Pass IIA-CIA-Part2 Exam Guide

Practice of Internal Auditing Questions and Answers

Question 25

Which of the following parties is accountable for ensuring adequate support for conclusions and opinions readied by the internal audit activity while relying on external auditors' work?

Options:

Board of directors

External auditors

Chief audit executive

Senior management

Question 26

Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?

Options:

Senior management is charged with overseeing the establishment risk management and control processes.

The chief audit executive is responsible for overseeing the evaluation risk management and control processes.

Operating managers are responsible for assessing risks and controls in their departments.

Internal auditors provide assurance about risk management and control process effectiveness.

Question 27

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

Options:

Ask the CEO to determine the scope and objectives of the engagement

Request that the board disclose its concerns over governance for inclusion in the engagement

Discuss the concerns with the finance manager and work together to agree on the engagement objectives

Review previous audit reports from the area and develop engagement objectives to address the area's key risks and controls

Question 28

An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?

Options:

Switch the existing assurance engagement into a fraud investigation engagement

Extend the audit scope and perform additional testing of controls on other related areas

Review the poor year's transaction volume and amounts paid compared to the poor year's budget

Perform data analytics on the supplier's information, invoiced amounts, and payments performed

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Practice of Internal Auditing Questions and Answers

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