IIA-CIA-PART2 Online Practice Questions and Answers

Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

A. Checks are not restrictively endorsed when received.

B. Only one signature is required on the organization's checks.

C. One employee handles both accounts receivable and purchase orders.

D. One employee handles both cash deposits and accounts payable.

In which of the following situations would it be most appropriate to employ the services of a forensic specialist?

A. Detection of unauthorized changes to source documents.

B. Review for misapplication of general computer controls over accounts receivable.

C. Investigation of ghost employees in a large business.

D. Verification of fixed assets in a manufacturing company.

Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?

A. Contingent facility contract analysis.

B. System backup analysis.

C. Vendor supply agreement analysis.

D. Risk analysis.

An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?

A. Attributes sampling.

B. Discovery sampling.

C. Probability-proportional-to-size sampling.

D. Mean-per-unit sampling.

If participants in a control self-assessment workshop begin breaking their agreed-upon ground rules, the facilitator should:

A. Ignore the behavior and continue the workshop.

B. Allow them to continue briefly and then remind them of the ground rules.

C. Have the participants modify the ground rules.

D. Strictly enforce the ground rules.

Which of the following is a red flag associated with fictitious revenues?

A. Slow growth or unusually low profitability.

B. Unusual decrease in the number of days' sales in receivables.

C. Substantial increase in receivables turnover.

D. Significant transactions with related parties.

Which of the following risks assumes an absence of compensating controls in the area being reviewed?

A. Control risk.

B. Detection risk.

C. Inherent risk.

D. Sampling risk.

According to the Standards, which of the following objectives is not required to ensure the appropriate completion of an engagement?

A. Determining audit team members are coordinated to ensure the efficient execution of all engagement procedures.

B. Confirming engagement working papers properly support the observations, recommendations and conclusions.

C. Providing structured learning opportunities for engagement auditors when and wherever possible.

D. Ensuring all engagement objectives are reviewed for satisfactory achievement and properly documented.

Reviewing internal audit report drafts with clients is:

1.

Required according to the Standards.

2.

A form of courtesy.

3.

Ethically mandated.

4.

A form of validation.

A. 1 and 2 only

B. 2 and 3 only

C. 2 and 4 only

D. 3 and 4 only

According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?

1.

Coordinate post-engagement conferences to discuss the final audit report with management.

2.

Include management's responses in the final audit report.

3.

Review and approve the final audit report.

4.

Determine who will receive the final audit report.

A. 1 and 2

B. 1 and 4

C. 2 and 3

D. 3 and 4