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 29,2025.
- Exam Code: IIA-CIA-Part2
- Exam Name: CIA Exam Part Two: Practice of Internal Auditing
- Certification Provider: IIA
- Latest update: Jan 29,2025
According to IIA guidance, which of the following statements best justifies a chief audit executive’s request for external consultants to complement internal audit activity (IAA) resources?
- A . The organization’s audit universe is extensive and diverse.
- B . There has been an increase in unanticipated requests for advisory work.
- C . Previous work provided by the external service provider has been of great quality and value.
- D . A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
An internal auditor suspects that employee turnover is unusually high at the organization’s primary manufacturing plant.
To investigate this potential issue which of the following analytical approaches is the auditor likely to use?
- A . Ratio analysis
- B . Vertical analysis
- C . Benchmarking
- D . Cost-benefit analysis.
Which of the following should be described in the recognition element of a typical internal audit repot?
- A . Positive aspects of the process or area under review
- B . A brief synopsis of the process of area under review
- C . Outcomes and ratings of the process or area under review
- D . Report issuance and the communication process of the engagement.
According to IIA guidance which of the following statements is true regarding heat maps?
- A . A heat map sets likelihood to have higher priority than impact.
- B . A heat map sets impact to have higher priority than likelihood.
- C . A heat map recognizes that the priority of impact and likelihood can vary.
- D . A heat map recognizes impact and likelihood as equally important
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?
- A . Perform a site visit to see whether the organization’s servers are operational
- B . Interview end users to determine whether they understand how to use the database information
- C . Determine whether policies are in place on how to use the database information
- D . Review for indications of potential issues with the database information
An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls.
Which of the following is the most appropriate course of action for the internal audit team leader?
- A . Defer the engagement until a system of internal control has been established
- B . Change the scheduled engagement from assurance to consulting to help correct the shortcomings
- C . Add a consulting component to the already scheduled assurance engagement
- D . Seek the involvement of the external auditor to assist with improving the internal controls
The audit manager asked the internal auditor to perform additional testing because several irregularities were found in the financial information.
Which of the following would be the most appropriate analytical review for the auditor to perform?
- A . Compare the firm’s financial performance with organizations in the same industry
- B . Interview all managers involved in preparing the financial statements
- C . Perform a bank reconciliation to confirm the cash balance in the financial statements.
- D . Trace each financial transaction to the original supporting document
An organization’s finance manager plans to implement a state-of-the-art management system to better manage the organization’s receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system.
How would the CAE proceed to determine the objectives of this engagement?
- A . Ask the CEO to determine the scope and objectives of the engagement
- B . Request that the board disclose its concerns over governance for inclusion in the engagement
- C . Discuss the concerns with the finance manager and work together to agree on the engagement objectives
- D . Review previous audit reports from the area and develop engagement objectives to address the area’s key risks and controls
The final internal audit report should be distributed to which of the following individuals?
- A . Audit client management only
- B . Executive management only
- C . Audit client management, executive management, and others approved by the chief audit executive.
- D . Audit client management, executive management, and any those who request a copy.
Which of the following statements is false regarding audit criteria?
- A . Audit criteria should be consistent across audit assignments.
- B . Audit criteria should represent reasonable standards against which to assess existing conditions.
- C . Audit criteria should provide flexibility but allow identification of nonadherence.
- D . Audit criteria should equate to good or acceptable management practices.
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