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Completing the IIA CIA Part 2 certification is a step towards success. The certification distinguishes you from other competitors and increases your chances of getting high paying jobs.
The Certified Internal Auditor (IIA CIA Part 2) exam is a certification exam that provides an opportunity to individuals who want to pursue their careers in the field of internal auditing. This certification exam is offered by the Institute of Internal Auditors (IIA). The main objective of this certification is to provide professional recognition and knowledge to the individuals with the purpose of increasing their understanding of internal auditing. IIA CIA Part 2 exam dumps are designed to help individuals prepare for this certification exam.
The Certified Internal Auditor (IIA CIA Part 2) exam is divided into three parts. Each part covers different concepts and ideas related to internal auditing such as audit process, conduct, internal control, risk assessment, monitoring activities, and reporting processes.
NEW QUESTION 331
In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?
I. Audit team's knowledge of the audited area.
II. Usefulness of the audit results.
III. Quality of management of the internal audit activity.
IV.
Clarity of the scope and objectives of the audit engagement.
- A. II and IV only
- B. I, II, and IV only
- C. I and II only
- D. I, III, and IV only
Answer: B
NEW QUESTION 332
Reviewing internal audit report drafts with clients is:
----
Required according to the Standards.
A form of courtesy.
Ethically mandated.
A form of validation.
- A. 2 and 3 only.
- B. 2 and 4 only.
- C. 1 and 2 only.
- D. 3 and 4 only.
Answer: B
NEW QUESTION 333
According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?
- A. Auditing the risk management process for reasonableness.
- B. Having no active role or involvement in the risk management process.
- C. Coordinating and managing the risk management process.
- D. Participating with management in identifying and evaluating risks.
Answer: C
NEW QUESTION 334
A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors: the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses:
Risk Reduction
Cost Savings
Changes
High (3)
Medium (2)
Low (1)
High (3)
Low (1)
High (3)
Low (1)
High (3)
Medium (2)
Medium (2)
Medium (2)
High (3)
If the organization has asked the CAE to consider the cost savings factor to be twice as important as any other factor, which engagements should the CAE pursue?
- A. 1 and 3 only
- B. 1 and 2 only
- C. 2 and 4 only
- D. 3 and 4 only
Answer: D
NEW QUESTION 335
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I. Financial measures.
II. Internal business process measures.
III. Client satisfaction measures.
IV. Innovation and learning measures.
- A. II and IV only
- B. III and IV only
- C. II, III, and IV only
- D. I only
Answer: C
NEW QUESTION 336
Which of the following is a responsibility of the internal auditor once a fraud investigation has been concluded?
- A. Implement controls to prevent future occurrences.
- B. Determine if controls need to be implemented or strengthened to reduce future vulnerability.
- C. Notify the appropriate regulatory authorities regarding the outcome of the investigation.
- D. Ascertain the extent to which fraud has been perpetrated.
Answer: B
NEW QUESTION 337
If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?
- A. The confidence level could not be quantified.
- B. The precision would be larger.
- C. The risk of incorrect acceptance would be higher.
- D. The projected value of inventory would be less reliable.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION 338
Company A has a formal comprehensive corporate code of ethics while company B does not.
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
I. Company A exhibits a higher standard of ethical behavior than does company B.
II. Company A has established objective criteria by which an employee's actions can be evaluated.
III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
- A. II and III only
- B. I and II only
- C. III only
- D. II only
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 339
The internal audit activity of an investment company received a request to provide assurance on the risk management process. Preliminary discussion with senior management revealed that separate functions within the organization perform some form of risk management activities. Which of the following is the most effective tool for ensuring that risk management activities are coordinated among these functions?
- A. Assurance map.
- B. Delphi technique.
- C. Facilitated workshop.
- D. Analytical reviews.
Answer: A
NEW QUESTION 340
A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors: the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses:
Risk Reduction Cost Savings Changes
High (3) Medium (2) Low (1)
High (3) Low (1) High (3)
Low (1) High (3) Medium (2)
Medium (2) Medium (2) High (3)
If the organization has asked the CAE to consider the cost savings factor to be twice as
important as any other factor, which engagements should the CAE pursue?
- A. 2 and 4 only.
- B. 3 and 4 only.
- C. 1 and 3 only.
- D. 1 and 2 only.
Answer: B
NEW QUESTION 341
An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity (IAA) may provide risk management consulting?
1. There is a clear strategy and timeline to migrate risk management responsibility back to management.
2. The IAA has the final approval on any risk management decisions.
3. The IAA does not give objective assurance on any part of the risk management framework for which it is responsible.
4. The nature of services provided to the organization is documented in the internal audit charter.
- A. 1, 2, and 3 only
- B. 1, 3, and 4 only
- C. 2, 3, and 4 only
- D. 1, 2, and 4 only
Answer: B
NEW QUESTION 342
While reviewing the draft report of an audit engagement, the chief audit executive (CAE) is not in agreement with management's acceptance of the potential risk exposure resulting from an observed key control weakness. Which of the following actions by the CAE would be appropriate for addressing this concern?
* Meet with the auditor-in-charge.
* Discuss with senior management.
* Monitor the result of the accepted risk.
* Report the matter to the board.
- A. 1, 2, and 4 only
- B. 1, 3, and 4 only
- C. 1, 2, and 3 only
- D. 2, 3, and 4 only
Answer: A
NEW QUESTION 343
Which of the following statements is true?
- A. When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
- B. If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
- C. An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.
- D. Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.
Answer: A
NEW QUESTION 344
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:
- A. Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.
- B. Apply analytical procedures to areas that might be impacted by possible fraudulent activities.
- C. Interview employees to identify areas where the fraud could be occurring.
- D. Plan detailed tests of the areas that have the highest dollar amount of transactions.
Answer: B
NEW QUESTION 345
As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?
I. Applicants are not required to have their signed applications legally authenticated.
II. Applicants' educational information is not validated with the educational institution before employment is offered.
III. Information related to applicants' long-term work history is not validated before employment is offered.
- A. I and II only
- B. III only
- C. II and III only
- D. I, II, and III
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 346
Which of the following factors is least essential to a successful control self-assessment workshop?
- A. Voting technology.
- B. Facilitation training.
- C. Group dynamics.
- D. Prior planning.
Answer: A
NEW QUESTION 347
A fast-food company is developing a computer simulation involving arrival time at a drive-through restaurant. The distribution for arrival times is:
Time
Single-Digit Random
Between Arrivals
Probability
Number Assigned
1 minute
0.1
0
2 minutes
0.2
1, 2
3 minutes
0.3
3, 4, 5
4 minutes
0.4
6, 7, 8, 9
Six random numbers are selected to represent the arrival of six cars: 1, 6, 9, 0, 5, 6. The mean time between arrivals for these cars, in this run of the simulation model, is:
- A. 4 minutes.
- B. 3 minutes.
- C. 2 minutes.
- D. 1 minute.
Answer: B
NEW QUESTION 348
In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:
- A. Explain that the auditor's reputation for integrity, which is vital to the auditor's business success, would be seriously damaged if confidentiality were breached.
- B. Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.
- C. Point out that management has given the auditor full authority to conduct this interview.
- D. Tell the employee a piece of information obtained from a coworker in a previous interview.
Answer: A
NEW QUESTION 349
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.
- A. II and III only
- B. I and II only
- C. I only
- D. II, III, and IV only
Answer: B
NEW QUESTION 350
Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?
- A. None of the above actions are needed for items of minor cost and size.
- B. Lock the bins during normal working hours.
- C. Relocate bins to the inventory warehouse.
- D. Require management to compare the cost of consumable items used to the budget.
Answer: D
NEW QUESTION 351
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?
- A. Informational questions.
- B. Assessment questions.
- C. Admission-seeking questions.
- D. Closing questions.
Answer: A
NEW QUESTION 352
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Detection risk.
- B. Sampling risk.
- C. Inherent risk.
- D. Control risk.
Answer: C
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION 353
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. Review previous audit reports from the area and develop engagement objectives to address the area's key risks and controls
- C. Discuss the concerns with the finance manager and work together to agree on the engagement objectives
- D. Request that the board disclose its concerns over governance for inclusion in the engagement
Answer: C
NEW QUESTION 354
What is the primary reason for having audit management approve audit engagement reports?
- A. To ensure that client concerns are appropriately addressed.
- B. To verify that senior management supports the report's conclusions.
- C. To confirm proper format, grammar, and punctuation.
- D. To validate that report findings are substantiated.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 355
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