Most Recent IIA-CIA-Part2 Exam Questions & Answers

Prepare for the IIA Certified Internal Auditor exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the IIA-CIA-Part2 exam and achieve success.

The questions for IIA-CIA-Part2 were last updated on Nov 20, 2024.

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Question No. 1

The internal auditor and her supervisor are in dispute about a risk that was not tested during an audit of the procurement function. Which of the following tools would best support the auditor's decision not to test the risk?

AA spaghetti map

BA heat map.

CA process map

DAn assurance map

Show Answer

Correct Answer: D

An assurance map is a tool that provides a visual representation of the coverage of risks by various assurance providers. It supports the auditor's decision by showing which risks are being addressed by internal audit and other functions, and which risks are not being tested. This can help justify the auditor's decision not to test a particular risk, by demonstrating that it has already been covered or deemed low priority. Reference:

'Internal Auditing: Assurance & Advisory Services' (The Institute of Internal Auditors)

'Creating an Assurance Map' (IIA Practice Guide)

Question No. 2

Which of the following describes the primary objective of an internal audit engagement supervisor?

AUphold the quality of the internal audit actively

BProvide engagement progress updates to management of the area under review

CAssure risks and controls are identified and assessed

DEnsure timely completion of the engagement
The primary objective of an internal audit engagement supervisor is to uphold the quality of the internal audit actively. This involves ensuring that the audit procedures are performed effectively, the findings are accurate and reliable, and the audit meets the necessary professional standards. The supervisor oversees the audit team's work, provides guidance and support, and ensures that the engagement is conducted according to the internal audit plan and methodology. This role is crucial in maintaining the credibility and integrity of the audit function.
Reference:
IIA Standard 2340: Engagement Supervision
IIA Practice Guide: Internal Auditing and Assurance

Show Answer

Correct Answer: A

Question No. 3

An internal auditor s examination of accounts receivable generates the following results:

What is the projected misstatement for the population if ratio estimation is used?

A$84,000

B$238,095

C$700,000

D$2100.000

Show Answer

Correct Answer: D

To determine the projected misstatement for the population using ratio estimation, the following calculation can be used:

ProjectedMisstatement=(SampleMisstatementSampleBookValue)PopulationBookValueProjectedMisstatement=(SampleBookValueSampleMisstatement)PopulationBookValue

Given:

Sample Misstatement = $420,000

Sample Book Value = $12,000,000

Population Book Value = $20,000,000

ProjectedMisstatement=(420,00012,000,000)20,000,000ProjectedMisstatement=(12,000,000420,000)20,000,000

ProjectedMisstatement=0.03520,000,000=700,000ProjectedMisstatement=0.03520,000,000=700,000

Therefore, the projected misstatement is $700,000.

IIA Standards: 2320 - Analysis and Evaluation

IIA Practice Guide: Statistical Sampling

Question No. 4

Which of the following items, included in the preliminary audit communication would be most useful for management to formulate action plans in response to audit recommendations?

AA condition

BAn audit objectives

CAn audit scope

DAn observation rating

Show Answer

Correct Answer: A

In the preliminary audit communication, the condition is the most useful item for management to formulate action plans in response to audit recommendations. The condition describes the existing state or issue identified during the audit. It provides a clear and specific description of what is wrong or what needs improvement, which is essential for management to understand the problem and take appropriate corrective actions. While audit objectives, scope, and observation ratings are important, the condition directly points to the area that needs attention and improvement.

The Institute of Internal Auditors (IIA) Standard 2410 -- Criteria for Communicating: 'Communications must include the engagement's objectives and scope as well as applicable conclusions, recommendations, and action plans.'

IIA Practice Guide on 'Communicating Audit Results'

Question No. 5

As a result of server managements assumption of risk there is residual risk that exceeds me organisation's risk appetite. Which of the following actions would be most appropriate for the chief audit executive to take?

Aignore the responsibility of addressing the residual risk

BAssume the responsibility of addressing the residual risk

CEnsure senior management acknowledges residual risk

DCommunicate with the board the issue of residual risk

Show Answer

Correct Answer: D

The CAE has a responsibility to communicate significant risks to the board, particularly when the residual risk exceeds the organization's risk appetite. By communicating with the board, the CAE ensures that the highest level of governance is aware of the risk and can make informed decisions about how to address it. Ignoring the risk, assuming responsibility without authority, or only ensuring senior management's acknowledgment without further action would be insufficient and not in line with the CAE's duties.

The Institute of Internal Auditors (IIA) Standards

Internal Audit's Role in Risk Management

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