IIA iia-cia-part2 practice test

Question 1

Which of the following is a disadvantage of using flowcharts during a risk assessment?
191/192
Questions & Answers PDF
P-
A. People cannot quickly understand the processes via flowcharts
B. Flowcharts are not applicable for evaluating the design of controls
C. Some serious risks that are not part of the linear process can be missed
D. Flowcharts do not enable auditors to identify missing controls

Answer:

C
192/192

Question 2

In which of the following situations would an internal control questionnaire best suit the internal
auditor's purpose?

• A. The auditor wants to receive mid-level management insight on how to improve hiring practices
• B. The auditor wants to obtain information on whether adherence to approval matrices is actually taking place in different maintenance units.
• C. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures.
• D. The auditor wants to assess whether different subsidiaries apply centrally established procurement rules in the same manner

Answer:

D

Question 3

Which of the following computerized audit tools or techniques should be used if the internal auditor
wants to extract specific files and records in the database?

• A. An expert or decision support system
• B. Generalized audit software
• C. A system utility program
• D. An integrated test facility

Answer:

C

Question 4

Which of the following would present the most critical external risk to an organization?

• A. The organization experiences a merger, and the management team is reorganized and redistributed globally
• B. The organization launches a product into new global markets
• C. After minimal testing, the organization implements a new system to replace a legacy system
• D. Regulators announce broad legislative reforms applicable to the industry within which the organization operates

Answer:

D

Question 5

A chief audit executive (CAE) reviews the supervision of an internal audit engagement Which of the
following would most likely assure the CAE that the engagement had adequate supervision?

• A. The engagement supervisor has an open door pokey for audit team members to discuss concerns
• B. The supervisor reviews weekly progress reports from the audit team members
• C. The supervisor reviews and initials internal audit workpapers for the engagement
• D. The supervisor meets periodically with management in the reviewed area to get feedback during the engagement. 190/192 Questions & Answers PDF P-

Answer:

C

Question 6

Which of the following best describes how an internal auditor would use a flowchart during
engagement planning?

• A. To prepare for testing the effectiveness of controls
• B. To plan for evaluating potential losses
• C. To prepare a sampling plan for the engagement
• D. To evaluate the design of controls

Answer:

D

Question 7

An internal audit manager is planning a contract compliance audit Which of the following should be
done prior to developing the audit work program?

• A. Select a sample of invoices for substantive testing
• B. Review the contract for evidence of authorization
• C. Document underlying reasons for noncompliance
• D. Assess the inherent risk of paying duplicate invoices

Answer:

C

Question 8

Which of the following reasonably represents best practices regarding what should be the level of
internal audit resource investment in monitoring and following up on engagement outcomes?
189/192
Questions & Answers PDF
P-

• A. Limited resources should be employed since the actual engagement is already completed and the onus of corrective actions rests with management
• B. No resources should be exclusively deployed for that at all rather it should be planned as part of future engagements in the same area
• C. Resources should only be provided towards this if doing so does not result in depletion of resources for new engagements planned in the current period
• D. Resources should be allocated to this without conditions as long as doing so meets the expectations of management and the judgment of the chief audit executive.

Answer:

D

Question 9

Which of the following statements concerning workpapers is the most accurate?

• A. The organization and the format of workpapers is the same for all engagements
• B. The extent of what is included in workpapers is a matter of professional judgment
• C. Workpapers should be complete so that every conceivable question that can be raised should be answered
• D. Copies of operational managements records should not be included, but referenced so that they can be located

Answer:

D

Question 10

An internal auditor collected several employee testimonials Which of the following is the best action
for the internal auditor to take before drawing a conclusion?

• A. Ensure the testimonials are well documented
• B. Substantiate the testimonials with physical or documentary evidence
• C. Corroborate testimonials with the results from other soft control techniques
• D. Review the testimonials with the interviewed employees

Answer:

C