Free IIA-CIA-Part2 pdf Files With Updated and Accurate Dumps Training [Q250-Q264]

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Free IIA-CIA-Part2 pdf Files With Updated and Accurate Dumps Training

Top-Class IIA-CIA-Part2 Question Answers Study Guide

IIA-CIA-Part2 Certification Exam covers a wide range of topics related to the practice of internal auditing. These topics include risk management, internal control, fraud detection, legal and regulatory compliance, and communication skills. IIA-CIA-Part2 exam is divided into multiple-choice questions, which test the candidate’s knowledge of these topics. Candidates are required to pass the exam with a minimum score of 600 on a scale of 250-750.

IIA-CIA-Part2 certification exam is highly respected in the internal auditing profession and is recognized globally. Internal Audit Engagement certification provides individuals with a competitive edge when seeking employment opportunities in the field of internal auditing. Internal Audit Engagement certification helps individuals enhance their skills and knowledge in the profession, which can lead to better job prospects and career advancement.

NO.250 An internal auditor wants to obtain management’s evaluation of the organizational risk culture. Because there are more than 30 geographically dispersed managers, one-to-one interviews are not possible. Which of the following is the most efficient option for the auditor to adopt?

Send out a survey with a few open questions, such as “What is your impression of the risk culture in our organization?”

Send out a survey with statements and request defined answers, such as “strongly agree” and “strongly disagree.”

Send out an email asking managers to evaluate the risk culture and provide detailed justification.

Send out an email asking those who have something to report on organizational risk culture to step forward.

To efficiently gather input from a large, geographically dispersed group, a structured survey with scaled responses (B) is most effective. This allows for easy comparison and aggregation of results. Options A and C are less efficient due to open-ended responses, while D is too narrow.

NO.251 Which of the following is not an outcome of control self-assessment?

Informal, soft controls are omitted, and greater focus is placed on hard controls.

The entire objectives-risks-controls infrastructure of an organization is subject to greater monitoring and continuous improvement.

Internal auditors become involved in and knowledgeable about the self-assessment process.

Nonaudit employees become experienced in assessing controls and associating control processes with managing risks.

NO.252 An organization’s policies allow buyers to authorize expenditures up to $50,000 without any other approval.
Which of the following audit procedures would be most effective in determining if fraud in the form of payments to fictitious companies has occurred?

Use generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.

Develop a snapshot technique to trace all transactions by suspected buyers.

Use generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.

Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.

Section: Volume C

NO.253 With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?
1.Business unit management.
2.Chief audit executive.
3.Audit committee.
4.Chief executive officer.

1 and 2 only

1 and 3 only

2 and 3 only

1, 2, 3, and 4

NO.254 If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

The experience and knowledge of the auditor.

The adverse consequences of noncompliance.

The acceptable level of risk of making an incorrect audit conclusion.

The cost of performing auditing procedures on sample selections.

NO.255 An internal auditor has been assigned to facilitate a risk and control self-assessment for the finance group.
Which of the following is the most appropriate role that she should assume when facilitating the workshop?

Express an opinion on the participants’ inputs and conclusions as the assessment progresses.

Provide appropriate techniques and guidelines on how the exercise should be undertaken.

Evaluate and report on all issues that may be uncovered during the exercise.

Screen and vet participants so that the most appropriate candidates are selected to participate in the exercise.

NO.256 Which of the following statements describes an engagement planning best practice?

It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.

If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.

The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.

Engagement planning activities include setting engagement objectives that align with audit client’s business objectives.

Best practices for engagement planning involve setting objectives that align with the business objectives of the audit client. This ensures that the audit is relevant and provides valuable insights to the organization.
Planning should also be systematic and documented, ensuring that specific testing procedures and expected outcomes are outlined and communicated. References: = IIA Standard 2200 – Engagement Planning and IIA Practice Guide: “Planning the Engagement”.

NO.257 Which of the following actions is related to the preliminary survey process?

Determining if controls are effective.

Preparing the engagement work program.

Identifying the current controls.

Completing a detailed test of controls.

Section: Volume C

NO.258 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?

Determine who can access databases containing confidential information.

Evaluate the organization’s privacy policy to determine if appropriate information is covered.

Analyze access to permanent files and reports containing confidential information.

Evaluate the government’s security measures related to confidential information received from the organization.

NO.259 Which of the following actions is the most appropriate response for an internal auditor to take when a significant risk is identified during a consulting engagement?

Report the risk identified from the consulting engagement to senior management.

Do not include the risk in the assessment of risk management processes, as that is management’s responsibility.

Do not report the risk, as it is out of scope for the consulting engagement.

Include the risk identified from the consulting engagement in the next annual risk assessment only if it is part of the consulting engagement objectives.

When a significant risk is identified during a consulting engagement, the most appropriate response is to report the risk to senior management. Even if the engagement is consulting in nature, it is still crucial for the internal audit activity to ensure that significant risks are communicated to those responsible for managing them.
IIA References:
* IIA Standard 2120: Risk Management requires that internal auditors evaluate the effectiveness of risk management processes and communicate significant risks to senior management. This applies regardless of whether the engagement is assurance or consulting.
* The Practice Guide on Consulting Services advises that internal auditors must ensure that significant risks identified during consulting engagements are brought to the attention of senior management so that they can take appropriate action.

NO.260 The chief audit executive (CAE) should determine whether the internal audit activity has confirmed the status of all of management’s corrective actions Doing so would help the CAE assess which of the following?

Disclosure risk.

Residual risk

Compliance risk

Inherent risk

When the CAE determines whether the internal audit activity has confirmed the status of all management’s corrective actions, it helps in assessing residual risk. Residual risk is the risk that remains after management’s actions to mitigate inherent risk. By confirming the status of corrective actions, the CAE can evaluate whether the risks identified during the audit have been adequately addressed and what level of risk still exists, ensuring that the internal control environment is effective and that management’s risk responses are appropriate.
COSO’s Enterprise Risk Management Framework and The IIA’s International Standards for the Professional Practice of Internal Auditing.

NO.261 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 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?

The more successful region spends 30 percent more money on education than does the other region.

A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.

The more successful region spends more money per student on education than does the other region.

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.

NO.262 An internal auditor examined a nostatistical sample of open accounts receivable balances and discovered that 10 out of 60 exceeded the approved unseated credit limit threshold defined by the organization’s policy What should the auditor document in the workpapers?

Credit limit over drafts are not monitored in accordance with the organizations policy

Seventeen percent of customers’ open balances in the sample exceed their approved unsecured credit rent

The threshold for credit limits defined by the organization’s policy is not adequate

Management should perform monthly monitoring of open customer balances

When documenting findings from a nonstatistical sample, internal auditors should record the factual observations and quantify the results where possible. In this case, the auditor should document that 17% of the sampled accounts receivable balances exceeded the approved unsecured credit limit. This provides a clear, quantifiable basis for the finding, which is critical for accurate reporting and for management to understand the scope of the issue. Documenting this percentage also supports the auditor’s conclusions and recommendations for corrective actions.
Reference:
The Institute of Internal Auditors (IIA) Practice Guide: Audit Sampling.
IIA Standard 2310 – Identifying Information

NO.263 Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?

Sampling risk.

Audit risk.

Residual risk.

Inherent risk

NO.264 An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?
1. Allow the auditor to decide whether to extend the audit engagement.
2. Determine whether the work already completed is sufficient to conclude the engagement.
3. Provide the auditor feedback on areas of improvement for future engagements.
4. Provide the auditor with instructions and directions to complete the audit.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

According to IIA guidance, the chief audit executive (CAE) has several appropriate options when the audit objectives are not complete despite the auditor having worked the full amount of budgeted hours. The CAE should determine if the work already completed is sufficient to conclude the engagement (2). The CAE should also provide feedback on areas of improvement for future engagements (3) and give instructions and directions to complete the audit (4). Allowing the auditor to decide whether to extend the audit engagement (1) is not typically an appropriate option as this decision should involve senior management or the CAE to ensure alignment with organizational priorities and resource allocation. Reference: = IIA Standard 2010 – Planning, IIA Standard 2020 – Communication and Approval, IIA Standard 2040 – Policies and Procedures.

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