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IIA-CIA-Part2 Braindumps Real Exam Updated on Mar 04, 2024 with 360 Questions
To be eligible for the IIA-CIA-Part2 exam, candidates must have a minimum of two years of experience in internal auditing or a related field. Additionally, candidates must have completed the IIA-CIA-Part1 exam, which covers the foundations of internal auditing. The IIA-CIA-Part2 exam is a computer-based test that consists of 100 multiple-choice questions, and candidates are given three hours to complete the exam.
NEW QUESTION # 204
What is the primary reason for having audit management approve audit engagement reports?
- A. To verify that senior management supports the report's conclusions.
- B. To ensure that client concerns are appropriately addressed.
- C. To validate that report findings are substantiated.
- D. To confirm proper format, grammar, and punctuation.
Answer: C
NEW QUESTION # 205
According to IIA guidance, organizations have the most influence on which element of fraud?
- A. Pressure.
- B. Incentives.
- C. Opportunity.
- D. Rationalization.
Answer: C
NEW QUESTION # 206
In performance auditing, which of the following must first be determined by the internal auditor?
- A. Whether management controls are appropriate.
- B. Management's objectives for the process.
- C. Determination that appropriate benchmarks are in place.
- D. Which key performance indicators are in use.
Answer: B
NEW QUESTION # 207
Which of the following processes real-transaction data through auditor-developed test programs?
- A. Tracing.
- B. Mapping.
- C. Generalized audit software.
- D. Parallel simulation.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION # 208
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Control risk.
- B. Detection risk.
- C. Inherent risk.
- D. Sampling risk.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 209
Which of the following would have the least significance in an audit of the efficiency of a driver's license testing facility?
- A. A point-of-sale cashiering system reduces the need to reenter payment data.
- B. Clerical staff administer written tests to allow examiners more time to supervise driving tests.
- C. Examiners are required to be recertified on an annual basis.
- D. Staff are cross-trained to provide backup for other areas of the facility as required.
Answer: C
NEW QUESTION # 210
According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?
- A. The exit conference provides only anticipated results for inclusion in the final audit communication.
- B. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
- C. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
- D. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.
Answer: A
NEW QUESTION # 211
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. 1 and 2 only.
- B. 1 and 4 only.
- C. 3 and 4 only.
- D. 2 and 3 only.
Answer: B
NEW QUESTION # 212
During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation.
According to IIA guidance, which of the following would be the most appropriate next step?
- A. The audit supervisor should include the new contracts in the finding for the final audit report.
- B. The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.
- C. The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.
- D. The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.
Answer: D
NEW QUESTION # 213
Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?
1. Activities requested by management should be considered higher risk than those requested by the audit committee.
2. Activities with lower budgets can be as high risk as those with higher budgets.
3. The potential financial or adverse exposure should always be considered in the assessment of risk.
- A. 1 only
- B. 2 only
- C. 3 only
- D. 2 and 3 only
Answer: D
NEW QUESTION # 214
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?
- A. Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.
- B. Reassign information systems auditors to assist in implementing management's action plan.
- C. Assess the effectiveness of corrections by reviewing statistics related to unplanned system outages, and denials of service.
- D. Assess the status of corrective action during a follow-up audit engagement after the action plan has been completed.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 215
What is the primary factor that determines the depth and breadth of audit follow-up?
- A. The auditor's assessment of risk associated with the audit findings.
- B. The auditor's assessment of personnel responsible for correcting audit findings.
- C. The engagement client's written response to the audit findings.
- D. The availability of audit personnel and financial resources.
Answer: A
Explanation:
Section: Volume B
Explanation
NEW QUESTION # 216
While investigating a compromised Web server, an auditor found that the Web server logs had been deleted. The auditor should recommend that the Web server logs be:
- A. Restored automatically to the Web server from backup files.
- B. Encrypted to ensure that the logs cannot be deleted.
- C. Generated and maintained on a separate secure server.
- D. Accessible by administrative users only
Answer: C
NEW QUESTION # 217
How do internal auditors generally determine the priority of the areas within the engagement scope?
- A. By totaling the monetary value of the processes within the organization in the scope of the engagement
- B. By estimating the likelihood of a risks occurring and the potential impact of that risk on the organization
- C. By counting the number of red flags indicating the potential fraudulent activities within the area.
- D. By calculating the period of time when the area was last audited try internal auditors
Answer: B
NEW QUESTION # 218
Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?
- A. To demonstrate internal auditor proficiency
- B. To demonstrate good project oversight
- C. To provide timely discussion of results
- D. To follow up on previously requested information
Answer: D
NEW QUESTION # 219
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. Forbid the use of emergency purchase orders.
- B. Require a manual receiving report from the warehouse prior to payment.
- C. Review the level of safety stock.
- D. Institute a company policy requiring rotation of orders among several suppliers.
Answer: B
NEW QUESTION # 220
An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?
- A. Discovery sampling.
- B. Attributes sampling.
- C. Mean-per-unit sampling.
- D. Probability-proportional-to-size sampling.
Answer: C
Explanation:
Section: Volume A
Explanation/Reference:
NEW QUESTION # 221
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I.Financial measures.
II.
Internal business process measures.
III.
Client satisfaction measures.
IV.
Innovation and learning measures.
- A. I only.
- B. II, III, and IV only.
- C. III and IV only.
- D. II and IV only.
Answer: B
NEW QUESTION # 222
Which of the following would present the most critical external risk to an organization?
- A. After minimal testing, the organization implements a new system to replace a legacy system
- B. Regulators announce broad legislative reforms applicable to the industry within which the organization operates
- C. The organization launches a product into new global markets
- D. The organization experiences a merger, and the management team is reorganized and redistributed globally
Answer: B
NEW QUESTION # 223
Which of the following would be the best audit procedure to use to determine if a division's unusually high sales and gross margin for November and December were the result of fraudulently recorded sales?
- A. Compare sales and gross margin totals with those of the previous ten months and the first month of the following year.
- B. Confirm accounts receivable balances with customers.
- C. Trace a sample of shipping documents to related sales invoices to verify proper billing.
- D. Use regression analysis techniques to estimate the sales and cost of goods sold for November and December.
Answer: B
NEW QUESTION # 224
According to the Standards, which of the following objectives is not required to ensure the appropriate completion of an engagement?
- A. Determining audit team members are coordinated to ensure the efficient execution of all engagement procedures.
- B. Confirming engagement working papers properly support the observations, recommendations and conclusions.
- C. Ensuring all engagement objectives are reviewed for satisfactory achievement and properly documented.
- D. Providing structured learning opportunities for engagement auditors when and wherever possible.
Answer: D
Explanation:
Topic 4, Volume D
NEW QUESTION # 225
In a review of an electronic data interchange application using a third-party service provider, the auditor should:
I.Ensure encryption keys meet International Organization for Standardization (ISO) standards.
II.
Determine whether an independent review of the service provider's operation has been conducted.
III.
Verify that only public-switched data networks are used by the service provider.
IV.
Verify that the service provider's contracts include necessary clauses, such as the right to audit.
- A. I and IV only.
- B. II and IV only.
- C. I and II only.
- D. II and III only.
Answer: B
NEW QUESTION # 226
Which of the following statements is true regarding internal control questionnaires?
- A. internal control questionnaires provide reliable documents allowing internal auditors to cover many control procedures in little time
- B. Internal control questionnaires can be used by internal auditors as an interview guide
- C. Internal control questionnaires are useful m evaluating the effectiveness of standard operating procedures
- D. Internal control questionnaires provide direct audit evidence which may need corroboration
Answer: D
NEW QUESTION # 227
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