Get The Most Updated IIA-CIA-Part2 Dumps To Certified Internal Certification [Q54-Q68]

Rate this post

Get The Most Updated IIA-CIA-Part2 Dumps To Certified Internal Certification

IIA Certified IIA-CIA-Part2 Dumps Questions Valid IIA-CIA-Part2 Materials

IIA IIA-CIA-Part2 Exam Syllabus Topics:

Topic	Details
Topic 1	Describe coordination of internal audit efforts with the external auditor, regulatory oversight bodies Determine engagement objectives, evaluation criteria, and the scope of the engagement
Topic 2	Prepare workpapers and documentation of relevant information to support conclusions and engagement results Determine the level of staff and resources needed for the engagement
Topic 3	Identify sources of potential engagements Describe policies and procedures for the planning, organizing, directing
Topic 4	Interpret administrative activities Use computerized audit tools and techniques Recognize that the chief audit executive communicates the annual audit plan to senior management
Topic 5	Evaluate the relevance, sufficiency, and reliability of potential sources of evidence Develop checklists and risk-and-control questionnaires as part of a preliminary survey of the engagement area

QUESTION 54
Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?

Questionnaires.

Surveys.

Structured interviews

Facilitated team workshops

QUESTION 55
Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?
I.Computerized tests to assess transaction reasonableness and validity.
II.
Review of log books to ensure that transactions are logged upon receipt.
III.
Edit checks to identify unusual transactions.
IV.
Verification of limitations on the authority of users to initiate specific EDI transactions.

I and IV only.

II and III only.

I, II, and III only.

I, II, III, and IV.

QUESTION 56
An audit of a company’s accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:

Transferred the individuals who maintained the vendor master file to another department to ensure that responsibilities are appropriately segregated.

Compared the vendor and employee master files to determine if any unauthorized vendors have been added to the vendor master file.

Changed the access control system to prevent employees from both entering invoices and approving payments.

Modified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.

Section: Volume B

QUESTION 57
Which of the following statements about including consulting engagements in the annual internal audit plan is true?

All requests for consulting engagements must be included in the annual internal audit plan

Assurance engagements must be included in the annual internal audit plan but there is no requirement to include consulting engagements

Consulting engagements do not need to be included m the annual internal audit plan unless requested by the board

The acceptance of proposed consulting engagements into the annual internal audit plan may depend on their ability to add value

QUESTION 58
An internal auditor has a recommendation to change operations which could potentially increase profits by $50,000. The best way to sell this recommendation to management is to:

Carefully work out the details of implementation before presenting it to department management.

Discuss it with operating supervisors who are directly affected by the change, and then with department management.

Bring it to the audit manager, who should bring it immediately to senior management’s attention.

Wait until the exit conference to discuss it in order to ensure all affected parties are present.

QUESTION 59
Which of the following are typical steps in the design of an organization’s performance measurement system?

Understand organizational strategy; perform a situational assessment; establish measurement categories; and take actions based upon measurement results.

Categorize performance measures; establish a data collection plan; analyze data; and predict future performance.

Establish a measurement plan; create an organizational strategy linked to those measurements; trend measurement data; and measure data variability.

Perform a situational assessment; generate macro measurements; review measurement data; and change strategy based upon measurement results.

Section: Volume B

QUESTION 60
During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

The audit supervisor should include the new contracts in the finding for the final audit report.

The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.

The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.

The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

QUESTION 61
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I.Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II.
Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
Verify that the change orders were properly approved by management.

I only.

III only.

I and II only.

I and III only.

QUESTION 62
Which two of the following considerations must an internal auditor take into account while planning an audit of an accounting system/application that has been in use for the last five years?
* The level and manner of linkages between the business’ mission, objectives, and structure and the accounting system/application.
* Presence or absence of computerized and manual controls that address risks.
* Identification of risks at the application level, e.g. availability and security of the system.
* Testing of the system/application for bugs and errors.

1 and 3 only

2 and 3 only

2 and 4 only

3 and 4 only

QUESTION 63
An auditor evaluating excessive product rejection rates should investigate:
I. Communication between sales and production departments on sales returns.
II. Volume of product sales year-to-date in comparison to prior year-to-date.
III. Changes in credit ratings of customers versus sales to those customers.
IV. Detailed product scrap accounts and accumulations.

I and III only

I and IV only

II, III, and IV only

I, II, III, and IV.

QUESTION 64
Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

Section: Volume E

QUESTION 65
Which of the followings statements describes a best practice regarding assurance engagement communication activities?

All assurance engagement observations should be communicated to the audit committee.

All assurance engagement observations should be included in the main section of the engagement communication.

During the “communicate” phase of an assurance engagement, it is best to define the methods and timing of engagement communications.

A detailed escalation process should be developed during the planning stage of an assurance engagement.

QUESTION 66
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

Impact of and exposure to fraud.

Existence of evidence of fraud.

Organizational structure.

Management’s risk appetite.

Section: Volume C

QUESTION 67
What is the primary reason for having audit management approve audit engagement reports?

To ensure that client concerns are appropriately addressed.

To confirm proper format, grammar, and punctuation.

To verify that senior management supports the report’s conclusions.

To validate that report findings are substantiated.

Section: Volume B

QUESTION 68
Which of the following is not relevant when developing recommendations for inclusion in audit reports?