop checklists and risk-and-control questionnaires as part of a preliminary survey of the engagement area
Topic 6	Interpret administrative activities Use computerized audit tools and techniques Recognize that the chief audit executive communicates the annual audit plan to senior management

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IIA IIA-CIA-Part2 Exam Syllabus Topics:

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