IIA-CIA-PART2 practice questions 341–350

1. Question 341 · 475 in bank

   Which of the following statements is true regarding internal control questionnaires?

   • AInternal control questionnaires are useful in evaluating the effectiveness of standard operating procedures.
   • BInternal control questionnaires provide reliable documents allowing internal auditors to cover many control procedures in little time.
   • CInternal control questionnaires can be used by internal auditors as an interview guide.
   • DInternal control questionnaires provide direct audit evidence, which may need corroboration.

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   Answer: C

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2. Question 342 · 475 in bank

   An internal auditor wants to assess the completeness of sales invoices issued by the organization over a period of time. Providing that all the necessary data and analytics software is accessible, which of the following types of analysis would be appropriate to satisfy the auditor's objective?

   • APayment terms analysis.
   • BDuplicates analysis.
   • CAging analysis.
   • DGap analysis.

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   Answer: D

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3. Question 343 · 475 in bank

   Which of the following computerized audit tools or techniques should be used if the internal auditor wants to extract specific files and records in the database?

   • AAn expert or decision support system.
   • BGeneralized audit software.
   • CA system utility program.
   • DAn integrated test facility.

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   Answer: B

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4. Question 344 · 475 in bank

   An organization's inventory is stored in multiple warehouses. During an inventory audit, which of the following activities would most benefit from the use of computerized audit tools?

   • AVerifying the existence of inventory items in each warehouse.
   • BAssigning the tolerable deviation rate to determine the sample size.
   • CValuating the obsolete inventory from all the warehouse locations.
   • DConfirming that the purchased items are recorded in the correct period.

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   Answer: C

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5. Question 345 · 475 in bank

   After concluding a preliminary assessment, the engagement supervisor prepared a draft work program. According to IIA guidance, which of the following would be tested by this program?

   • AThe process objectives.
   • BThe process risks.
   • CThe process controls.
   • DThe process scope.

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   Answer: C

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6. Question 346 · 475 in bank

   To effectively communicate the acceptance of risk in an organization, a chief audit executive must first consider which of the following?

   • AThe organization's view on risk tolerance.
   • BThe organization's principal risk events.
   • CThe organization's risk response strategies.
   • DThe organization's major control activities.

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   Answer: A

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7. Question 347 · 475 in bank

   Which of the following statements regarding the risk management process' support of the internal audit activity is true?

   • AThe risk management process can provide more extensive internal audit services to the organization if it does not have an internal audit department.
   • BThe risk management process supports internal audit by evaluating whether critical controls are adequate and effective.
   • CThe risk management process can determine whether all significant risks have been identified and are being treated.
   • DThe risk management process establishes an organization-specific, documented risk management framework.

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   Answer: C

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8. Question 348 · 475 in bank

   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?

   • AAsk the CEO to determine the scope and objectives of the engagement.
   • BRequest that the board disclose its concerns over governance for inclusion in the engagement.
   • CDiscuss the concerns with the finance manager and work together to agree on the engagement objectives.
   • DReview previous audit reports from the area and develop engagement objectives to address the area's key risks and controls.

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   Answer: C

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9. Question 349 · 475 in bank

   Which of the following should be the focus of the effect section of the preliminary observations document?

   • AResidual risk.
   • BInherent risk.
   • CCompensating controls.
   • DControl activities.

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   Answer: A

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10. Question 350 · 475 in bank

    When the internal audit activity does not have sufficient time to complete its usual root cause analysis, which of the following is most appropriate?

    • AThe chief audit executive may recommend that management conduct further work to identify the root cause and address the issue.
    • BInternal auditors should finish the engagement without conducting the root cause analysis and draft the audit report, though the report would not be considered complete until the analysis is concluded.
    • CInternal auditors must adjust their future engagement schedule to ensure that the root cause analysis is always performed before the engagement is concluded.
    • DInternal auditors should instead perform a Pareto rule analysis.

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    Answer: A

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IIA-CIA-PART2 practice, question 341. 475 questions available.