[Nov-2021] Verified IIA IIA-CIA-Part2 Bundle Real Exam Dumps PDF
IIA-CIA-Part2 Dumps PDF New [2021] Ultimate Study Guide
NEW QUESTION 206
Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated:
"The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate."
In this situation:
- A. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.
- B. The auditor should have considered whether the information in the board report was compiled efficiently.
- C. Four quarters is not a large enough sample on which to base a conclusion.
- D. The auditor should have included the scratch paper in the workpapers.
Answer: A
NEW QUESTION 207
An internal audit activity is planning its first audit of IT shared services. Which of the following controls would typically be evaluated first?
- A. Transaction controls
- B. Application controls
- C. General controls.
- D. Entity-level controls
Answer: C
NEW QUESTION 208
Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?
- A. To help develop process maps.
- B. To determine segregation of duties.
- C. To identify residual risks.
- D. To test the adequacy of controls.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 209
Which of the following conclusions would be appropriate for a beginning auditor performing an audit of a payroll department?
- A. The payroll department staff has the appropriate level of skills.
- B. Employee taxes have been deducted at the correct rates, and the taxes have been forwarded to the appropriate government agency.
- C. Although there is insufficient segregation of duties, the impact is mitigated by compensating controls.
- D. The payroll computer system should be replaced.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 210
During an audit of the accounts receivable (AR) process, an internal auditor noted that reconciliations are still not performed regularly by the AR staff, a recommendation that was made following a previous audit. Monitoring by the financial reporting function has failed to detect the shortcoming. Both the financial reporting function and AR report to the controller, who is responsible for implementing action plans. Which of the following supports the internal auditor's decision to combine both observations into one reported finding?
- A. The observation was made during the same audit, and the action plan has a common owner.
- B. The observation relates to the same control activity within a common process.
- C. The observation has a common control, and it was noted in a prior audit.
- D. The observation has a common process, and the action plan for the observation has a common owner.
Answer: D
NEW QUESTION 211
During an audit, an employee, who does not want to be identified, offers to provide information that would be damaging to the organization and may concern illegal activities. Which of the following actions by the auditor would not be consistent with the IIA Code of Ethics and Standards?
- A. Promising to maintain the employee's anonymity and listening to the information.
- B. Informing the employee of other methods of communicating this type of information.
- C. Informing the employee that an attempt will be made to keep the source of the information confidential while looking into the matter further.
- D. Suggesting that the employee consider talking to legal counsel.
Answer: A
Explanation:
Section: Volume C
Explanation
NEW QUESTION 212
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?
- A. Submission of fraudulent expense reports.
- B. An ineffective customer service department.
- C. Check tampering by an employee.
- D. Poor controls in the invoice approval processes.
Answer: C
NEW QUESTION 213
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. Seek a management assurance declaration.
- B. Conduct appropriate testing to verify management responses.
- C. Follow up during the next scheduled audit.
- D. Observe corrective measures.
Answer: B
NEW QUESTION 214
When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?
- A. Risk factors utilized in the organization's risk models.
- B. Recent changes in management objectives.
- C. The organization's budget.
- D. Operations involving cash transactions.
Answer: B
NEW QUESTION 215
An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?
- A. Confirm the decision with management and document this decision in the audit file.
- B. Document the issue in the audit file and follow up until the issues are resolved.
- C. Initiate an assurance engagement on the unresolved issues.
- D. Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
Answer: A
NEW QUESTION 216
Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?
- A. Operating managers are responsible for assessing risks and controls in their departments.
- B. Senior management is charged with overseeing the establishment risk management and control processes.
- C. Internal auditors provide assurance about risk management and control process effectiveness.
- D. The chief audit executive is responsible for overseeing the evaluation risk management and control processes.
Answer: D
Explanation:
Section: Volume E
Explanation
NEW QUESTION 217
What is the most likely source of information for a detailed schedule of a company's insurance policies in force?
- A. The current fiscal year's budget for insurance, together with the beginning balance of the prepaid insurance account.
- B. Original journal entries found in the cash disbursements journal, along with supporting checks processed by the bank.
- C. Policies and procedures governing insurance coverage.
- D. The files containing insurance policies with various carriers.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 218
Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?
- A. Time cards completed by aircraft cleaning and fueling crews.
- B. Observation of selected aircraft while they are being refueled and cleaned.
- C. Vendor fuel invoices that have been reconciled to inventory records.
- D. Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION 219
If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?
- A. Acts that damage or have an adverse effect on the environment.
- B. Acts that may endanger the health or safety of individuals.
- C. Acts that conceal inappropriate activities in the organization.
- D. Acts that favor one party to the detriment of another.
Answer: D
NEW QUESTION 220
As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. Which of the following is true about the auditor's conclusion?
- A. The shipping department is effective in meeting its responsibilities.
- B. None of the above.
- C. This conclusion would negate any need to perform tests of efficiency.
- D. The number of items selected for testing is inadequate to justify the conclusion.
Answer: B
NEW QUESTION 221
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
- A. Resource utilization rate.
- B. Productivity index.
- C. Productivity ratio.
- D. Operating ratio.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 222
The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:
- A. Redesign costs can be minimized.
- B. The threat of lack of audit independence can be minimized.
- C. The cost of audit involvement can be minimized.
- D. There are clearly defined points at which to issue audit comments.
Answer: A
NEW QUESTION 223
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