IIA-CIA-Part2 PDF Dumps Jan 17, 2022 Exam Questions – Valid IIA-CIA-Part2 Dumps
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IIA IIA-CIA-Part2 Exam Syllabus Topics:
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NEW QUESTION 360
An organization has a large number of vendors supplying goods to its various branches across the region.
The code of conduct statements signed by the employees specify that the employees or their families will not sell goods to the organization. However, during the internal audit of a branch, the internal auditor suspected that some of the employees may be supplying goods to the organization contrary to the code of conduct. The chief audit executive has requested that a thorough review be completed to identify the potential employee vendors. Of the following tests, it would be least useful to compare [List A] with [List B].
[List A]
[List B]
- A. Dates of payments to vendors
Dates of salary payments to employees - B. Vendor names
Employee names - C. Vendor bank account numbers
Employee bank account numbers - D. Addresses of vendors from the vendor database
Addresses of employees from the employee database
Answer: A
NEW QUESTION 361
A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?
- A. The chief audit executive, although he is not accountable for risk management in the organization.
- B. Operational management, because they are responsible for the day-to-day management of the operational risks.
- C. The CRO, because he is responsible for coordinating and project managing risk activities based on his specialized skills and knowledge.
- D. The CEO, because he has ultimate responsibility for ensuring that risks are managed within the agreed tolerance limits set by the board.
Answer: A
NEW QUESTION 362
Which of the following is not a reason for an internal auditor to prepare an audit plan before the detailed audit work begins?
- A. The timing of the audit should be set.
- B. Attention should be devoted toward the key audit areas.
- C. The objectives of the audit should be set.
- D. The organization's management should be informed about the work to be performed.
Answer: D
NEW QUESTION 363
The most effective method of reporting engagement results to management and stimulating action is to:
- A. Distribute copies of the report, ask the participants to read the report, and ask for questions.
- B. Limit verbal commentary and present a series of slides that graphically depict the engagement results.
- C. Use slides to support a discussion of major points.
- D. Deliver a lecture on the engagement results.
Answer: C
NEW QUESTION 364
An organization contracted a third party to construct a new facility that was estimated to cost $25 million.
Which of the following is the most pertinent reason for the organization to audit the contractor's records?
- A. The contract includes a right-to-audit clause.
- B. The contractor will be paid on a cost-plus basis.
- C. The estimated cost is high.
- D. The contractor has subcontracted much of the work.
Answer: B
NEW QUESTION 365
During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims.
The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:
- A. Conclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.
- B. Document the manager's answers, noting the nature of the nonverbal communication.
- C. Document the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.
- D. Disregard the interview entirely because the verbal and nonverbal communications were contradictory.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION 366
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?
- A. Impact of and exposure to fraud.
- B. Existence of evidence of fraud.
- C. Management's risk appetite.
- D. Organizational structure.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 367
An internal auditor is assigned to validate calculations on the organization's building application As pad of the test the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?
- A. Generalized audit software.
- B. integrated test facilities
- C. Audit expert systems
- D. Utility software
Answer: B
NEW QUESTION 368
An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I. Validate the completeness of the accounts payable files.
II. Examine the sample of vouchers in greater detail.
III. Increase the number of vouchers in the sample.
IV. Broaden the scope of the examination to include credits received by accounts payable.
- A. II and III only
- B. I, III, and IV only
- C. I and II only
- D. I, II, and IV only
Answer: A
Explanation:
Section: Volume B
NEW QUESTION 369
An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?
A)
B)
C)
D)
- A. Option B
- B. Option D
- C. Option C
- D. Option A
Answer: A
NEW QUESTION 370
During an audit of a major contract, an auditor finds that actual hours and dollars billed are consistently at or near budgeted amounts. This condition is a red flag for which of the following procurement fraud schemes?
- A. Cost mischarging.
- B. Fictitious vendor.
- C. Defective pricing.
- D. Bid rotation.
Answer: A
NEW QUESTION 371
An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?
- A. Extend the audit scope and perform additional testing of controls on other related areas
- B. Switch the existing assurance engagement into a fraud investigation engagement
- C. Perform data analytics on the supplier's information, invoiced amounts, and payments performed
- D. Review the poor year's transaction volume and amounts paid compared to the poor year's budget
Answer: C
NEW QUESTION 372
An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if: I.
In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II.
Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III.
The cost of modifying the sales system to include a preventive control is less than $100,000.
- A. I and III only.
- B. I, II, and III.
- C. I only.
- D. III only.
Answer: C
NEW QUESTION 373
Which of the following types of internal audit consulting engagements is an example of a facilitation service?
I. Conducting control self-assessment workshops.
II. Participating on standing committees.
III. Reviewing regulatory compliance.
IV.
Benchmarking.
V.Estimating savings from outsourcing processes.
- A. I and IV only
- B. I, III, and IV only
- C. I, II, III, IV, and V.
- D. II, III, and V only
Answer: A
NEW QUESTION 374
During a payroll audit of a large organization, an internal auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:
- A. Recommend to the chief audit executive that a fraud investigation be started.
- B. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- C. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
- D. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
Answer: B
NEW QUESTION 375
Which of the following actions has the least influence on the chief audit executive's development of an audit plan?
- A. An evaluation of the complexity of each audit engagement.
- B. An assessment of risk and exposures affecting the organization.
- C. Changes in the organizations structure or budget.
- D. Input from senior management and the board.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 376
Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?
- A. Select a sample of receiving reports representative of the period under investigation and trace to approved payment. Note any items not properly processed.
- B. Select a sample of payments made during the year and investigate each one for approval.
- C. Select a sample of invoices paid during the past month and trace them to appropriate vendor accounts.
- D. Use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. Select a sample of those invoices and trace to supporting documents such as receiving reports.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 377
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. III only
- B. II and III only
- C. I, II, and III
- D. I and II only
Answer: B
NEW QUESTION 378
Which of the following actions by management would reduce an employee's opportunity to commit fraud?
- A. Eliminating bonuses tied to sales or other performance goals.
- B. Defining ethical behavior expectations in the company handbook.
- C. Establishing physical controls over company assets.
- D. Identifying consequences, such as termination, for fraudulent activities.
Answer: C
NEW QUESTION 379
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