[Apr-2023] IIA-CIA-Part2 Questions - Truly Beneficial For Your IIA Exam
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What format is the IIA CIA Part 2 Exam?
Format : multiple-choice
Languages: English
Number of Questions: 100 questions
Time Duration: 120 mins
The passing score: 70%
Learn about the Objective of IIA CIA Part 2 Exam?
The IIA CIA Part 2 Exam is a globally recognized certification exam. The IIA have continuously updated the content of the exam to meet the requirements of the certification exam. It has become a requirement by many employers to hire new employees or promote current employees who have passed this exam in order to ensure that they are able to use the latest technology and skills.
The IIA CIA Part 2 certification is a very challenging and demanding exam that requires candidates to have excellent technical knowledge and skills. In order to pass this exam, candidates need to be very familiar with all of its topics. They also need to be knowledgeable about how each topic relates to other topics and how they can use these relationships in their day-to-day activities. IIA CIA Part 2 exam dumps are the right choice for you.
In addition, candidates must be very familiar with all the different types of questions that may be presented during the examination process. This is because this type of test will require them to answer several types of questions in order to determine if they are qualified for the job. Most employers want to hire those individuals who are capable of solving difficult problems and performing difficult tasks. Educated level of authorization to answering the diligent testing question and don't use the exam dumpslink card install address the times rate.
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NEW QUESTION 194
Company A has a formal comprehensive corporate code of ethics while company B does not.
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
1. Company A exhibits a higher standard of ethical behavior than does company B.
2. Company A has established objective criteria by which an employee's actions can be evaluated.
3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
- A. II and III only
- B. I and II only
- C. II only
- D. III only
Answer: C
NEW QUESTION 195
In which of the following cases is it appropriate for an audit report to not contain management's response either within the report or as an attachment?
- A. There was insufficient time to obtain management's response during the draft reporting process.
- B. Internal controls were found to be properly designed and operating effectively although operations are deemed inefficient.
- C. Management's response to an audit report is generally not a requirement.
- D. An internal audit report contains no observations.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 196
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 expirationdate 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?
- A. 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.).
- B. 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.
- C. Add to the product label a "use by date" line, enter the expiration at the time of receipt, and perform periodic inventory checks.
- D. Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.
Answer: C
NEW QUESTION 197
Which of the following would constitute a violation of the IIA Code of Ethics?
- A. An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.
- B. An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.
- C. An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.
- D. An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.
Answer: D
NEW QUESTION 198
Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?
- A. Testing.
- B. Evaluating findings.
- C. Determining the scope.
- D. Reviewing internal controls.
Answer: C
NEW QUESTION 199
An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?
- A. Send confirmations, including zero-balance accounts, to vendors with whom the company normally does business.
- B. Trace receiving reports issued before the period end to the related vendor invoices and accounts payable list.
- C. Examine supporting documentation of subsequent (after-period) cash disbursements and verify period of liability.
- D. Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 200
An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?
- A. Review all journal entries that transferred costs from capital to inventory accounts.
- B. Compare inventory receipts with debits to the inventory account and investigate discrepancies.
- C. Analyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.
- D. Identify variances between amounts capitalized each month and the capital budget.
Answer: A
NEW QUESTION 201
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?
- A. An audit of the branch office is routinely scheduled every three years.
- B. On-site follow-up of a remote branch may not be feasible due to travel costs.
- C. The CAE and management agree that the corrective action taken to date is sufficient.
- D. Branch office management states that correction of the audit issue may take longer than expected.
Answer: C
NEW QUESTION 202
An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?
- A. Follow up during the next scheduled audit.
- B. Observe corrective measures.
- C. Seek a management assurance declaration.
- D. Conduct appropriate testing to verify management responses.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 203
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. III and IV only
- B. II and IV only
- C. I only
- D. II, III, and IV only
Answer: D
NEW QUESTION 204
The most common motivation for management fraud is the existence of:
- A. Job dissatisfaction.
- B. Vices, such as a gambling habit.
- C. The challenge of committing the perfect crime.
- D. Financial pressures on the organization.
Answer: D
NEW QUESTION 205
When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:
- A. Document the appraisal.
- B. Notify the internal auditor of the upcoming appraisal several days in advance.
- C. Use generalizations.
- D. Use objective, impartial language.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 206
An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?
- A. Examine the seven loans to determine if there is a pattern. Summarize amounts and include in the engagement final communication.
- B. Report the amounts to the loan committee and leave it up to them to correct. Take no further follow-up action at this time and do not include the items in the engagement final communication.
- C. Follow up with the appropriate vice president and include the vice president's acknowledgment of the situation in the engagement final communication.
- D. Determine the amount of the differences and make an assessment as to whether the dollar differences are material. If the amounts are not material, not in violation of government regulations, and can be rationally explained, omit the observation from the engagement final communication.
Answer: B
NEW QUESTION 207
According to IIA guidance, which of the following statements are true regarding the internal audit plan?
1. The audit plan is based on an assessment of risks to the organization.
2. The audit plan is designed to determine the effectiveness of the organization's risk management process.
3. The audit plan is developed by senior management of the organization.
4. The audit plan is aligned with the organization's goals.
- A. 3 and 4 only
- B. 1, 2, and 4
- C. 1, 3, and 4
- D. 1 and 2 only
Answer: B
NEW QUESTION 208
An audit of an organization's claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:
- A. Discuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.
- B. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
- C. Schedule a follow-up engagement within six months to assess the status of corrective action.
- D. Adjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.
Answer: B
NEW QUESTION 209
The final internal audit report should be distributed to which of the following individuals?
- A. Audit client management only
- B. Executive management only
- C. Audit client management, executive management, and any those who request a copy.
- D. Audit client management, executive management, and others approved by the chief audit executive.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 210
During a payroll audit of a large organization, an internal auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:
- A. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- B. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- C. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
- D. Recommend to the chief audit executive that a fraud investigation be started.
Answer: A
NEW QUESTION 211
Which of the following topics must the internal audit staff discuss with management during the exit conference?
1. Issues identified during the audit.
2. Evaluation criteria used to select controls for testing.
3. Staff who were interviewed during the audit.
4. The reporting process for the draft and final report.
- A. 2 and 4 only
- B. 1 and 3 only
- C. 1 and 4 only
- D. 2 and 3 only
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 212
Which of the following potential performance measures should an auditor recommend excluding from a performance scorecard?
- A. Training dollars per employee.
- B. Number of customer complaints.
- C. Market share.
- D. Number of employees.
Answer: D
NEW QUESTION 213
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