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IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 39

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Question 381

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Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

Question 382

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When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

Question 383

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An internal audit activity plans its engagements based on an organization-wide risk assessment. According to IIA guidance, which of the following statements is true regarding the required frequency

Question 384

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According to IIA guidance, which of the following describes the primary reason the chief audit executive (CAE) should actively network and build relationships with senior management and the board?

Question 385

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According to IIA guidance, which of the following statements is true regarding engagement planning?

Question 386

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An organization's healthcare insurance costs have been rising approximately 10 percent per year for several years. Which of the following analytical review procedures would best evaluate the reasona

Question 387

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The internal audit activity plans to assess the effectiveness of management's self-assessment activities regarding the risk management process. Which of the following procedures would be most approp

Question 388

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According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

Question 389

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An audit reveals that a manager's spouse is receiving paychecks, but is not employed by the organization. According to IIA guidance, which of the following actions should the internal auditor take?

Question 390

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Senior IT management requests the internal audit activity to perform an audit of a complex IT are a. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to per

Question 381

Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

Cost-benefit analysis of management not implementing a recommendation to address an observation.

Inquiry of corrective action to be completed within a certain period.

Reporting the status of every observation for every engagement in a detailed manner.

Soliciting management's feedback after completion of the audit engagement.

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Question 382

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

The overall adequacy of the internal audit activity's resources.

The availability of guest auditors for the engagement.

The number of internal auditors used for the previous review of the same area.

The available resources with the specific skill set required.

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An internal audit activity plans its engagements based on an organization-wide risk assessment. According to IIA guidance, which of the following statements is true regarding the required frequency of the risk assessment?

The risk assessment must be performed at least quarterly.

The risk assessment must be performed at least annually.

The risk assessment must be performed at least once every five years, in alignment with the internal audit activity's quality assurance and improvement program.

There is no specific requirement; a risk assessment should be performed as needed to account for changes in the business environment.

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Question 384

According to IIA guidance, which of the following describes the primary reason the chief audit executive (CAE) should actively network and build relationships with senior management and the board?

To fulfill the CAE's responsibility to keep the board appropriately informed.

To expand the CAE's understanding of management issues.

To help maintain the objectivity of the internal audit activity.

To increase opportunities to demonstrate the internal audit activity performance.

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Question 385

According to IIA guidance, which of the following statements is true regarding engagement planning?

For both assurance and consulting engagements, planning typically occurs after the engagement objectives and scope have already been determined.

The expectations and objectives of an assurance engagement are usually determined by, or in conjunction with, the engagement client.

Internal auditors may not need to complete a preliminary risk assessment for a consulting engagement as they would when planning an assurance engagement.

For both consulting and assurance engagements, internal auditors usually form the engagement objectives prior to completing the preliminary risk assessment.

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Question 386

An organization's healthcare insurance costs have been rising approximately 10 percent per year for several years. Which of the following analytical review procedures would best evaluate the reasonableness of the increase in healthcare costs?

Develop a comparison of the costs incurred with similar costs incurred by other organizations.

Obtain the government index of healthcare costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

Obtain a bid from another healthcare administrator to provide the same administrative services as the current healthcare administrator.

Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred.

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Question 387

The internal audit activity plans to assess the effectiveness of management's self-assessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?

Review corporate policies and board minutes for examples of risk discussions.

Conduct interviews with line and senior management on current practices.

Research and review relevant industry information concerning key risks.

Observe and test control and monitoring procedures and related reporting.

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Question 388

According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

The internal audit activity will assess the effects of changes in maintenance strategy on the availability of production equipment.

The internal audit activity will inform management on the possible risks of moving the data warehouse to a cloud server maintained by a third party.

The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms.

The internal audit activity will ensure equipment downtime risks have been managed in accordance with internal policy.

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Question 389

An audit reveals that a manager's spouse is receiving paychecks, but is not employed by the organization. According to IIA guidance, which of the following actions should the internal auditor take?

Contact the external auditor and provide all relevant documentation.

Report the finding to senior management in a timely manner, following the normal chain of command.

Meet with the local manager to obtain more information on the finding before taking further action.

Bypass the normal chain of command and contact the board directly to report the finding.

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Question 390

Senior IT management requests the internal audit activity to perform an audit of a complex IT are a. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement. Which of the following is the most appropriate action for the CAE to take?

Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.

Accept the audit engagement and use the engagement as an opportunity to develop the audit team's IT expertise while performing the audit work.

Temporarily hire an experienced and knowledgeable IT analyst from the organization's IT department to lead the audit.

Outsource the audit engagement to a reputable IT audit consulting firm.

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Total 461 questions