IIA-CIA-Part2 exam questions for practice in 2022 Updated 600 Questions [Q173-Q197]

NEW QUESTION 173
A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?
1.Graded positive opinion.
2.Negative assurance opinion.
3.Limited assurance opinion.
4.Third-party opinion.

NEW QUESTION 174
Because of an abundance of high priority requests from management, an internal audit activity no longer has the resources to meet all of its commitments contained in the annual audit plan. Which of the following would be the best course of action for the chief audit executive to follow?

NEW QUESTION 175
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?

NEW QUESTION 176
Which of the following situations would justify the removal of a finding from the final audit report?

NEW QUESTION 177
According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization’s cash disbursements process?

NEW QUESTION 178
Recommendations should be included in the audit report in order to:

NEW QUESTION 179
According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management’s response to audit recommendations?

NEW QUESTION 180
The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

NEW QUESTION 181
While investigating a compromised Web server, an auditor found that the Web server logs had been deleted.
The auditor should recommend that the Web server logs be:

NEW QUESTION 182
Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
1. A supervisor’s initials on each workpaper.
2. An engagement workpaper review checklist.
3. A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
4. Performance appraisals that assess the quality of workpapers prepared by auditors.

NEW QUESTION 183
What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?

NEW QUESTION 184
Which of the following statements regarding the use of external contracted services by the chief audit executive (CAE) is false?

NEW QUESTION 185
Which characteristic of risk assessment makes it a useful tool for audit planning?

NEW QUESTION 186
According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

NEW QUESTION 187
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?

NEW QUESTION 188
A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

NEW QUESTION 189
Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?
Disregard a certain risk because management and the board accepted the risk in the past.
Abdicate the responsibility for a particular risk because it is not part of the audit plan.
Obtain agreement from senior management that unresolved audit issues will be reported to the board.Request corrective action from management in writing.

NEW QUESTION 190
An auditor evaluating excessive product rejection rates should investigate:
I. Communication between sales and production departments on sales returns.
II. Volume of product sales year-to-date in comparison to prior year-to-date.
III. Changes in credit ratings of customers versus sales to those customers.
IV. Detailed product scrap accounts and accumulations.

NEW QUESTION 191
An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?

NEW QUESTION 192
Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

NEW QUESTION 193
All of the following tools are employed to control large-scale projects except:

NEW QUESTION 194
Under what circumstances would internal audit not become involved when intentional misconduct is suspected?

NEW QUESTION 195
Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

NEW QUESTION 196
Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?

NEW QUESTION 197
In which of the following situations would it be most appropriate to employ the services of a forensic specialist?