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IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 45

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List of questions

Question 441

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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?

Question 442

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Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?

Question 443

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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 p

Question 444

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Which of the following statistical sampling approaches is the most appropriate for testing a population for fraud?

Question 445

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The chief audit executive (CAE) is developing a workpaper preparation policy for a new internal audit activity. The CAE wants to ensure that all workpapers relate directly to the engagement objectiv

Question 446

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Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to

Question 447

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What is the primary reason that audit supervision includes approval of the engagement report?

Question 448

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What information would be most useful to an internal auditor who is attempting to identify specific processes to include in the scope of an assurance engagement?

Question 449

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Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organ

Question 450

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According to IIA guidance, which of the following is a limitation of a heat map?

Question 441

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?

Observation and inspection.

Inquiry and observation.

Inspection and reperformance.

Inquiry and reperformance.

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Question 442

Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?

Perform comprehensive background checks on all independent auditors on the engagement.

Recalculate all financial calculations to confirm competency.

Examine objectivity and any perceived or actual conflicts of interest.

Review audit tests employed in all previous audits.

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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?

Add value to the organization by taking initiative and implementing corrective actions to mitigate the identified risks.

Communicate to the board the current situation, including the risk exposure to the organization.

Discuss the matter with external auditors and request that they persuade management to address the issue.

Contact the regulatory agency and inform them of the risk exposure.

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Question 444

Which of the following statistical sampling approaches is the most appropriate for testing a population for fraud?

Discovery sampling.

Stop-or-go sampling.

Haphazard sampling.

Stratified attribute sampling.

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Question 445

The chief audit executive (CAE) is developing a workpaper preparation policy for a new internal audit activity. The CAE wants to ensure that all workpapers relate directly to the engagement objectives. Which of the following statements should be included in the policy specifically to address this concern?

The workpapers should be understandable.

The workpapers should be relevant.

The workpapers should be economical.

The workpapers should be complete.

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Question 446

Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.

Ensure new procedures have been documented, approved, and distributed to the employees responsible.

Perform retesting to confirm that new procedures address the previously identified deficient control activities.

Analyze the new procedures, then report to senior management whether the associated risks have been managed.

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Question 447

What is the primary reason that audit supervision includes approval of the engagement report?

To ensure the objectives of the area under review are met.

To ensure senior management supports the report's conclusions.

To ensure report style and grammar are appropriate.

To ensure report findings are substantiated.

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Question 448

What information would be most useful to an internal auditor who is attempting to identify specific processes to include in the scope of an assurance engagement?

Recent organizationwide recognition awards given to employees within the area.

The timing of the most recent audit of the area.

Management's presentation to the board regarding recent area achievements.

Recent area performance indicators against productivity metrics.

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Question 449

Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?

Assume responsibility for quantifying and minimizing the residual risks to the organization.

Assess the level of financial risks that may affect the organization's stability.

Inform the regulatory agency about senior management's action and seek guidance.

Proceed with a consulting engagement to benchmark similar organizations' business practices in the region.

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