[Q81-Q104] Get New 2024 IIA IIA-CIA-Part2 Exam Dumps Bundle On flat Updated Dumps!

Q81. An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?

Verifying the existence of inventory items in each warehouse

Assigning the tolerable deviation rate to determine the sample size

Valuating the obsolete Inventory from all the warehouse locations

Confirming that the purchased items are recorded In the correct period

Q82. 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.

Q83. A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline’s pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?

Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.

All completed training costs, and the cost of actual production hours completed to date.

Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.

All completed training costs, and 50% of the contracted production costs.

Q84. Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?

Objectives scope and timing at a high level to support coordination while adhering to confidentiality requirements

The area and timing of the audit engagement to ensure confidentially and avoid conflict of interest.

All plan information, including risk assessments, planned tests and past results to maximize the opportunity for coordination with internal and external providers.

No information should be shared with internal and external provider as it could introduce bias into the engagement results.

Q85. In order to obtain background information on an assigned audit of data center operations an internal auditor administers control questionnaires to select individuals who have primary responsibilities within the process. Which of the following is a drawback of this approach?

It will be difficult to quantify the information obtained through this approach

This approach does not help the auditor learn about the existence of controls

It takes the auditor a long time to assess the relevant controls using this approach

Information on control functionality is limited

Q86. To compete in the global market, an organization is restructuring and consolidating many of its divisions. Prior to the consolidation, senior management requested assistance from tie internal audit activity. Which of the following consulting services would be most appropriate in this situation?

Assess controls for potential compliance issues that may affect me consolidation

Brief vendors on the potential risks that will occur without continued business

Advise division managers on how to streamline operations for better efficiency

Determine whether the organization’s controls are effective in meeting business objectives

Q87. Which of the following should be included in a privacy audit engagement?
1. Assess the appropriateness of the information gathered.
2. Review the methods used to collect information.
3. Consider whether the information collected is in compliance with applicable laws.
4. Determine how the information is stored.

1 and 3 only

2 and 4 only

1, 3, and 4 only

1, 2, 3, and 4

Q88. After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted. Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?

The CAE should send the final report to operational and senior management and the audit committee.

The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.

The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.

The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified.

Q89. An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?

Analyze the provision for sales allowances.

Analyze the percentage of scrap incurred during production.

Research the rationale for customer returns.

Evaluate the volume and characteristics of products rejected during processing.

Q90. According to the Standards, which of the following best describes what must be agreed upon to establish an understanding with clients prior to starting a consulting engagement?

The engagement objectives, access to clients records, and expectations.

The engagement objectives, scope, and time frame to complete the engagement.

The engagement scope, opportunities for making significant improvements, and client expectations.

The engagement objectives, scope, respective responsibilities, and other client expectations.

Q91. Which of the following statements is true regarding the use of internal control questionnaires (ICOs)?

ICQs are efficient because they minimize the need for follow-up with survey respondents

Controls with positive survey responses can be eliminated from further testing

Answers to survey questions can be easily misinterpreted

ICQs offer limited value for organizations with uniform procedures

Q92. Which of the following statements is true?

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.

Internal audit’s responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.

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.

An assurance engagement observation is considered remediated when management’s corrective action plan is approved by the board.

Q93. Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

Report follow-up activities to senior management.

Implement follow-up procedures to evaluate residual risk.

Determine the costs of implementing the recommendations.

Evaluate the extent of improvements.

Q94. What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?

Trend analysis.

Ratio analysis.

Regression analysis.

Horizontal analysis.

Q95. An internal auditor wants to identity potential ghost employees in the organization’s payroll system The auditor extracts the following data
– Human resources data with employees’ names addresses employment conditions and identification codes
– Payroll data
– Logs from entrance systems
With this data, which of the following types of ghost employees will the auditor be able to identify?

Employees who are being paid more than then approved wages

Employees who get paid although their employment has expired

Employees who are related to one of the subcontractors

Employees who are physically present at the workplace but who do not perform the specified job duties

Q96. During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers’ accounts.
Which of the following would most likely be the reason for the high volume of complaints?

An ineffective customer service department.

Poor controls in the invoice approval processes.

Check tampering by an employee.

Submission of fraudulent expense reports.

Q97. Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.

Ensure new procedures have been documented, approved, and distributed to the employees responsible.

Perform retesting to confirm that new procedures address the previously identified deficient control activities.

Analyze the new procedures, then report to senior management whether the associated risks have been managed.

Q98. An internal auditor is assessing the organization’s risk management framework. Which of the following formulas should he use to calculate the residual risk?

A)

B)

C)

D)

Option A

Option B

Option C

Option D

Q99. Which of the following statements is false regarding audit criteria?

Audit criteria should be consistent across audit assignments.

Audit criteria should represent reasonable standards against which to assess existing conditions.

Audit criteria should provide flexibility but allow identification of nonadherence.

Audit criteria should equate to good or acceptable management practices.

Q100. 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.

I and III only

I and IV only

II, III, and IV only

I, II, III, and IV.

Q101. Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

Observation.

Tracing.

Re-computation.

Vouching.

Q102. After issuance of the engagement final communication for an audit of an organization’s accounts payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.

I only

I and II only

II and III only

II, III, and IV only

Q103. According to IIA guidance which of the following best describes reliable information?

Reliable information is factual adequate, and convincing so that a prudent informed person would reach the same conclusions as the internal auditor

Reliable information is the best attainable information through the use of appropriate engagement techniques

Reliable information supports engagement observations and recommendations and is consistent with the objectives for the engagement

Reliable information helps the organization and the internal audit activity meet its goals

Q104. Once an audit report is drafted, the auditor’s supervisor should review it primarily to ensure that all:

Statements are supported and can be authenticated.

Recommendations for corrective action are clear.

Processes within the audited area were reviewed.

Sample sizes appear appropriate for any issues found.

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