IIA-CIA-PART2 practice questions 331–340

1. Question 331 · 475 in bank

   According to IIA guidance, which of the following reflects a valid principle for the internal audit activity to rely on the work of internal or external assurance providers?

   • AElements of evaluation.
   • BElements of organization.
   • CElements of practice.
   • DElements of confidentiality.

   Show answer

   Answer: A

   Next question

2. Question 332 · 475 in bank

   In an organization with a large internal audit activity that has several audit teams performing engagements simultaneously, which of the following tasks is an engagement supervisor most likely to perform during the planning phase of a new engagement?

   • AEstablish a means for resolving any professional judgment differences over ethical issues that may arise during the engagement.
   • BApprove the engagement work program to ensure the program is designed to achieve the engagement objectives.
   • CEvaluate whether the testing and results support the engagement results and conclusion.
   • DReview the sample testing results for exceptions.

   Show answer

   Answer: B

   Next question

3. Question 333 · 475 in bank

   An engagement team is being assembled to audit of one of the organization's vendors. Which of the following statements best applies to this scenario?

   • AThe engagement team should include internal auditors who have expertise in investigating vendor fraud.
   • BThe engagement team should be comprised of certified accountants who are proficient in financial statement analysis and local accounting principles.
   • CTo preserve independence and objectivity, an auditor who worked for the vendor two years prior may not participate on the engagement team.
   • DThe engagement team may include an auditor who lacks knowledge of the industry in which the vendor operates.

   Show answer

   Answer: D

   Next question

4. Question 334 · 475 in bank

   The chief audit executive (CAE) for a manufacturing company included in this year's audit plan a review of the company's laboratory, using an experienced external service provider. The audit plan was approved by the audit committee without any changes. At the time of engaging the external service provider, the CAE also secured the approval from the CEO. Who is responsible for ensuring that the conclusions reached for this exercise are adequately supported?

   • AAudit committee.
   • BСEO.
   • CCAE.
   • DExternal service provider.

   Show answer

   Answer: C

   Next question

5. Question 335 · 475 in bank

   A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products. Recently, quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?

   • AA risk assessment.
   • BAn operational audit.
   • CA third-party audit.
   • DA fraud investigation.

   Show answer

   Answer: B

   Next question

6. Question 336 · 475 in bank

   An internal audit activity is planning its first audit of IT shared services. Which of the following controls would typically be evaluated first?

   • AEntity-level controls.
   • BApplication controls.
   • CGeneral controls.
   • DTransaction controls.

   Show answer

   Answer: A

   Next question

7. Question 337 · 475 in bank

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

   • AQuestionnaires.
   • BSurveys.
   • CStructured interviews.
   • DFacilitated team workshops.

   Show answer

   Answer: D

   Next question

8. Question 338 · 475 in bank

   An internal auditor uses a data query tool in the purchasing process to review the vendor master file for authorizations. Which of the following describes the control objective likely being tested?

   • AEffectiveness.
   • BResponse.
   • CEfficiency.
   • DMitigation.

   Show answer

   Answer: A

   Next question

9. Question 339 · 475 in bank

   Which of the following should management action plans include at a minimum?

   • AAn implementer for the action plan.
   • BAn owner of the action plan.
   • CThe internal auditor's next review date of the action plan.
   • DDetailed procedures for the action plan.

   Show answer

   Answer: C

   Next question

10. Question 340 · 475 in bank

    Which of the following is most likely to be judged as a significant residual risk that would exceed the organization's acceptable risk level?

    • AAny risk involving organizational expansion into a new geographical area with an unstable political environment.
    • BAny risk involving investments into bitcoin and suspicious derivatives.
    • CAny risk that can cause material or financial loss.
    • DAny risk that could cause injuries or pollute the environment.

    Show answer

    Answer: D

    Next question

Keyboard:J Kmove between questionsA–Dselect an answerRshow or hide the answer← →change page

IIA-CIA-PART2 practice, question 331. 475 questions available.