IIA IIA-CIA-Part2 CIA Exam Part Two: Practice of Internal Auditing Online Training
IIA IIA-CIA-Part2 Online Training
The questions for IIA-CIA-Part2 were last updated at Jan 28,2025.
- Exam Code: IIA-CIA-Part2
- Exam Name: CIA Exam Part Two: Practice of Internal Auditing
- Certification Provider: IIA
- Latest update: Jan 28,2025
At a construction company, an internal auditor is planning an audit of the company’s process for designing and building grid connections.
The process involves customers making payments m three parts
• The first payment of 10% after approval of the customer s application
• The second payment of 70% prior to construction
• The third payment of 20% after construction is complete
Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?
- A . Controls that ensure that grid connection design is finalized before construction is approved to begin
- B . Controls that ensure construction orders are initiated after the second invoice is paid
- C . Controls that ensure all three invoices are calculated correctly according to the total project cost
- D . Controls that ensure that applications are verified for approval prior to initiating design and construction
‘Internal policy prohibits employees from entering into contacts with financial obligations without proper approval.
A project manager signed a change to an important service agreement without obtaining the proper approval As a result the organization is receiving $5,000 per month less for its services.’’
Which of the following should be added to the observation?
- A . The reason for not following the internal policy
- B . A description of what constitutes proper approval
- C . The annual impact of the changed agreement on cash flows
- D . Details regarding when the change to the agreement was signed
Management has taken immediate action to address an observation received during an audit of the organization’s manufacturing process.
Which of the following is true regarding the validity of the observation closure?
- A . Valid closure requires evidence that ensures the corrected process will function as expected in the future
- B . Valid closure requires the client lo address not only the condition, but also the cause of the condition
- C . Valid closure of an observation ensures it will be included in the final engagement report
- D . Valid closure requires assurance from management that the original problem will not recur in the future
An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO.
Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization’s health and safety program?
- A . The CAE has no role to play, because the chief health and safety officer reports to a senior executive.
- B . The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.
- C . The CAE should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.
- D . The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety program and the reliability of its reports.
The internal audit manager has been delegated the task of preparing the annual internal audit plan for the forthcoming fiscal year All engagements should be appropriately categorized and presented to the chief audit executive for review.
Which of the following would most likely be classified as a consulting engagement?
- A . Evaluating procurement department process effectiveness
- B . Helping in the design of the risk management program
- C . Assessing financial reporting control adequacy
- D . Reviewing environmental, social, and governance reporting compliance
According to the IIA guidance, which of the following foes the engagement work test in a review in a review of an organization al process?
- A . Process objectives
- B . Process risks
- C . Process controls
- D . Process scope
Upon concluding the engagement fieldwork an internal auditor discusses the audit findings with operational management.
There is a greater likelihood that the auditor will obtain a responsive action plan from management when both parties agree on which of the following attributes of the audit finding?
- A . Criteria
- B . Condition
- C . Cause
- D . Effect
Which of the following is the best option for the chief audit executive to consider for effective coordination of assurance coverage?
- A . Create an assurance map to illustrate each provider’s level of assurance and planned activities for each area of the organization
- B . LIMIT© ricks inventory to identify the risks and controls in place and the relevant control owners.
- C . Rely on the risk and control and management testing information maintained for compliance with the regulatory framework
- D . Prepare a risk likelihood and impact heal map to prioritize assurance coverage coordination.
As a result of server managements assumption of risk there is residual risk that exceeds me organisation’s risk appetite.
Which of the following actions would be most appropriate for the chief audit executive to take?
- A . ignore the responsibility of addressing the residual risk
- B . Assume the responsibility of addressing the residual risk
- C . Ensure senior management acknowledges residual risk
- D . Communicate with the board the issue of residual risk
An organization’s board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process.
According to IIA guidance, which of the following roles should the CAE not undertake?
- A . Manage and coordinate risk management processes.
- B . Audit risk management processes.
- C . Become involved in risk oversight committees, monitoring activities, and status reporting.
- D . Accept management’s responsibility for risk management without board approval.
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