Practice IIA-CIA-Part2-3P Exam Online

Question 1

Which of the following best describes a random sample of invoices?

A : The internal auditor selected all invoices that were signed by fewer than two managers.

B : The internal auditor identified a starting point and chose every 15th invoice after that.

C : The internal auditor selected all invoices above an amount she considered significant.

D : The internal auditor sorted the invoices by vendor and chose the two most recent invoices from each.

Answer: B

Question 2

According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

A : The organization's audit universe is extensive and diverse.

B : There has been an increase in unanticipated requests for advisory work.

C : Previous work provided by the external service provider has been of great quality and value.

D : A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.

Answer: B

Question 3

An internal auditor is planning an engagement in the wood pellet production unit. She reviews the balance sheet and notes considerable amounts of wood pellet produced for sale. She also learns that there was an accidental fire a few months ago that resulted in damages to produced goods. Which of the following would be the most appropriate way to establish whether amounts of pellet recorded in the balance sheet are correct?

A : Send an inquiry to pellet production unit managers and ask them to respond promptly in the form of a signed confirmation letter.

B : Review monthly pellet production volumes and perform a reasonableness test to assess whether the amount recorded is reasonable, giving consideration to inventory losses from the fire.

C : Request data on sold and produced wood pellets and analyze whether the difference reconciles with the balance sheet.

D : Conduct a surprise physical inspection and inventory of wood pellets at the production site.

Answer: D

Question 4

An internal auditor is examining the procurement process for design adequacy. Which of the following conclusions by the auditor would most likely suggest further testing is needed?

A : Design is adequate with no significant control issues.

B : Design is adequate; however, some significant control issues exist.

C : Design is inadequate and significant control issues exist.

D : Design is inadequate; however, no significant control issues exist.

Answer: C

Question 5

Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred? I. Company A exhibits a higher standard of ethical behavior than does company B. II. Company A has established objective criteria by which an employee's actions can be evaluated. III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

Section: Volume A

A : II only

B : III only

C : I and II only

D : II and III only

Answer: A

Name:	CIA Exam Part Two: Practice of Internal Auditing
Exam Code:	IIA-CIA-Part2-3P
Certification:	Certified Internal Auditor
Vendor:	IIA
Total Questions:	1029
Last Updated:	Apr 23, 2024

IIA IIA-CIA-Part2-3P