2021 Update CIA Exam Part Two IIA-CIA-Part2 Questions and answers

1. IIA-CIA-Part2 Free Questions IIA-CIA-Part2 Free Questions CIA Exam Part Two: Practice of Internal CIA Exam Part Two: Practice of Internal Auditing Auditing https://www.passquestion.com/ https://www.passquestion.com/IIA-CIA-Part2 IIA-CIA-Part2.html .html

2. Question 1 Question 1 An internal auditor is reviewing a new automated human resources system. The system An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes The best control to ensure that the table is updated correctly for only valid pay changes would be to: would be to: A. Limit access to the data table to management and line supervisors who have the A. Limit access to the data table to management and line supervisors who have the authority to determine pay rates. authority to determine pay rates. B. Require a supervisor in the department, who does not have the ability to change the B. Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization. table, to compare the changes to a signed management authorization. C. Ensure that adequate edit and reasonableness checks are built into the automated C. Ensure that adequate edit and reasonableness checks are built into the automated system. system. D. Require that all pay changes be signed by the employee to verify that the change goes D. Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee. to a bona fide employee. Answer: B Answer: B

3. Question 2 Question 2 Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. follow-up of audit recommendations when developing engagement work schedules. Does the CAE’s decision violate the Standards? Does the CAE’s decision violate the Standards? A. No, because the Standards do not specify whether follow-up is needed. A. No, because the Standards do not specify whether follow-up is needed. B. No, because when there is evidence of sufficient motivation by the client, there is no need for B. No, because when there is evidence of sufficient motivation by the client, there is no need for follow-up action. follow-up action. C. Yes, because scarcity of resources is not a sufficient reason to omit follow-up action. C. Yes, because scarcity of resources is not a sufficient reason to omit follow-up action. D. Yes, because the Standards require the auditors to determine whether the client has appropriately D. Yes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor's recommendations. implemented all of the auditor's recommendations. Answer: C Answer: C

4. Question 3 Question 3 Monetary-unit sampling is most useful when the internal auditor: Monetary-unit sampling is most useful when the internal auditor: A. Is testing the accounts payable balance. A. Is testing the accounts payable balance. B. Cannot cumulatively arrange the population items. B. Cannot cumulatively arrange the population items. C. Expects to find several material errors in the sample. C. Expects to find several material errors in the sample. D. Is concerned with overstatements. D. Is concerned with overstatements. Answer: D Answer: D

5. Question 4 Question 4 If an auditor expects to find numerous discrepancies between recorded values and audited values of If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate? sample selections, which sampling technique would be most appropriate? A. Attributes sampling. A. Attributes sampling. B. Probability-proportional-to-size sampling. B. Probability-proportional-to-size sampling. C. Difference estimation sampling. C. Difference estimation sampling. D. Discovery sampling. D. Discovery sampling. Answer: C Answer: C

6. Question 5 Question 5 An organization's internal auditors are reviewing production costs at a gas-powered electrical An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to: The auditors should immediately report the concern to: A. The regulatory agency. A. The regulatory agency. B. Plant management. B. Plant management. C. A plant health and safety officer. C. A plant health and safety officer. D. The risk management function. D. The risk management function. Answer: B Answer: B

7. Question 6 Question 6 A governmental auditor was assigned to determine reasons why the students in one region scored A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. research showed that there is a direct correlation between public financial support and student results. Which of the following is most likely to explain the difference in the regional results? Which of the following is most likely to explain the difference in the regional results? A. The more successful region spends 30 percent more money on education than does the other A. The more successful region spends 30 percent more money on education than does the other region. region. B. A higher percentage of the general tax fund is spent on education in the more successful region B. A higher percentage of the general tax fund is spent on education in the more successful region than in the other region. than in the other region. C. The more successful region spends more money per student on education than does the other C. The more successful region spends more money per student on education than does the other region. region. D. The more successful region has increased educational spending by an average of 10 percent each D. The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent. year for the last three years, whereas the other region's increase averaged only three percent. Answer: C Answer: C

8. Question 7 Question 7 An audit department has received anonymous information that an employee has allegedly been able An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator? who might be the perpetrator? A. Confirm accounts receivable. A. Confirm accounts receivable. B. Confirm accounts payable. B. Confirm accounts payable. C. Review the endorsements and banks of deposit on customers' canceled checks. C. Review the endorsements and banks of deposit on customers' canceled checks. D. Flowchart and analyze key controls in the cash receipts process. D. Flowchart and analyze key controls in the cash receipts process. Answer: D Answer: D

9. Question 8 Question 8 When assessing the risk associated with an activity, an internal auditor should: When assessing the risk associated with an activity, an internal auditor should: A. Determine how the risk should best be managed. A. Determine how the risk should best be managed. B. Provide assurance on the management of the risk. B. Provide assurance on the management of the risk. C. Modify the risk management process based on risk exposures. C. Modify the risk management process based on risk exposures. D. Design controls to mitigate the identified risks. D. Design controls to mitigate the identified risks. Answer: B Answer: B

10. Question 9 Question 9 Which of the following processes real-transaction data through auditor-developed test programs? Which of the following processes real-transaction data through auditor-developed test programs? A. Generalized audit software. A. Generalized audit software. B. Tracing. B. Tracing. C. Parallel simul-ation. C. Parallel simul-ation. D. Mapping. D. Mapping. Answer: C Answer: C

11. Question 10 Question 10 Which of the following would provide the greatest assurance of the accuracy of a computer Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales? program's computation of freight charges for catalog sales? A. Use discovery sampling, selecting transactions from invoices which should have freight charges A. Use discovery sampling, selecting transactions from invoices which should have freight charges added to them. added to them. B. Use either test data or parallel simul-ation to test the computer application. B. Use either test data or parallel simul-ation to test the computer application. C. Use difference estimation, selecting transactions from invoices which should have freight charges C. Use difference estimation, selecting transactions from invoices which should have freight charges added to them. added to them. D. Use generalized audit software to select a monetary-unit sample of invoices that have been billed D. Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers. to customers. Answer: B Answer: B