Practice IIA-CIA-Part2 Exam Online

Question 1

A report prepared by the internal audit activity contains several observations that disclose proprietary

information regarding the organization's manufacturing process. According to the International Professional

Practices Framework, which of the following is the appropriate treatment for this report?

Section: Volume D

A :

Distribute the report only to the board to protect disclosure.

B :

Disclose and distribute this information in a separate report.

C :

Remove the observations and report verbally to senior management.

D : Require a separate non-disclosure statement from each recipient.

Answer: B

Question 2

During an audit of a contract for computer security, a governmental auditor finds that a contractor has developed a system that could be the most advanced in the industry. If it seems that the contractor is charging the government for developmental cost of a system that might be sold to other organizations, what is the auditor's best course of action?

A : Estimate the cost to develop the advanced security system and inform the contractor that it will be a disallowed cost.

B : Exclude the observation from the engagement final communication because the contract was vague and the level of security is clearly acceptable.

C : Estimate the added cost, report it to management, and suggest that management meet with its lawyers and the contractor to resolve differences.

D : Compare the cost of the security program with previous costs incurred by governmental operations and inform the contractor that the difference will be a

Answer: C

Question 3

Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?

A : presence of an independent critical mass

B : established philosophy and operating style of senior management

C : articulated internal control objectives of the organization

D : organization's employee recruiting and retention policies

Answer: C

Question 4

Which of the following would have the least significance in an audit of the efficiency of a driver's license testing facility?

Section: Volume C

A : erical staff administer written tests to allow examiners more time to supervise driving tests

B : aff are cross-trained to provide backup for other areas of the facility as required

C : point-of-sale cashiering system reduces the need to reenter payment data.

D : aminers are required to be recertified on an annual basis.

Answer: D

Question 5

Management has asked the internal audit activity to perform an operational audit of a division that recently reported an increase in expenditures in addition to a decrease in profits. However, existing internal audit resources are currently engaged in a legal compliance audit. Which factor would be considered least important in deciding whether resources should be removed from the legal compliance audit to the operational audit?

Section: Volume C

A : increase in expenditures at the division over the past year

B : probability that the legal compliance audit will detect fraud

C : results of the external auditor's most recent financial audit

D : potential for regulatory fines associated with the legal compliance audit.

Answer: C

Name:	Practice of Internal Auditing
Exam Code:	IIA-CIA-Part2
Certification:	Certified Internal Auditor
Vendor:	IIA
Total Questions:	485
Last Updated:	Nov 06, 2025

IIA IIA-CIA-Part2 Answers