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IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 25

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Question 241

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Which of the following statements generally true regarding audit engagement planning?

The best source tor detailed process information is senior management
The best source tor detailed process information is senior management
Audit objectives should be general and do not change.
Audit objectives should be general and do not change.
Computer-assisted audit techniques are typically not useful during engagement planning
Computer-assisted audit techniques are typically not useful during engagement planning
Internal auditors should prepare a dented audit program for testing controls
Internal auditors should prepare a dented audit program for testing controls
Suggested answer: D
Explanation:

Preparing a detailed audit program is a critical component of engagement planning. This program outlines the specific procedures and tests that the internal auditor will perform to evaluate the effectiveness of controls. It ensures that the audit is conducted systematically and thoroughly, addressing all relevant risks and objectives. A detailed audit program provides a clear roadmap for the audit, helping to ensure that all necessary areas are covered and that the audit's objectives are achieved.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2201 - Planning Considerations

asked 18/09/2024
Kunle Fodeke
51 questions

Question 242

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Which of the blowing is an example of a compliance assurance engagement?

Proving in-house training to senior management regarding applicable laws and regulations
Proving in-house training to senior management regarding applicable laws and regulations
Proving an assessment of the design adequacy of controls related to consumer privacy and confidentially.
Proving an assessment of the design adequacy of controls related to consumer privacy and confidentially.
Providing an assessment of customer satisfaction with customer service provided by the organization
Providing an assessment of customer satisfaction with customer service provided by the organization
Providing testing on the operating effectiveness of controls ever the reliability of financial reporting
Providing testing on the operating effectiveness of controls ever the reliability of financial reporting
Suggested answer: B
Explanation:

A compliance assurance engagement focuses on evaluating whether an organization is adhering to applicable laws, regulations, policies, and procedures. Assessing the design adequacy of controls related to consumer privacy and confidentiality is a prime example of such an engagement, as it ensures that the organization's controls are designed to comply with relevant privacy laws and regulations, thereby protecting consumer data and maintaining compliance.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2410 - Criteria for Communicating

asked 18/09/2024
shylashri selvamani
50 questions

Question 243

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An internal auditor is preparing an internal control questionnaire for the procurement department as part of a preliminary survey. Which of the following would provide the best source of information for questions?

A relevant procurement law or regulation.
A relevant procurement law or regulation.
A list of the company's vendors.
A list of the company's vendors.
A review of a sample of tenders during the audited period.
A review of a sample of tenders during the audited period.
A summary of the company's expenditures and their categories.
A summary of the company's expenditures and their categories.
Suggested answer: A
Explanation:

When preparing an internal control questionnaire for the procurement department, referencing relevant procurement laws or regulations ensures that the questions are aligned with the legal and regulatory requirements governing procurement activities. This approach helps to ensure that the questionnaire addresses all necessary compliance issues and identifies potential gaps in the organization's procurement processes that could lead to non-compliance.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2201 - Planning Considerations

asked 18/09/2024
Swen Evers
41 questions

Question 244

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According to IIA guidance, which of the following is the most appropriate action to be taken by the chief executive (CAE) if management refuses to accept audit recommendations and implement corrective actions, Even after escalation to senior management?

The CAE should continue to meet with management to obtain their agreement for corrective action
The CAE should continue to meet with management to obtain their agreement for corrective action
The CAE should note in the final report that management has decided to accept the risk.
The CAE should note in the final report that management has decided to accept the risk.
The CAE should ask that additional testing be undertaken to strengthen his case as to the need for corrective action.
The CAE should ask that additional testing be undertaken to strengthen his case as to the need for corrective action.
The CAE should advise senior management of his intention to escalate the matter to the board.
The CAE should advise senior management of his intention to escalate the matter to the board.
Suggested answer: D
Explanation:

According to IIA guidance, if management refuses to accept audit recommendations and implement corrective actions, the chief audit executive (CAE) has a responsibility to ensure that the audit committee or the board is aware of the unresolved risks. The CAE should escalate the matter to senior management first. If senior management still does not take action, the CAE should then inform the board. This escalation process ensures that the board is fully informed about significant risks that management has decided to accept and can take appropriate action if necessary.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2600 - Communicating the Acceptance of Risks

asked 18/09/2024
Chaston Williams
34 questions

Question 245

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The chief audit executive of an international organization is planning an audit of the treasury function located at the organization's headquarters. The current internal audit team at headquarters lacks expertise in the area of financial markets which is needed tor the engagement When of the following would be the most approbate solution considering the time constraint?

Outsource the engagement 10 tie organization's external auditor who has expertise in the area of financial markets
Outsource the engagement 10 tie organization's external auditor who has expertise in the area of financial markets
Hire additional internal auditors who have expertise in the area of financial markets.
Hire additional internal auditors who have expertise in the area of financial markets.
Invite a guest auditor from one of the organization's affiliates who has expertise m the area of financial markets.
Invite a guest auditor from one of the organization's affiliates who has expertise m the area of financial markets.
Limit the scope of the engagement to the knowledge and skills possessed by the internal audit team.
Limit the scope of the engagement to the knowledge and skills possessed by the internal audit team.
Suggested answer: C
Explanation:

Given the time constraint and the need for specialized knowledge in financial markets, inviting a guest auditor from one of the organization's affiliates who has the required expertise is the most appropriate solution. This approach leverages existing internal resources with the necessary skills, which can be more efficient and cost-effective than hiring new staff or outsourcing the engagement. Additionally, it facilitates knowledge sharing and can help build internal audit capacity for future engagements.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 1210 - Proficiency

asked 18/09/2024
olanrewaju malomo
36 questions

Question 246

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Due to emerging new technologies that greatly affect the organization, the chief audit executive (CAE) wants to conduct frequent IT audit and is particularly focused on improving the quality of these engagements. Which of the following is the most viable solution for the CAE to ensure that IT audit quality is immediately enhanced and maintained long-term?

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Question 247

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Which of the following statement is consistent with IIA guidance the use of mentoring for internal auditors?

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Question 248

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An internal audit team was conducting an assurance engagement to review segregation of duties in the purchasing function. The internal auditors reviewed a sample of purchase orders from the past two year and discovered that 2 percent were signed by employees who were operating in a designated acting capacity due to employee absence. According to IIA guidance, which of the following attributes of information would most likely assist the auditor in deciding whether to report this finding?

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Question 249

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Which of the following statements accurately describes the Standards requirement for ret internal audit records?

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Question 250

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A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours. Which of the following factors could cause this trend?

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