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IIA-CIA-Part2 exam is a comprehensive exam that covers a broad range of topics. IIA-CIA-Part2 exam includes 100 multiple-choice questions that are designed to test the candidate's understanding of the key concepts in internal auditing. IIA-CIA-Part2 exam is divided into four sections: governance and risk management, conducting internal audit engagements, business acumen, and information security. IIA-CIA-Part2 exam is designed to be challenging, and candidates are required to demonstrate their knowledge of the subject matter to pass.
IIA-CIA-Part2 exam consists of 100 multiple-choice questions and is administered in English. IIA-CIA-Part2 Exam is computer-based and can be taken at any of the IIA's testing centers around the world. To be eligible to take the exam, candidates must have a minimum of two years of internal auditing experience or a bachelor's degree in a related field.
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IIA Practice of Internal Auditing Sample Questions (Q286-Q291):
NEW QUESTION # 286
Which of the following statements is true regarding the final assurance engagement report issued to management?
- A. Audit findings may be communicated to management prior to issuance of the final approved audit report.
- B. Ratings are only used to assess the condition of an observation made by an internal auditor.
- C. Communications must be relevant logical, and free from errors before they are disseminated.
- D. The audit report must present the information in the following order (1) audit scope, (2) engagement objectives, and (3) engagement results
Answer: C
Explanation:
According to the International Standards for the Professional Practice of Internal Auditing, particularly Standard 2420 - Quality of Communications, internal audit communications should be accurate, objective, clear, concise, constructive, complete, and timely. Ensuring that communications are relevant, logical, and free from errors is essential for maintaining the credibility and effectiveness of the internal audit function and for providing management with reliable information for decision-making.
:
Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2420 - Quality of Communications.
NEW QUESTION # 287
Which of the following risk assessment approaches involves gathering data from work team representing different levels of an organisation?
- A. Facilitated team workshops
- B. Weighted risk factors
- C. Surveys
- D. Management produced analysis 0
Answer: A
Explanation:
Facilitated team workshops are a risk assessment approach that involves gathering data from work teams representing different levels of an organization. This method encourages collaboration and open discussion among team members, allowing for a comprehensive identification and evaluation of risks from various perspectives within the organization. It helps in capturing a wide range of insights and facilitates consensus on risk priorities, making it a valuable tool for effective risk assessment.
Reference:
The Institute of Internal Auditors (IIA) Practice Guide on "Risk Assessment in Audit Planning" COSO Enterprise Risk Management Framework
NEW QUESTION # 288
Which of the following statements is false regarding audit criteria?
- A. Audit criteria should represent reasonable standards against which to assess existing conditions.
- B. Audit criteria should provide flexibility but allow identification of nonadherence.
- C. Audit criteria should equate to good or acceptable management practices.
- D. Audit criteria should be consistent across audit assignments.
Answer: D
Explanation:
Audit criteria should be appropriate and specific to each audit assignment, considering the unique context and objectives of each engagement. Consistency across all audit assignments (Option A) is not always feasible or desirable, as it could lead to inappropriate assessments. Instead, criteria should be flexible to allow the identification of nonadherence, represent reasonable standards, and align with good management practices relevant to each specific audit.
:
IIA Standard 2201: Planning Considerations.
IIA Practice Guide on Audit Planning.
NEW QUESTION # 289
Which of the following is a disadvantage of using flowcharts during a risk assessment?
- A. People cannot quickly understand the processes via flowcharts
- B. Some serious risks that are not part of the linear process can be missed
- C. Flowcharts do not enable auditors to identify missing controls
- D. Flowcharts are not applicable for evaluating the design of controls
Answer: B
Explanation:
One disadvantage of using flowcharts during a risk assessment is that they may not capture serious risks that are not part of the linear process flow. Flowcharts are excellent tools for visualizing processes and identifying control points within a structured workflow. However, they might overlook risks that arise from non-linear interactions, external factors, or complex interdependencies that are not easily represented in a flowchart format. This limitation can result in an incomplete risk assessment if the auditor relies solely on flowcharts without considering other methods to identify all potential risks.References:
* Institute of Internal Auditors (IIA), Practice Guide - Auditing the Control Environment.
NEW QUESTION # 290
According to IIA guidance, how should an internal auditor apply any relevant information obtained from an internal consulting engagement during a related internal audit engagement?
- A. Document any facts obtained and include them as part of the audit engagement workpapers.
- B. Rely upon the information to draw conclusions about the effectiveness of controls.
- C. Objectivity requires that this information should not be used in any part of the audit engagement.
- D. Use the knowledge obtained to evaluate the effectiveness of internal control processes.
Answer: D
Explanation:
According to IIA guidance, internal auditors should use relevant information obtained during a consulting engagement to inform and enhance their evaluation of internal controls during related audit engagements. This is because the knowledge gained from consulting activities can provide valuable insights into the functioning of controls and processes, which can be applied when assessing their effectiveness in a subsequent audit.
IIA Reference:
IIA Standard 1220: Due Professional Care indicates that internal auditors should consider all relevant information available to them when making judgments and recommendations. This includes information obtained from consulting engagements.
The IIA's Practice Guide on Consulting Engagements advises that while internal auditors must maintain objectivity, they can and should use knowledge gained from consulting engagements to enhance the value and accuracy of their assurance work.
NEW QUESTION # 291
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