Which of the following sources of testimonial evidence would be considered the most reliable regarding whether a process is effectively performed according to its design?

The supervisor in charge of the process

The person responsible for performing the task

Two or more people that work in the area

The supervisor in charge of the process

The manager that wrote the steps to be followed

Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?

The presence of an independent critical mass

The established philosophy and operating style of senior management

The articulated internal control objectives of the organization

The organization's employee recruiting and retention policies

The following is a list of major findings in the executive summary report for an audit of the contract management process- Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million- Compliance with contract obligations and deliverables is not monitored- No contract agreement with five vendors providing core servicesWhich of the following is an appropriate conclusion that can be drawn from these findings?

The internal controls guiding contract management are not operating effectively

These are weaknesses resulting from a lack of a documented contracting policy

Substandard service delivery by vendors may not be detected

Management should expedite actions to rectify the observations identified

The internal controls guiding contract management are not operating effectively

An internal auditor is examining the organization's internal control processes. Which of the following would the auditor do to test the reliability of a customer database1?

Review for indications of potential issues with the database information

Perform a site visit to see whether the organization's servers are operational

Interview end users to determine whether they understand how to use the database information

Determine whether policies are in place on how to use the database information

Review for indications of potential issues with the database information

Which of the following is the most appropriate approach for the internal audit activity to follow up on management action plans?

Create a tracking system for follow up

Ensure that follow-up activities are performed at least weekly.

Delegate follow-up activities to qualified administrative staff within the business unit

Ensure that follow-up activities are performed by the most senior auditor on staff

The board of directors expressed concerns about potential external risks that could impact the organization s ability to meet its annual objectives and goals The board requested consulting services from the internal audit activity to gain insight regarding the external risks Which of the following engagement objectives would be appropriate to fulfill this request?

Assess the organization's ability to minimize potential external risks

Assess the organization's process of vetting vendors that provide necessary services to the organization

Assess the organization's risk impacts from the markets in which it operates

Assess the organization's controls implemented that would help minimize risks

Which of the following is the primary purpose of implementing a program whereby employees are rotated from other parts of the organization into the internal audit activity?

It provides an opportunity for the recruitment of employees as permanent internal auditors

It provides the internal audit activity with more resourcing options to meet the audit plan

It offers internal auditors the opportunity to learn more about other work areas.

It gives nonauditors a better understanding of the control environment.

It provides an opportunity for the recruitment of employees as permanent internal auditors

During a review of data privacy an internal auditor is tasked with testing management's identification and prioritization of critical data collected by the organization. Which of the following steps would accomplish this objective?

Document and test a data inventory and classification program by determining the data classification levels and framework

interview management to determine what types of data are collected and maintained

Trace data from storage to the collection sources to determine how critical data is collected and organized

Review a sample of data to determine whether the risk classification is reasonable

Document and test a data inventory and classification program by determining the data classification levels and framework

An internal auditor develops an engagement observation related to an organization's accumulation of large travel advances. The auditor observes that the organization's procedures do not require justification for travel advances greater than a specific amount Which of the following best describes the organization's procedures?

A cause of the organization's accumulation of large travel advances

A criterion of the organization's accumulation of large travel advances

A condition of the organization's accumulation of large travel advances

A consequence of the organization's accumulation of large travel advances

A cause of the organization's accumulation of large travel advances

An organization is experiencing a significant risk that threatens its financial well-being Senior management requested that the chief audit executive (CAE) meet with them to discuss the risk. Which of the following would best describe the CAE's responsibility at the meeting?

Determine whether senior management accepted risk that may be deemed unacceptable for the organization

Inform senior management of the appropriate actions they should take to control the risk

Recommend that the internal audit activity provide consulting services to help minimize the risk

Assume the responsibility of resolving the significant risk that will affect the organization

Determine whether senior management accepted risk that may be deemed unacceptable for the organization

An organization recently acquired a subsidiary in a new industry, and management asked the chief audit executive (CAE) to perform a comprehensive audit of the subsidiary prior to recommencing operations The CAE is unsure her team has the necessary skills and knowledge to accept the engagement According to IIAguidance, which of the following responses by the CAE would be most appropriate?

The CAE should accept the engagement and hire an external expert to assist the audit team with the audit of the subsidiary

The CAE should accept the engagement and ensure that an explanation of the expertise limitations is included in the final audit report.

The CAE should ask management to hire an external expert who is familiar with the industry to perform an independent audit for management

The CAE should accept the engagement and hire an external expert to assist the audit team with the audit of the subsidiary

The CAE should recommend postponing the engagement until the internal audit team is able to develop sufficient knowledge of the new industry

When estimating the impact of an inherent risk, which of the following should internal auditors consider?

Financial and nonfinancial factors related to the risk

The probability and frequency of occurrence

Financial and nonfinancial factors related to the risk

The number of risks identified on the heat map

The residual risk following implementation of appropriate controls

An internal auditor is asked to perform an assurance engagement in the organization's newly acquired subsidiary When developing the objectives tor the engagement which ot the following statements describes the most important items that the auditor needs to consider?

Organizational strategy objectives, risks, control framework and the expectations of stakeholders regarding the audit

Previous performance of the subsidiary specifically its financial results over the last three years and the outcome of external audit reviews

The results of previous internal audits of the subsidiary the recommendations provided and whether the recommended actions have been implemented

Organizational strategy objectives, risks, control framework and the expectations of stakeholders regarding the audit

The qualifications and competencies of the subsidiary's management team and their understanding of risk and control

An engagement supervisor reviewed a staff internal auditor's documentation and noted that several edits should be made. The internal audit activity uses an electronic workpaper database and does not maintain paper files for its system of record. A system error prevents the engagement supervisor from adding her electronic signature to any workpaper in the database Given this situation which is the most appropriate response to provide evidence of supervisory review?

The engagement supervisor should print sign and date each workpaper after the review is complete and scan the document into the database as evidence of review

Because the engagement supervisor called the help desk to correct the IT problem, he should upload the support-request ticket from the help desk to serve as evidence of the review

The engagement supervisor should ask another manager-level internal auditor not associated with the project to sign the workpaper on his behalf

The engagement supervisor should instruct the staff internal auditor to add a note in the workpaper on his behalf indicating that the workpaper was reviewed and feedback was provided

Which of the following recommendation types is most likely to propose the most long-term solutions?

Root cause-based recommendations

Condition-based recommendations

Root cause-based recommendations

In order to obtain background information on an assigned audit of data center operations an internal auditor administers control questionnaires to select individuals who have primary responsibilities within the process. Which of the following is a drawback of this approach?

Information on control functionality is limited

It will be difficult to quantify the information obtained through this approach

This approach does not help the auditor learn about the existence of controls

It takes the auditor a long time to assess the relevant controls using this approach

Information on control functionality is limited

Which of the following best describes the manual audit procedure known as vouching?

Testing the validity of information by following it backward to a previously prepared record

Testing the accuracy of the control by reperforming the task or process required

Soliciting and obtaining written verification of the accuracy from an independent third party

Testing the completeness of information forward from a record to a subsequently prepared document

Which of the following audit steps would an internal auditor perform when reviewing cash disbursements to satisfy IIA guidance on due professional care?

The internal auditor reviews the related invoice purchase order and receiving report for each sample selection

The calculated statistical sample size is 50 however the internal auditor believes errors exist so he decides to increase the sample size to 80

The internal auditor traces serial numbers of computer equipment listed on an invoice to the fixed asset inventory

The internal auditor reviews the accounts payable manager's petty cash fund and vouchers

The internal auditor reviews the related invoice purchase order and receiving report for each sample selection

Which of the following describes the primary objective of an internal audit engagement supervisor?

Uphold the quality of the internal audit actively

Provide engagement progress updates to management of the area under review

Assure risks and controls are identified and assessed

Ensure timely completion of the engagement

An internal auditor is planning to audit the organization's payroll function, which was recently outsourced. Which of the following is the most appropriate first step for the auditor?

Understand the objectives and strategies of the new arrangement

Review management's organ nationwide risk assessment

Understand the objectives and strategies of the new arrangement

Revise the scope of the audit engagement

Form objectives for the audit engagement

According to HA guidance on IT, which of the following actions would be performed as part of the 'Define IT Universe' stage of the IT audit plan development process?

Identify significant applications that support the business operations

Assess risk and rank subjects using business risk factors

Identify how the organization structures its business operations

Select audit subjects and bundle into distinct audit engagements

What is the best course of action for a chief audit executive if an internal auditor identifies in the early stage of an audit that some employees have inappropriate access to a key system?

Issue an interim audit report so that management can implement action plans

Contact the audit committee chair to discuss the finding

Obtain verbal assurance from management that the inappropriate access will be removed

Issue an interim audit report so that management can implement action plans

Ask the auditor to create a ticket with the IT help desk requesting to revoke the inappropriate access

The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan Which of the following would be the most appropriate action tor the CAE to take?

Outsource some of the audits to the organization s external auditor who is already familiar with the organization

Use guest auditors from within the organization, and leverage their experience by assigning them to lead engagements m areas where they previously worked

Outsource some of the audits to the organization s external auditor who is already familiar with the organization

Invite nonauditors to join the internal audit activity for a two-year rotational position, and assign them to join audit teams that are reviewing areas where they have no previous management responsibility

Recruit recent college graduates and employ them as audit interns with an aim to offer permanent employment

What is the primary objective of an engagement supervisor's review of key activities performed during the engagement?

To ensure that all work performed meets acceptable quality standards

To ensure that the engagement is completed on time and within budget

To ensure that all work performed meets acceptable quality standards

To ensure that management has provided suitable responses to all observations

To ensure that management is satisfied with the progress of the engagement

Which informal ion- gathering method would be most efficient for an internal auditor to determine whether specified control procedures are in place?

Internal control questionnaires

During follow-up. the internal auditor discovered that operational management did not implement effective actions to address a significant control breach If the issue is left unresolved it may result in regulatory sanctions and damage the organization's reputation What is the most appropriate next step for the chief audit executive to lake?

Discuss the matter with senior management

Implement the recommended control to address the exposure

Discuss the matter with senior management

Ask the regulatory agency to persuade management to address the issue

An internal auditor has been asked to join a project team to help design controls in a software application to address specific risks that have been identified by the team Which of the following actions is most appropriate for the internal auditor to perform?

Advise the project team on how to develop effective controls

Facilitate a control assessment to ensure all application risks were appropriately identified

Advise the project team on how to develop effective controls

Direct the project team to implement the appropriate controls within the software application

Provide assurance that the design of the controls will mitigate the identified application risks

An internal auditor wants to identity potential ghost employees in the organization's payroll system The auditor extracts the following data- Human resources data with employees' names addresses employment conditions and identification codes- Payroll data- Logs from entrance systemsWith this data, which of the following types of ghost employees will the auditor be able to identify?

Employees who get paid although their employment has expired

Employees who are being paid more than then approved wages

Employees who get paid although their employment has expired

Employees who are related to one of the subcontractors

Employees who are physically present at the workplace but who do not perform the specified job duties

According to IIA guidance which of the following represents sufficient information?

Information that is factual adequate and convincing

Information that is best attainable through the use of appropriate engagement techniques

Information that supports engagement objectives and recommendations

Information that helps the organization meet its goals

Which of the following would be the most helpful to a chief audit executive when developing a talent management strategy?

Extent of external audit coverage

An internal auditor wanted to determine whether company vehicles were being used for personal purposes She extracted a report that listed company vehicle numbers business units to which the vehicles are allocated travel dates, travel duration and mileage She then filtered the data for weekend dates Which of the following additional information would the auditor need?

Location and route data of vehicles

Names and work titles of employees

Description of responsibilities of business units.

Average fuel consumption data of vehicles

Location and route data of vehicles

During an audit of suspense accounts the internal auditor found that there were no written policies on how suspense accounts should be treated. The auditor also found that suspense account balances were cleared once per week, not daily. Which of the following is the most appropriate first response by the auditor?

The auditor should ask management whether any undocumented policies exist and. if so, determine whether they are adequate

The auditor should conclude that suspense accounts were not being cleared on a timely basis because they should be cleared daily

The auditor should ask management whether any undocumented policies exist and. if so, determine whether they are adequate

The auditor should conclude that the clearing of suspense accounts was timely and appropriate because weekly clearing is sufficient.

The auditor should rely on his professional judgment and experience to develop criteria for evaluating the existing controls over suspense accounts

Internal audit staff lacks the expertise to perform a fraud investigation engagement stemming from a whistleblowing incident. Which of the following is the most appropriate option for the chief audit executive?

Appoint an independent fraud investigation specialist to work with the selected internal auditors.

Organize in-house fraud investigation training sessions for selected internal auditors.

Assign an experienced auditor to the engagement for a development opportunity.

Hire a new internal auditor who possesses fraud investigation experience.

IIA IIA-CIA-Part2 Practice Test 9 - Free Online Exam Questions 321-360

According to IIA guidance which of the following statements is true regarding the annual audit plan?

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IIA IIA-CIA-Part2 Practice Test 9

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IIA IIA-CIA-Part2 Practice Tests

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