New 2022 Latest Questions IIA-CIA-Part2 Dumps - Use Updated IIA Exam
Latest IIA-CIA-Part2 Exam Dumps IIA Exam from Training Expert Pass4suresVCE
Learn about the benefits of the IIA CIA Part 2 Exam
The CIA certification is a designation that is recognized worldwide. Achieving the certification not only shows management that you can do the job, but also shows that you are serious about your career. IIA CIA Part 2 exam dumps are the key of success.
The IIA CIA Certification Benefits
With The IIA's rigorous standards for professional competence, earning the CIA demonstrates to employers and clients alike that you possess the knowledge and skill set necessary to perform effectively in your position as an internal auditor.
As a certified internal auditor, you will have increased credibility with senior management and other stakeholders because you are certified by the world's largest professional association dedicated to advancing the practice of internal auditing.
The CIA designation offers its holders a greater chance of promotion and salary increase, as well as an advantage over other candidates when applying for jobs.
NEW QUESTION 29
According to the International Professional Practices Framework, the internal audit activity's decision to defer follow-up of recommendations and management's corrective actions until the next scheduled engagement for the area is justified when:
- A. The significance of the finding or recommendation will allow auditors to perform monitoring by receiving periodic updates from management on corrective actions taken.
- B. The reported findings or recommendations are significant enough to require immediate action by management.
- C. Management has adequately understood and appropriately accepted the risk of not taking action to implement the recommendation.
- D. The action taken by management to address the recommendation is sufficient when weighed against the importance of the finding.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 30
A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?
- A. Evaluate the completeness of the report and management's responses to identified deficiencies.
- B. Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.
- C. Assess whether senior management adequately supports and promotes the internal control culture described in the report.
- D. Assert whether the described and reported control processes and systems exist.
Answer: A
NEW QUESTION 31
The chief audit executive (CAE) decided that based on management's oral response, the action taken on an audit observation for a minor improvement in the client's process is sufficient and no further follow-up is necessary. Which of the following would be the best statement regarding the action of the CAE?
- A. The CAE action is not acceptable, as follow-up on the issue is critical until a written response is obtained from management.
- B. The CAE action is acceptable as long as the issue has been escalated to the board to get their position on the issue.
- C. The CAE action is acceptable as long as the follow-up is sufficient when weighed against the relative importance of the recommendation.
- D. The CAE action is not acceptable, as a follow-up audit is needed to ensure that action is really taken by management.
Answer: C
NEW QUESTION 32
Because of a new marketing initiative, an organization has reduced requirements for extending credit to new customers. As a result, outstanding accounts receivable as a percentage of revenue has increased significantly during the past two years. Which of the following would be least useful in monitoring this finding?
- A. Updates from the controller regarding the status of corrective actions.
- B. Updates from the manager of accounts receivable regarding collection of outstanding receivables.
- C. Updates from the credit and marketing personnel tasked with reevaluating credit policies.
- D. Updates from the information technology division regarding development of a new accounts receivable system.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 33
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.
- A. I and II only
- B. I only
- C. II, III, and IV only
- D. II and III only
Answer: A
Explanation:
Section: Volume B
NEW QUESTION 34
What is the primary factor that determines the depth and breadth of audit follow-up?
- A. The availability of audit personnel and financial resources.
- B. The engagement client's written response to the audit findings.
- C. The auditor's assessment of personnel responsible for correcting audit findings.
- D. The auditor's assessment of risk associated with the audit findings.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 35
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive but performs no further follow-up. The auditor's actions would:
I. Be in violation of the IIA Code of Ethics for withholding meaningful information.
II. Be in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
III. Not be in violation of either the IIA Code of Ethics or Standards.
- A. III only
- B. II only
- C. I only
- D. I and II only
Answer: A
NEW QUESTION 36
Which of the following would not be an appropriate step for an internal auditor to perform during an assessment of compliance with an organization's privacy policy?
- A. Analyze access to permanent files and reports containing confidential information.
- B. Determine who can access databases containing confidential information.
- C. Evaluate the government's security measures related to confidential information received from the organization.
- D. Evaluate the organization's privacy policy to determine if appropriate information is covered.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 37
Which of the following topics must the internal audit staff discuss with management during the exit conference?
1.Issues identified during the audit.
2.Evaluation criteria used to select controls for testing.
3.Staff who were interviewed during the audit.
4.The reporting process for the draft and final report.
- A. 1 and 3 only
- B. 1 and 4 only
- C. 2 and 4 only
- D. 2 and 3 only
Answer: B
NEW QUESTION 38
An internal auditor has completed an audit of an organization's activities and is ready to issue a report.
However, the client disagrees with the internal auditor's conclusions. The auditor should:
- A. Withhold the issuance of the audit report until agreement on the issues is obtained.
- B. Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.
- C. Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.
- D. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
Answer: D
NEW QUESTION 39
What is the primary factor that determines the depth and breadth of audit follow-up?
- A. The availability of audit personnel and financial resources.
- B. The engagement client's written response to the audit findings.
- C. The auditor's assessment of personnel responsible for correcting audit findings.
- D. The auditor's assessment of risk associated with the audit findings.
Answer: D
Explanation:
Section: Volume B
Explanation
NEW QUESTION 40
Which of the following statements is true regarding the communication of audit engagement observations?
- A. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only
- B. Criteria, condition, cause, and effect must be communicated for material observations only
- C. Criteria, condition, cause, and effect must be communicated for all engagement observations.
- D. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.
Answer: C
NEW QUESTION 41
Which of the following is an example of the verification of internal documentary evidence?
- A. Reviewing a carrier's bill of lading.
- B. Reconciling a vendor's month-end statement.
- C. Vouching a copy of a sales invoice to receivables.
- D. Recalculating a customer's purchase order.
Answer: C
NEW QUESTION 42
A code of business conduct provides:
- A. A program to anonymously report irregularities to authorities.
- B. A passive method of fraud deterrence.
- C. An alternative to "tone at the top" programs.
- D. A fraud avoidance plan that does not explicitly describe punishments for violations.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION 43
Which of the following is the primary purpose of financial statement audit engagements?
- A. To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.
- B. To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.
- C. To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.
- D. To assess the efficiency and effectiveness of the accounting department.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 44
Which of the following risks assumes an absence of compensating controls in the area being reviewed?
- A. Detection risk.
- B. Sampling risk.
- C. Control risk.
- D. Inherent risk.
Answer: D
NEW QUESTION 45
A code of business conduct should include which of the following to increase its deterrent effect?
1. Appropriate descriptions of penalties for misconduct.
2. A notification that code of conduct violations may lead to criminal prosecution.
3. A description of violations that injure the interests of the employer.
4. A list of employees covered by the code of conduct.
- A. 1 and 3
- B. 3 and 4
- C. 2 and 4
- D. 1 and 2
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 46
What decision-making approach should a facilitator initiate if a group addresses an unfamiliar situation during a control self-assessment session?
- A. Consensus building.
- B. Spontaneous agreement.
- C. Compromise.
- D. Majority voting.
Answer: A
NEW QUESTION 47
An audit of a company's accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:
- A. Transferred the individuals who maintained the vendor master file to another department to ensure that responsibilities are appropriately segregated.
- B. Changed the access control system to prevent employees from both entering invoices and approving payments.
- C. Modified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.
- D. Compared the vendor and employee master files to determine if any unauthorized vendors have been added to the vendor master file.
Answer: C
NEW QUESTION 48
A code of ethics within the internal auditing profession is necessary in order to:
- A. Ensure that all members of the profession perform at approximately the same level of competence.
- B. Reduce the likelihood that members of the profession will be sued for substandard work.
- C. Provide guidance to internal auditors in their service to others.
- D. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION 49
Which of the following would cause a company's accounts receivable turnover ratio to decrease steadily over a three-year period?
- A. Invoices provided on a weekly rather than a monthly basis.
- B. A more liberal credit policy.
- C. Increased cash sales.
- D. An increase in the discount offered for early payment.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 50
Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?
- A. Review of the external auditor's risk assessment.
- B. Consultation with senior management and the audit committee.
- C. Review of organizational strategic plans and operational plans.
- D. Review of corporate performance reporting and benchmarking.
Answer: D
NEW QUESTION 51
Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?
- A. Review of the external auditor's risk assessment.
- B. Consultation with senior management and the audit committee.
- C. Review of organizational strategic plans and operational plans.
- D. Review of corporate performance reporting and benchmarking.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 52
......
Updated Test Engine to Practice IIA-CIA-Part2 Dumps & Practice Exam: https://www.pass4suresvce.com/IIA-CIA-Part2-pass4sure-vce-dumps.html
Pass IIA IIA-CIA-Part2 PDF Dumps Recently Updated 600 Questions: https://drive.google.com/open?id=1CWh32FE630lWJ8dWT5IC8XM4xuXUATTI