IIA-CIA-PART2 practice questions 81–90

1. Question 81 · 475 in bank

   Which of the following is not likely to be included as an audit step when assessing vendor performance policies?

   • ADetermine whether agreed-upon lot sizes were sent by vendors.
   • BDetermine whether only authorized items were received from vendors.
   • CDetermine whether the balances owed to vendors are correct.
   • DDetermine whether the quality of the goods purchased from the vendors has been satisfactory.

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   Answer: C

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2. Question 82 · 475 in bank

   The chief audit executive (CAE) notes during review of the final report of an assurance engagement that management has decided to accept the risks of two significant exposures identified by the audit. Which of the following actions by the CAE would be least prudent in these circumstances?

   • AImplement follow-up procedures to monitor the potential impact of those risks.
   • BReview the working papers and conclusions as to the perceived residual risk.
   • CMeet with senior management to consider their reasoning for the decision.
   • DMeet with the auditor-in-charge to review the conclusions.

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   Answer: A

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3. Question 83 · 475 in bank

   According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

   • AThe CAE can release prior internal audit reports with the approval of the board and senior management.
   • BThe CAE can employ judgment and release prior audit results as they deem appropriate and necessary.
   • CThe CAE can only release prior information outside the organization when mandated by legal or statutory requirements.
   • DThe CAE can release prior information provided it is as originally published and distributed within the organization.

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   Answer: B

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4. Question 84 · 475 in bank

   According to the International Professional Practices Framework, which of the following is correct regarding conducting and reporting follow-up activities by the internal audit activity (IAA)?

   • ADue to management changes, the IAA is advised by management that no further work will be done. Further follow-up work is not required as management has accepted the related risk.
   • BA newly appointed auditor immediately proceeds to conduct follow-up testing based on previous work performed for the engagement and then reports the results to the chief audit executive (CAE).
   • CManagement has stopped implementing several key recommendations citing a growing disagreement with their effectiveness. The auditor communicates the situation to the CAE who then escalates the matter to senior management.
   • DIn situations where the identified risk may have a significant impact to the business and senior management has accepted the risk, it is not necessary for the

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   Answer: C

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5. Question 85 · 475 in bank

   An organization has developed a large database that tracks employees, employee benefits, payroll deductions, job classifications, and other similar information. The internal auditor reviews the retirement benefits plan and determines that the pension and medical benefits have been changed several times in the past ten years. The auditor wishes to determine whether there is justification to perform further audit investigation. The most appropriate audit procedure would be to:

   • AReview the trend of overall retirement expense over the last ten years. If the retirement expense increased, it would indicate the need for further investigation.
   • BUse generalized audit software to select a monetary-unit sample of retirement pay, and determine whether each retired employee was paid correctly.
   • CReview reasonableness of retirement pay and medical expenses on a per-person basis stratified by which plan was in effect when the employee retired.
   • DUse generalized audit software to select an attributes sample of retirement pay, and perform detailed testing to determine whether each person chosen was

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   Answer: C

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6. Question 86 · 475 in bank

   Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

   • AObservation.
   • BTracing.
   • CRe-computation.
   • DVouching.

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   Answer: B

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7. Question 87 · 475 in bank

   All of the following tools are employed to control large-scale projects except:

   • AProgram evaluation and review technique (PERT).
   • BCritical path method.
   • CStatistical process control.
   • DGantt charts.

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   Answer: C

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8. Question 88 · 475 in bank

   Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture? I. Facilitated meeting - II. Survey - III. Management-produced analysis

   • AI only
   • BI and III only
   • CII and III only
   • DI, II, and III

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   Answer: C

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9. Question 89 · 475 in bank

   An internal auditor compares real-time gasoline production data to corresponding final gasoline production reports and finds minor but consistent daily discrepancies. If the auditor is concerned about theft, which of the following next steps is most consistent with IIA guidance?

   • AReconcile online data and the final production reports to gasoline sales reports.
   • BContact security personnel as evidence suggests gasoline is being stolen from production premises.
   • CConfront the production manager and ask her to explain the differences between real-time and reported data.
   • DReview the processes used to collect the production data and to compile the final production reports.

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   Answer: D

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10. Question 90 · 475 in bank

    An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group. Which of the following is the most appropriate role that she should assume when facilitating the workshop?

    • AExpress an opinion on the participants' inputs and conclusions as the assessment progresses.
    • BProvide appropriate techniques and guidelines on how the exercise should be undertaken.
    • CEvaluate and report on all issues that may be uncovered during the exercise.
    • DScreen and vet participants so that the most appropriate candidates are selected to participate in the exercise.

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    Answer: B

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IIA-CIA-PART2 practice, question 81. 475 questions available.