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IIA-CIA-Part2 exam is intended for individuals who have already passed the IIA-CIA-Part1 exam and who have at least two years of experience in internal auditing or a related field. IIA-CIA-Part2 exam is designed to test candidates on their ability to apply the principles of internal auditing in real-world situations, as well as their knowledge of the standards and guidelines set forth by the IIA. Candidates who pass the IIA-CIA-Part2 exam will be well-prepared to take on leadership roles within their organizations and to provide valuable insights and recommendations to management.
IIA-CIA-Part2 exam covers a wide range of topics related to internal auditing, including risk management, governance, control frameworks, and data analytics. Candidates are expected to have a thorough understanding of the internal audit process, including planning, fieldwork, reporting, and follow-up. IIA-CIA-Part2 exam also tests the candidate's knowledge of ethical principles and the ability to apply them in auditing situations.
How do I register for an IIA CIA Part 2 Exam?
You can register for your exam at the Pearson VUE website. You will need to create a profile with Pearson VUE and provide payment information prior to scheduling your exam. Once you have created your profile, you may register for your exam at any time.
NEW QUESTION # 44
Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?
- A. Structured interviews
- B. Facilitated team workshops
- C. Questionnaires.
- D. Surveys.
Answer: A
NEW QUESTION # 45
Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?
- A. Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.
- B. Use generalized audit software to match the claimant identification number with a master list of valid policyholders.
- C. Develop batch controls over all items received from a particular hospital and process those claims in batches.
- D. Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 46
Which of the following is true about surveys?
- A. A survey, like inspections and confirmations are best used to test the operating effectiveness of controls
- B. A survey's participants are likely to volunteer information that was not specifically requested
- C. A survey with open-ended questions is weaker than a structured interview
- D. A survey with closed-ended questions can produce quantifiable evidence
Answer: D
NEW QUESTION # 47
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
- A. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
- B. Feedback control data.
- C. Irrelevant and argumentative information.
- D. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
Answer: B
NEW QUESTION # 48
According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?
- A. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.
- B. The exit conference provides only anticipated results for inclusion in the final audit communication.
- C. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
- D. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
Answer: B
NEW QUESTION # 49
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
NEW QUESTION # 50
Which of the following is an example of the verification of internal documentary evidence?
- A. Reviewing a carrier's bill of lading.
- B. Recalculating a customer's purchase order.
- C. Reconciling a vendor's month-end statement.
- D. Vouching a copy of a sales invoice to receivables.
Answer: D
NEW QUESTION # 51
Which of the following situations would justify the removal of a finding from the final audit report?
- A. Management has already satisfactorily completed the recommended corrective action.
- B. Management has provided additional information that contradicts the findings.
- C. Management disagrees with the report findings and conclusions in their responses.
- D. Management believes that the finding is insignificant and unfairly included in the report.
Answer: B
NEW QUESTION # 52
An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if: I.
In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II.
Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III.
The cost of modifying the sales system to include a preventive control is less than $100,000.
- A. I, II, and III.
- B. I and III only.
- C. III only.
- D. I only.
Answer: D
NEW QUESTION # 53
While performing a follow-up of a concern about equipment-inventory tracking, which course of action is not necessary for the auditor to take?
- A. Ensure that the inherent risk has been eliminated as a result of resolving the issue.
- B. Ensure that the steps being taken resolve the condition disclosed by the initial finding.
- C. Ensure that the entity has begun to experience benefits as a result of resolving the issue.
- D. Ensure that controls have been implemented to prevent the issue from occurring again.
Answer: A
NEW QUESTION # 54
In which of the following situations would an internal auditor consider the need to outsource competencies and skills9
- A. The auditor believes that the audit client's actions contradict the organization's code of conduct The audit client disagrees and says his actions are for the organization's benefit
- B. An audit team member is allocated to conduct an assurance engagement m the sales unit. However, the same auditor performed an assurance engagement in that area just one year prior
- C. During an inventory count, the auditor ascertained that some goods were missing. The audit client argues that the auditor does not understand how inventory should be counted
- D. During the inspection of a wind turbine. an internal auditor notices that some replaced parts took used According to purchase documents, the parts still have a long lifespan.
Answer: D
NEW QUESTION # 55
Due to the expanded role of internal audit in the organization, the chief audit executive (CAE) of a construction company decides to employ the services of an outsourced audit service provider to augment the internal audit staff. What does the CAE need to consider in determining whether the outsourced audit service provider possesses the necessary knowledge, skills and other competencies to perform an audit engagement?
- A. Specific matters expected to be covered in the engagement communications.
- B. The reputation of the external service provider.
- C. The extent of other ongoing services the external service provider may be performing for the organization.
- D. The financial interest that the external service provider may have in the organization.
Answer: B
Explanation:
Section: Volume D
Explanation/Reference:
NEW QUESTION # 56
The efficiency of internal audit operations is best enhanced if workpaper standards:
- A. Permit the extent of documentation to vary according to engagement objectives.
- B. Allow access to workpapers by external parties if approved by senior management or the audit committee.
- C. Mandate the workpaper retention period.
- D. Require supervisors to initial and date each workpaper that they review.
Answer: A
NEW QUESTION # 57
A payroll clerk enters payroll transactions into the general ledger. The staff accountant reconciles the payroll ledgers. The payroll manager issues the manual payroll checks. The checks are maintained in a locked cabinet. The chief financial officer secures the keys to the cabinet. The payroll clerk distributes the manual checks.
The payroll manager reconciles the bank statements monthly. Which of the following audit steps best addresses the risk of fraud in the payroll process?
- A. Vouch a sample of items on bank reconciliations to supporting documentation.
- B. Determine whether an approved list of voided checks exists.
- C. Determine whether the cabinet keys are secured properly.
- D. Examine whether the payroll manager approves the reconciliations of ledgers.
Answer: A
NEW QUESTION # 58
According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results?
I.Summary reports may be issued separately from or in conjunction with the final report.
II.
Interim reports may be written or oral.
III.
Detailed reports should always be issued to the audit committee.
IV.
Interim reports should be used to communicate information which requires immediate attention.
- A. I and III only.
- B. I, II, and IV only.
- C. II and IV only.
- D. I, II, III, and IV.
Answer: B
NEW QUESTION # 59
White planning an audit engagement of a procurement card activity. which of the following actions should an internal auditor take to denary relevant risks and controls?
- A. Compare card transaction types against procurement card policy guidelines.
- B. Develop the scope and objectives of the engagement
- C. Determine how many cardholders exceeded their daily limit.
- D. Meet with the procurement card program administrator
Answer: D
NEW QUESTION # 60
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