[Full-Version] 2022 Updated IIA Study Guide IIA-CIA-Part2 Dumps Questions [Q201-Q224]

[Full-Version] 2022 Updated IIA Study Guide IIA-CIA-Part2 Dumps Questions

Newest IIA-CIA-Part2 Exam Dumps Achieve Success in Actual IIA-CIA-Part2 Exam

What are the requirements to take an IIA CIA Part 2 Exam?

To take the IIA CIA Part 2 Exam, you must:

Be able to complete the certification application and attest to your eligibility requirements.
Have a bachelor's degree or greater from an accredited institution OR have three years (36 months) of professional business experience in internal auditing. You can also qualify for one of the IIA certifications if you're a member of a partner association.
Pass the required certification exam(s).
Apply for and obtain endorsement from your local IIA Institute chapter.

NEW QUESTION 201
An internal auditor is asked to review a recently completed renovation to a retail outlet. Which of the following would provide the most reliable evidence that the completed work conformed to the plan?

A. An interview with the employee who performed the work
B. A physical inspection of the retail outlet.
C. Existence of a signed completion document accepting the work
D. An analysis of purchasing and receiving documentation

Answer: C

NEW QUESTION 202
An audit of an organization's fulfillment department discovered that problems in the order processing system led to a significant number of orders being fulfilled multiple times. During the exit conference, the head of the department informed the auditors that the processing system would be enhanced within six months to correct the problems. Which course of action should the chief audit executive follow?

A. Meet with the audit committee to determine the appropriate follow-up action.
B. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
C. Adjust the scope of the next scheduled audit to determine that the problems have been resolved.
D. Assess the status of corrective action in a follow-up engagement in six months.

Answer: B

NEW QUESTION 203
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.

A. II and III only
B. II, III, and IV only
C. I and II only
D. I only

Answer: C

Explanation:
Section: Volume B
Explanation/Reference:

NEW QUESTION 204
The chief audit executive (CAE) is adding a new audit position to the team. According to the International Professional Practices Framework, which of the following candidates would the CAE be least likely to accept for the position?

A. The candidate provides examples of previous reports demonstrating excellent writing skills, but lacks ability to clearly communicate ideas and conclusions in a meeting.
B. The candidate is applying for an IT audit position, while originally coming from an IT background, but has only experiences of financial and compliance audits in the previous position.
C. The candidate meets the minimum educational requirements established by the chief audit executive, but has less formal education than any of the other candidates being considered.
D. The candidate is knowledgeable about potential indicators of fraud including typical risks, but has only participated as a staff auditor in one investigative fraud audit.

Answer: A

Explanation:
Section: Volume D

NEW QUESTION 205
An internal auditor has completed an audit of an organization's activities and is ready to issue a report.
However, the client disagrees with the internal auditor's conclusions. The auditor should:

A. Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.
B. Withhold the issuance of the audit report until agreement on the issues is obtained.
C. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
D. Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.

Answer: C

NEW QUESTION 206
During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:

A. Identify areas of the treasury function that should be considered for potential engagement objectives.
B. Comply with the internal audit charter and applicable regulatory requirements.
C. Report any high-risk exposures of the treasury function to management and the board.
D. Determine whether appropriate resources are present to carry out the treasury function.

Answer: A

NEW QUESTION 207
Which of the following is typically not a reason for committing financial statement fraud?

A. To dispel negative market perception.
B. To obtain more favorable terms on financing.
C. To disguise a duplicate payment to a vendor.
D. To receive performance-related bonuses.

Answer: C

Explanation:
Section: Volume B

NEW QUESTION 208
Which of the following would provide the best audit evidence regarding the effectiveness of an applied research department?

A. Compare the number of this year's new product developments to the number of new product developments for the past five years.
B. Develop a report on revenue generated by or cost savings directly attributable to newly developed products.
C. Develop a cost-per-product analysis for products developed over the past five years.
D. Compare research as a percentage of revenue between this company and all major competitors in the same industry.

Answer: B

Explanation:
Section: Volume A

NEW QUESTION 209
An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile. Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?

A. Purchase crude oil-related derivatives such as futures or options
B. Trade crude oil derivatives at financial markets in order to benefit from price fluctuations
C. Enter into long-term gasoline purchase agreements with end customers.
D. Stock as much raw materials as possible and consider Investing into additional facilities

Answer: C

NEW QUESTION 210
A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?

A. All completed training costs, and 50% of the contracted production costs.
B. Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
C. Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.
D. All completed training costs, and the cost of actual production hours completed to date.

Answer: A

NEW QUESTION 211
Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

A. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.
B. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
C. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
D. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.

Answer: A

NEW QUESTION 212
According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?

A. Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.
B. The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.
C. The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.
D. The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.

Answer: C

NEW QUESTION 213
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:

A. The internal audit activity's charter.
B. The engagement client.
C. The audit engagement team.
D. Internal auditing standards.

Answer: B

NEW QUESTION 214
Some lime after the final audit report was issued, the engagement supervisor teamed that several internal control deficiencies were not remedied, despite management's previous agreement to remedy them According to IIA guidance, which of the following is the most appropriate response'5

A. Ensure that these deficiencies are captured in the documentation as high-priority areas to be reviewed during the next audit.
B. The engagement supervisor should rely on his negotiation skills and issue an ultimatum to management to remedy the control deficiencies
C. The engagement supervisor must notify the chief audit executive (CAE) that the deficiencies have not been rectified
D. The engagement supervisor should rely on professional judgment as to whether the CAE should be informed, or the management action plan should be adjusted

Answer: C

NEW QUESTION 215
When determining if appropriate resources exist to achieve engagement objectives, which of the following factors should a chief audit executive consider?
1. Nature and complexity of the audit engagement.
2. Time constraints.
3. Effectiveness of the audit committee.
4. Availability of resources for the engagement.

A. 1, 2, and 4 only
B. 1, 3, and 4 only
C. 1 and 2 only
D. 1, 2, and 3 only

Answer: A

NEW QUESTION 216
An internal auditor is reviewing purchases made through the organization's corporate credit card program.
Which of the following statements best describes a root cause of a deficiency?

A. Sample testing found 10% non-compliance with the organization's business travel policy.
B. A control to detect split purchases has not been activated in the credit card system.
C. Company policy limits card use to $500 per transaction.
D. A personal computer was purchased from a non-approved vendor.

Answer: B

NEW QUESTION 217
Which of the following conditions is the strongest indicator of possible fraud?

A. An assistant treasurer who refuses to take vacations.
B. Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.
C. A condition of excess manufacturing waste material.
D. A manager who is often over budget at the end of a reporting period.

Answer: A

Explanation:
Section: Volume A

NEW QUESTION 218
Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

A. One employee handles both cash deposits and accounts payable.
B. Checks are not restrictively endorsed when received.
C. Only one signature is required on the organization's checks.
D. One employee handles both accounts receivable and purchase orders.

Answer: B

NEW QUESTION 219
In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

A. It is only useful for audits of distant locations.
B. It creates apprehension about the audit engagement.
C. It is an uneconomical approach to obtaining information.
D. It involves the engagement client's supervisory personnel in the audit.

Answer: D

Explanation:
Section: Volume C

NEW QUESTION 220
A manager of one of a retailer's several retail outlets is stealing cash from cash sales, recording the sales as accounts receivable, and subsequently writing off the fictitious accounts receivable as bad debts. Which of the following comparisons would be most effective in signaling the possibility of such a fraud?

A. Bad debt expense as a percentage of sales, compared to that of the other outlets.
B. Bad debt expense as a percentage of sales, compared to that of previous years.
C. Percentage of past-due accounts receivable, compared to that of the other outlets.
D. Percentage of past-due accounts receivable, compared to that of previous years.

Answer: A

NEW QUESTION 221
Risk assessments can vary in format, but generally include:
1.A description of identified risks.
2.Tests of audit controls.
3.A system of rating risks.
4.Sample size identification.

A. 1, 3, and 4 only
B. 1 and 2 only
C. 1 and 3 only
D. 2, 3, and 4 only

Answer: C

NEW QUESTION 222
Which of the following is the most common method management can use to manage risk within its risk appetite?

A. Implementation of controls.
B. Use of risk registers and dashboard.
C. Continuous evaluations and audits.
D. Frequent communication of risk appetite for operating personnel.

Answer: A

NEW QUESTION 223
An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

A)

B)

C)

D)