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  • Exam Name: Practice of Internal Auditing
  • Last Update: 24-Apr-2024
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IIA-CIA-Part2 Questions and Answers

Question # 1

An internal auditor for a regional bank suspects that the head of commercial lending has been granting loans without the required collateral Which of the following sampling techniques will be most effective for investigating the auditor's suspicion?

A.

Variables sampling

B.

Dollar-unit sampling

C.

Judgmental sampling

D.

Discovery sampling

Question # 2

An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO. Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization's health and safety program?

A.

The CAE has no role to play, because the chief health and safety officer reports to a senior executive.

B.

The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.

C.

The CAE should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.

D.

The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety program and the reliability of its reports.

Question # 3

According to an internal audit observation, the organization’s rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts into the system. Which of the following component should be added to this observation?

A.

Criteria

B.

Cause

C.

Effect

D.

Condition

Question # 4

An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?

A.

Verifying the existence of inventory items in each warehouse

B.

Assigning the tolerable deviation rate to determine the sample size

C.

Valuating the obsolete Inventory from all the warehouse locations

D.

Confirming that the purchased items are recorded In the correct period

Question # 5

Which of the following should be included in a privacy audit engagement?

1. Assess the appropriateness of the information gathered.

2. Review the methods used to collect information.

3. Consider whether the information collected is in compliance with applicable laws.

4. Determine how the information is stored.

A.

1 and 3 only

B.

2 and 4 only

C.

1, 3, and 4 only

D.

1, 2, 3, and 4

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