Practice IIA-CIA-Part2 Exam Online

Question 1

While performing a follow-up of a concern about equipment-inventory tracking, which course of action is not necessary for the auditor to take?

Section: Volume C

A : Ensure that the steps being taken resolve the condition disclosed by the initial finding

B : Ensure that controls have been implemented to prevent the issue from occurring again.

C : Ensure that the entity has begun to experience benefits as a result of resolving the issue.

D : Ensure that the inherent risk has been eliminated as a result of resolving the issue.

Answer: D

Question 2

An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

Section: Volume D

A : The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.

B : The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.

C : The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.

D : Senior management is accountable to the board for monitoring the system of internal controls.

Answer: A

Question 3

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?

I. Financial measures.

II. Internal business process measures.

III. Client satisfaction measures.

IV. Innovation and learning measures.

A : I only

B : II and IV only

C : III and IV only

D : II, III, and IV only

Answer: D

Question 4

The chief audit executive (CAE) mentions to management that the internal audit activity plans to include an engagement addressing a significant emerging industry risk on the audit plan. Management informs the CAE that the compliance department is already scheduled to perform assurance work related to the risk. What must the CAE do to determine whether or not to add the proposed engagement to the audit plan?

A : Assess the independence, objectivity, and competence of the compliance department with regard to the work being performed.

B : Inquire of compliance department management about whether they have the authority to perform the work.

C : Review the audit universe for additional engagements that may be available to add to the audit plan instead.

D : Survey management to determine whether it is necessary to duplicate the work of the compliance department.

Answer: A

Question 5

The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?

Section: Volume D

A : Close the issue by noting that follow-up will be completed as part of the next engagement.

B : Discuss the matter with management to determine a resolution.

C : Accept management's decision as the same risk has been accepted in the past.

D : Report the situation to the board for immediate resolution.

Answer: B

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

IIA IIA-CIA-Part2