TAKE Certified Internal IIA-CIA-Part2 PRACTICE QUESTIONS FOR AMAZING RESULTS
IIA IIA-CIA-Part2 Exam Dumps Are Essential To Get Good Marks
NEW QUESTION 79
During an information security audit, an auditor discovers that the current disaster recovery plan was developed three years ago but never tested. There have been significant changes to information systems since the plan was developed. The auditor should:
- A. Recommend that management and users update and test the recovery plan.
- B. Update the recovery plan for management as part of the review.
- C. Review the recovery plan and report weaknesses to management.
- D. Ask management to test the recovery plan immediately.
Answer: A
NEW QUESTION 80
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
I. Identify business applications that require access.
II. Implement steps to continuously assess risks and controls.
III. Define objectives of continuous auditing.
IV. Manage and report results.
- A. II, I, III, IV.
- B. III, I, IV, II.
- C. III, I, II, IV.
- D. II, III, I, IV.
Answer: C
NEW QUESTION 81
An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board iF.
I.In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II.
Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III.
The cost of modifying the sales system to include a preventive control is less than $100,000.
- A. III only.
- B. I, II, and III.
- C. I only.
- D. I and III only.
Answer: C
NEW QUESTION 82
Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?
- A. To link a financial institution's business objectives to a work unit responsible for the associated risk.
- B. To examine the processes involved in exploring, developing, and operating a gold mine.
- C. To evaluate controls regarding the computer security of an oil refinery.
- D. To assess the likelihood and impact of events associated with operating a finished goods warehouse.
Answer: D
NEW QUESTION 83
A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?
- A. 48 percent.
- B. 52 percent.
- C. 30 percent.
- D. 60 percent.
Answer: B
NEW QUESTION 84
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. The cost of audit involvement can be minimized.
- B. Redesign costs can be minimized.
- C. The threat of lack of audit independence can be minimized.
- D. There are clearly defined points at which to issue audit comments.
Answer: B
NEW QUESTION 85
Which of the following documents should the chief audit executive review and approve?
1.Workpaper retention policy.
2.Audit committee meeting minutes.
3.Internal audit handbook.
4.Quarterly financial statements.
- A. 1 and 3 only
- B. 1 and 2 only
- C. 1, 3, and 4 only
- D. 2 and 4 only
Answer: A
NEW QUESTION 86
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. This conclusion would negate any need to perform tests of efficiency.
- C. The number of items selected for testing is inadequate to justify the conclusion.
- D. None of the above.
Answer: D
NEW QUESTION 87
A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?
1.The client manager and her superior.
2.Anyone who may object to the report's validity.
3.Anyone required to take action.
4.The same individuals who receive the final report.
- A. 1 only
- B. 1, 2, and 3
- C. 1, 2, and 4
- D. 1 and 2 only
Answer: B
NEW QUESTION 88
Which of the following statements is true regarding the communication of audit engagement observations?
- A. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only
- B. Criteria, condition, cause, and effect must be communicated for material observations only
- C. Criteria, condition, cause, and effect must be communicated for all engagement observations.
- D. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.
Answer: C
Explanation:
Section: Volume D
Explanation/Reference:
NEW QUESTION 89
Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?
- A. Distribute questionnaires to selected engagement clients shortly before preparing the internal audit annual activity report.
- B. Call engagement clients after the exit interviews and send copies of the documented responses to the clients.
- C. Ask questions during the exit interviews and send copies of the documented responses to the clients.
- D. Provide questionnaires to engagement clients at the beginning of each engagement and request that the clients complete and return them after the engagements.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 90
In performance auditing, which of the following must first be determined by the internal auditor?
- A. Whether management controls are appropriate.
- B. Management's objectives for the process.
- C. Which key performance indicators are in use.
- D. Determination that appropriate benchmarks are in place.
Answer: B
NEW QUESTION 91
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?
- A. Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.
- B. All completed training costs, and 50% of the contracted production costs.
- C. All completed training costs, and the cost of actual production hours completed to date.
- D. Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
Answer: B
NEW QUESTION 92
During the audit of a large decentralized supply chain function, the chief audit executive (CAE) receives serious allegations of fraud concerning the vice president responsible for this function. The CAE engages a third party to provide forensic audit services and lead the investigation portion of the engagement. As part of this team, which of the following would be an appropriate role for the investigator?
1. Authenticate the original approval signatures on contracts.
2. Interview personnel to understand the supply chain processes.
3. Provide certified copies of relevant original documents for the audit file.
4. Identify variances in pixels on original electronic documents.
- A. 1 and 4 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 3 and 4 only
Answer: A
NEW QUESTION 93
Which of the following is not true regarding the management of internal audit resources?
- A. Skills availability must be aligned with financial constraints.
- B. The adequacy of internal audit resources is ultimately a board responsibility.
- C. Resources include external service providers and computer-assisted audit techniques.
- D. A minimum level of information technology knowledge is necessary.
Answer: A
NEW QUESTION 94
One method for dealing with the uncertainty of demand forecasts used in linear programming is to extend the model solution to include.
- A. Goal seeking.
- B. Sensitivity analysis.
- C. Nonlinear programming.
- D. Branch-and-bound solutions.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 95
Which of the following actions is related to the preliminary survey process?
- A. Preparing the engagement work program.
- B. Identifying the current controls.
- C. Completing a detailed test of controls.
- D. Determining if controls are effective.
Answer: B
NEW QUESTION 96
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 expiration date 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. Add to the product label a "use by date" line, enter the expiration at the time of receipt, and perform periodic inventory checks.
- C. 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.
- D. Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.
Answer: B
NEW QUESTION 97
An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?
- A. Senior management is accountable to the board for monitoring the system of internal controls.
- B. The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.
- C. The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.
- D. The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.
Answer: B
NEW QUESTION 98
Which of the following would cause a company's accounts receivable turnover ratio to decrease steadily over a three-year period?
- A. A more liberal credit policy.
- B. Increased cash sales.
- C. An increase in the discount offered for early payment.
- D. Invoices provided on a weekly rather than a monthly basis.
Answer: A
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION 99
......
IIA IIA-CIA-Part2 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
Latest IIA IIA-CIA-Part2 Dumps with Test Engine and PDF (New Questions): https://torrentpdf.vceengine.com/IIA-CIA-Part2-vce-test-engine.html
