Exam IIA-CIA-Part2: Certified Internal Auditor – Part 2, Conducting the Internal Audit Engagement
| Exam Number: IIA-CIA-Part2 | Length of test: 125 mins |
| Exam Name: Certified Internal Auditor – Part 2, Conducting the Internal Audit Engagement | Number of questions in the actual exam: 40-60 |
| Format: PDF, VPLUS | Passing Score: +600 |
Total Questions: 479
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Some new sample questions:
Question:
Which of the following analytical procedures should an internal auditor use to determine whether monthly expenses for the accounting department are reasonable?
A. Review year-over-year trending of total dollars spent in each period.
B. Review changes to the vendor master file for suspicious activity.
C. Review the percentage of on-time payments against prior periods.
D. Review total expenses for accounting against other department expenses in the organization.
Question:
When auditing an organization’s purchasing function, which of the following appropriately matches an engagement objective and the resulting audit procedure?
A. Determine whether the purchasing department complies with policy by examining a random selection of purchase orders.
B. Evaluate whether purchasing requests are properly approved by authorized staff by obtaining independent verification from the vendors.
C. Ascertain whether material receipts are recorded on a timely basis by reviewing physical inventory stock counts.
D. Determine whether prices charged for goods received are correct by reviewing the appropriate accounts payable record by vendor.
Question:
Which of the following represents the best method for confirming that vendor invoices were for authorized purchases?
A. Vouching vendor invoices to payments made.
B. Sorting invoices by purchase orders and comparing for successive duplicate invoices.
C. Comparing a random sample of vendor invoices to purchase orders.
D. Sorting payments by invoice to detect successive duplicate invoices.
Question:
Which of the following is the most appropriate objective for establishing a professional development plan for the internal audit activity?
A. A plan that focuses on furthering the independence of the internal audit activity.
B. A plan that ensures internal auditors collectively possess expertise in various fields to avoid outsourcing.
C. A plan based on individual preferences and proposals, which helps internal auditors achieve greater success.
D. A plan that focuses on filling gaps in the current skills needed to complete audit objectives.
……..
Some new questions:
Q
Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors’ work?
A. Perform comprehensive background checks on all independent auditors on the engagement.
B. Recalculate all financial calculations to confirm competency.
C. Examine objectivity and any perceived or actual conflicts of interest.
D. Review audit tests employed in all previous audits.
Q
An internal auditor discovered that equipment used to monitor air quality was not maintained according to the established maintenance schedule. If the issue is not addressed, the equipment may not provide accurate information on pollutant levels, which could result in regulatory sanctions and reputational damage. The auditor discussed the issue with both the manager in charge and the CEO, who explained that they understand the risk, but it has become too expensive to maintain the equipment as scheduled. In this situation, what should the chief audit executive do?
A. Add value to the organization by taking initiative and implementing corrective actions to mitigate the identified risks.
B. Communicate to the board the current situation, including the risk exposure to the organization.
C. Discuss the matter with external auditors and request that they persuade management to address the issue.
D. Contact the regulatory agency and inform them of the risk exposure.
Q
An internal audit activity has to confirm the validity of the activities reported by a grantee that received a charitable contribution from the organization. Which of the following methods would best help meet this objective?
A. Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.
B. Verifying that the grantee’s final report is in line with what was depicted in the initial budget request.
C. Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions.
D. Interviewing employees of the corporate affairs department, which is responsible for charitable activities.
Q
An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management’s response and action plan are received and documented in the final report, which of the following is most appropriate?
A. Follow up after the applicable changes have been incorporated to validate management’s response.
B. Include the items in the scope of the next scheduled audit of the accounts payable function.
C. Because management agreed with the findings, no further action is deemed necessary.
D. Have an internal audit staff member placed into the accounting department until corrections are made.
Q
Internal auditors map a process by documenting the steps in the process, which provides a framework for understanding. Which of the following is a reason to use narrative memoranda?
A. To create a detailed risk assessment.
B. To identify individuals who perform key roles.
C. To explain a simple process.
D. To document which outputs support other activities.
Q
An internal auditor plans to conduct a walk-through to evaluate the control design of a process. Which of the following techniques is the auditor most likely to use?
A. Observation and inspection.
B. Inquiry and observation.
C. Inspection and reperformance.
D. Inquiry and reperformance.
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