[Feb-2024] IIA IIA-CIA-Part2 Exam: Basic Questions With Answers
New 2024 Realistic Free IIA IIA-CIA-Part2 Exam Dump Questions and Answer
IIA-CIA-Part2 Exam, also known as the Practice of Internal Auditing, is one of the three exams required to become a Certified Internal Auditor (CIA). IIA-CIA-Part2 exam covers a range of topics related to internal auditing, including governance and risk management, communication skills, and business processes. It is designed to test the candidate's knowledge of the principles, practices, and standards of internal auditing.
IIA-CIA-Part2 Exam is the second part of the Certified Internal Auditor (CIA) designation, which is globally recognized as the standard for excellence in the internal auditing profession. IIA-CIA-Part2 exam consists of 100 multiple-choice questions and is timed for two and a half hours. Candidates who pass the exam earn the CIA designation and are recognized as experts in the field of internal auditing.
NEW QUESTION # 37
Questions used to interrogate individuals suspected of fraud should:
- A. Move from general to specific.
- B. Cover more than one subject or topic.
- C. Adhere to a predetermined order.
- D. Direct the individual to a desired answer.
Answer: A
Explanation:
Section: Volume B
NEW QUESTION # 38
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 # 39
The following is an excerpt from an audit engagement workpaper:
-A Company -Accounts Receivable -Date
Objective. To determine if the computer system is correctly recording all accounts receivable transactions.
Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances.
Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects.
Which of the following is true regarding the workpaper?
- A. It is not appropriate to judgmentally select a sample when testing accounts receivable.
- B. The format of the workpaper does not conform to the standard format for workpapers.
- C. The audit procedures used are not consistent with the audit objective.
- D. A conclusion should be reached only for the results of overall testing, not for individual procedures.
Answer: C
NEW QUESTION # 40
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Sampling risk.
- B. Detection risk.
- C. Inherent risk.
- D. Control risk.
Answer: C
NEW QUESTION # 41
Which of the following would be a red flag that indicates the possibility of inventory fraud?
1. The controller has assumed responsibility for approving all payments to certain vendors.
2. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
3. Sales commissions are not consistent with the organization's increased levels of sales.
4. Payments to certain vendors are supported by copies of receiving memos, rather than originals.
- A. I and II only
- B. I, III, and IV only
- C. II and III only
- D. I, II, and IV only
Answer: D
NEW QUESTION # 42
Which role is not considered a change agent when an organization wants to implement structural changes?
- A. Senior management.
- B. Shareholder.
- C. Line management.
- D. Independent consultant.
Answer: B
NEW QUESTION # 43
Which of the following statements is true?
- A. Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.
- B. When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
- C. An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.
- D. If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
Answer: B
NEW QUESTION # 44
Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?
- A. Questionnaires.
- B. Facilitated team workshops
- C. Structured interviews
- D. Surveys.
Answer: C
NEW QUESTION # 45
During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:
- A. Determine whether appropriate resources are present to carry out the treasury function.
- B. Comply with the internal audit charter and applicable regulatory requirements.
- C. Report any high-risk exposures of the treasury function to management and the board.
- D. Identify areas of the treasury function that should be considered for potential engagement objectives.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 46
An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant.
They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:
- A. Plant management.
- B. The regulatory agency.
- C. A plant health and safety officer.
- D. The risk management function.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 47
According to IIA guidance, which of the following reflects a characteristic of sufficient and reliable information?
- A. The establishment of an audit approach and documentation system
- B. The application of documentation standards m an appropriate and consistent manner
- C. The ability to reach consistent audit conclusions regardless of who performs the audit
- D. The standardization of workpaper terminology and notations
Answer: C
NEW QUESTION # 48
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. I only
- B. II and III only
- C. III and IV only
- D. I and IV only
Answer: C
NEW QUESTION # 49
Which of the following is one of the differences between probability-proportional-to-size (PPS) and attribute sampling?
- A. PPS sampling a applied within the context of testing controls attribute sampling s not.
- B. PPS sampling is used to roach conclusions regarding rates of occurrence, attribute sampling is not.
- C. PPS sampling s used to reach conclusions regarding monetary amounts, attribute sampling is not.
- D. Attribute sampling is affected by the monetary book value of the population PPS sampling is not
Answer: B
NEW QUESTION # 50
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?
- A. Management's risk appetite.
- B. Impact of and exposure to fraud.
- C. Existence of evidence of fraud.
- D. Organizational structure.
Answer: B
NEW QUESTION # 51
An auditor evaluating excessive product rejection rates should investigatE.
I.
Communication between sales and production departments on sales returns.
II.
Volume of product sales year-to-date in comparison to prior year-to-date.
III.
Changes in credit ratings of customers versus sales to those customers.
IV.
Detailed product scrap accounts and accumulations.
- A. I and IV only
- B. I and III only
- C. I, II, III, and IV.
- D. II, III, and IV only
Answer: A
NEW QUESTION # 52
Which of the following is one of the five attributes that internal auditors include when documenting a deficiency?
- A. The criteria used to make the evaluation
- B. The scope of work performed during the engagement
- C. The proposed follow-up engagement work to be performed
- D. The methodology used to analyze data
Answer: A
NEW QUESTION # 53
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IIA-CIA-Part2 exam is a computer-based test consisting of 100 multiple-choice questions. Candidates have two and a half hours to complete the exam. The passing score for IIA-CIA-Part2 exam is 600 out of 800. IIA-CIA-Part2 exam is available in multiple languages, including English, Spanish, French, German, and Chinese.
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