2025 Actual4Exams IIA IIA-CIA-Part2 Dumps and Exam Test Engine
IIA IIA-CIA-Part2 DUMPS WITH REAL EXAM QUESTIONS
IIA-CIA-Part2 exam is a certification exam for internal auditors who want to demonstrate their knowledge and expertise in the practice of internal auditing. IIA-CIA-Part2 exam is part of the Certified Internal Auditor (CIA) certification program offered by the Institute of Internal Auditors (IIA). The IIA-CIA-Part2 exam covers a wide range of topics related to the practice of internal auditing, including governance and risk management, communication, engagement planning, and conducting internal audit engagements.
NEW QUESTION # 114
What is the most important risk in determining the validity of construction delay claims?
- A. Contractor claims may be submitted prior to completion of the work.
- B. Contractor claims may be understated.
- C. Contractor claims may include costs considered in the fixed-price portion of the work.
- D. Contractor claims may include subcontractor estimates of balances due to the subcontractor.
Answer: C
NEW QUESTION # 115
The use of standard operating procedure questionnaires in audit fieldwork can be beneficial because.
- A. These questionnaires do not normally require prior clearance with management of the audited area.
- B. Standard operating procedures are essential to the effectiveness and efficiency of operations.
- C. These questionnaires can both identify discrepancies and educate clients.
- D. These questionnaires are more comprehensive than are other types of techniques for gathering data during fieldwork.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 116
While planning for an accounts payable audit an internal auditor performs an entity level controls analysis. Which of the following statements is true regarding me approach used by the auditor?
- A. It enables the auditor to identify the inherent risks to the effective operation of accounts payable process controls.
- B. it enables the auditor to understand the accounts payable process and its flow, including key steps and systems.
- C. It enables the auditor to understand the framework of the activities and associated accounts payable subprocesses
- D. It enables the auditor to categorize the population of transactions within the accounts payable process
Answer: C
Explanation:
Performing an entity-level controls analysis helps the auditor understand the overarching framework of activities and subprocesses within the accounts payable function. This approach provides a high-level view of the control environment and how different processes interrelate and contribute to the overall control objectives. By understanding the framework, the auditor can identify key controls, assess their design and implementation, and determine areas of potential risk. This foundational understanding is crucial before delving into more detailed, transaction-level testing.
Reference:
Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2130 - Control.
NEW QUESTION # 117
While investigating a compromised Web server, an auditor found that the Web server logs had been deleted.
The auditor should recommend that the Web server logs bE.
- A. Encrypted to ensure that the logs cannot be deleted.
- B. Restored automatically to the Web server from backup files.
- C. Accessible by administrative users only
- D. Generated and maintained on a separate secure server.
Answer: D
NEW QUESTION # 118
A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?
I. Recycling and reuse.
II. Elimination at the source.
III. Energy conservation.
IV. Recovery as a usable product Treatment.
- A. IV, II, I, III, V.
- B. III, IV, II, V, I.
- C. I, III, IV, II, V.
- D. V, II, IV, I, III.
Answer: A
NEW QUESTION # 119
The human resources (HR) department was last reviewed three years ago and is due for an assurance engagement after undergoing recent process changes. Which of the following would the most effective option identify the HR department's risks and controls?
- A. Review the previous internal audit report and locus on key audit observations and action plans
- B. Meet with the chief operating officer 10 obtain Information about the MR department
- C. Review the organization's risk strategy and risk appetite framework
- D. Discuss the department's present strategies 'and objectives with the head of the HR department
Answer: D
Explanation:
The most effective way to identify the HR department's risks and controls, especially after recent process changes, is to discuss the department's present strategies and objectives with the head of the HR department. This approach allows the auditor to gain current and relevant insights directly from the person most knowledgeable about the department's current operations, risks, and controls. It ensures that the auditor understands the current environment, any new challenges, and the specific controls in place to mitigate risks. This method is more comprehensive and current compared to reviewing past reports or generalized organizational frameworks, which might not reflect recent changes accurately.
Reference:
The Institute of Internal Auditors (IIA) Standard 2010 - Planning: "The chief audit executive must establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organization's goals." IIA Practice Guide on "Engaging with Stakeholders"
NEW QUESTION # 120
Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?
- A. Testing.
- B. Evaluating findings.
- C. Reviewing internal controls.
- D. Determining the scope.
Answer: D
NEW QUESTION # 121
A manager of one of a retailer's several retail outlets is stealing cash from cash sales, recording the sales as accounts receivable, and subsequently writing off the fictitious accounts receivable as bad debts. Which of the following comparisons would be most effective in signaling the possibility of such a fraud?
- A. Percentage of past-due accounts receivable, compared to that of previous years.
- B. Bad debt expense as a percentage of sales, compared to that of previous years.
- C. Bad debt expense as a percentage of sales, compared to that of the other outlets.
- D. Percentage of past-due accounts receivable, compared to that of the other outlets.
Answer: C
NEW QUESTION # 122
Which of the following best exemplifies having effective risk management and internal control processes?
- A. Relevant risk indicators and mitigation plans are in place
- B. Business profitability is likely to be achieved
- C. Risk information is communicated to customers and suppliers
- D. All risks are identified and assessed
Answer: B
NEW QUESTION # 123
When presenting an observation m writing which or the Mowing is usually true regarding the level of detail provided?
1. The description of the observation in the final audit report contains more detail then the description m the engagement workpapers
2. The description of the observation m the engagement workpapers contains more detail than the descriptor n a preliminary observation document
3. A preliminary observation document contains more detail than tie observation description in the final audit report
4. A preliminary observation document contains more detail than tie observation description in the engagement workpapers
- A. 1 and 2
- B. 3 and 4
- C. 1 and 4
- D. 2 and3
Answer: D
Explanation:
In internal auditing, the engagement workpapers typically contain more detailed descriptions of observations than the preliminary observation document because workpapers serve as the primary evidence and record of the audit procedures and findings. Similarly, a preliminary observation document generally contains more detail than the final audit report, as it serves as an initial, comprehensive documentation of the findings before they are summarized for final reporting.
References:
* The Institute of Internal Auditors (IIA) Standards
* Internal Audit Documentation and Reporting Standards
NEW QUESTION # 124
According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?
1.Coordinate post-engagement conferences to discuss the final audit report with management.
2.Include management's responses in the final audit report.
3.Review and approve the final audit report.
4.Determine who will receive the final audit report.
- A. 1 and 2
- B. 2 and 3
- C. 1 and 4
- D. 3 and 4
Answer: D
NEW QUESTION # 125
A post-audit questionnaire sent to audit clients is an effective mechanism for:
- A. Substantiating audit observations.
- B. Improving future audit engagements.
- C. Validating process flow.
- D. Promoting the internal audit activity.
Answer: B
NEW QUESTION # 126
According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?
- A. Having no active role or involvement in the risk management process.
- B. Participating with management in identifying and evaluating risks.
- C. Auditing the risk management process for reasonableness.
- D. Coordinating and managing the risk management process.
Answer: D
Explanation:
According to the Institute of Internal Auditors (IIA) guidance, the independence and objectivity of the internal audit function are fundamental principles. Independence is compromised if the internal audit function takes on roles or responsibilities that are part of management's duties. Coordinating and managing the risk management process is a management responsibility. If internal auditors assume this role, it impairs their ability to remain independent and objective when auditing the effectiveness of the risk management process. Reference: IIA Standard 1112 - Chief Audit Executive Roles Beyond Internal Auditing
NEW QUESTION # 127
Reviewing internal audit report drafts with clients is:
1.Required according to the Standards.
2.A form of courtesy.
3.Ethically mandated.
4.A form of validation.
- A. 2 and 4 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 3 and 4 only
Answer: A
NEW QUESTION # 128
When presenting an observation m writing which or the Mowing is usually true regarding the level of detail provided?
1. The description of the observation in the final audit report contains more detail then the description m the engagement workpapers
2. The description of the observation m the engagement workpapers contains more detail than the descriptor n a preliminary observation document
3. A preliminary observation document contains more detail than tie observation description in the final audit report
4. A preliminary observation document contains more detail than tie observation description in the engagement workpapers
- A. 1 and 2
- B. 3 and 4
- C. 1 and 4
- D. 2 and3
Answer: D
NEW QUESTION # 129
The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?
- A. Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.
- B. Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.
- C. Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
- D. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION # 130
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