IIA Internal Audit Engagement - IIA-CIA-Part2 Exam Practice Test

A. A list of activities to be executed by management to manage risk.

B. A list of the results of last year ' s disaster recovery exercise assessment.

C. A list of recommendations from the internal auditor to manage risk.

D. A list of the outcomes of validation tests indicating that the organization can restore backup media properly.

A. Focus primarily on regulatory compliance risks associated with new IT systems and applications.

B. Conduct interviews with key stakeholders and review recent risk assessments.

C. Perform a physical inspection of vacation trip sites.

D. Review the organization ' s financial statements for revenue declines in vacation trip sales.

A. A reactive approach is best suited for fraud detection due to the effectiveness of tips and whistleblowing programs.

B. Random sampling is an effective method of detecting fraudulent transactions.

C. Fraud detection techniques should be performed against full data populations.

D. The data from various sources should remain segregated for easier analysis and discovery of anomalies.

A. A system utility program

B. An expert or decision support system

C. Generalized audit software

D. An integrated test facility

A. No action is required as the work program has been approved and is underway.

B. Refer the suggested changes to the engagement supervisor for approval.

C. Update the engagement work program with the suggested changes.

D. Note the suggested changes to be included in next year's engagement program.

A. Ensure that internal audit conclusions am based on sufficient and reliable evidence

B. Ensure that performance assessments are completed for audit team members

C. Ensure that internal audit recommendations are practical, cost-effective, and value-added

D. Ensure that risks to the timely completion of the engagement are assessed

A. The assigned internal auditor must maintain objectivity while performing the engagement

B. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

C. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

D. The assigned internal auditor must not assume management responsibilities while performing the engagement.

A. Prepare a formal observation worksheet for the high risk observations and a separate worksheet for the medium risk observations in an email to management.

B. Prepare a formal observation worksheet for all observations identified and send to management to review and provide feedback at the end of fieldwork.

C. Verbally communicate all observations to management at the end of fieldwork and provide a formal worksheet for review and feedback.

D. Verbally communicate the high risk observations to management when identified and prepare a documented worksheet that includes the root cause, effect, and recommendations.

A. Evaluate the recovery plan and report weaknesses to management.

B. Inform management and request that the plan be tested immediately.

C. Recommend that management and users update and test the recovery plan.

D. Update the recovery plan for management, as part of the review.

A. Discuss the internal audit risk assessment including applicable risks and objectives with internal audit management

B. Meet with operational management to team about any areas of concern and to agree on the engagement objectives

C. Identify when controls will be tested and the sampling method to be used based on control risk

D. Perform a walk-through of the process under review to determine whether control wore operating, effectively

A. Review the contract for evidence of authorization

B. Assess the inherent risk of paying duplicate invoices

C. Select a sample of invoices for substantive testing

D. Document underlying reasons for noncompliance

A. Changes to payroll are validated by the personnel department before being processed.

B. Employee access to the payroll database is deactivated immediately upon termination.

C. The employee's name listed on organization's payroll is compared to the personnel records.

D. Payroll time sheets are reviewed and approved by the timekeeper before processing.

A. Determine whether there are any compensating controls in place to reduce the nsk to an acceptable level, and discuss this matter with management of the business area to determine which corrective action is needed

B. Conclude that the process control environment is weak, issue a finding on this conclusion and report this finding to management of the business area

C. Test the control anyway to determine the likelihood that the control was not performed property, and discuss this matter with management of the business area to determine which corrective action is needed

D. Confer with a second internal auditor to determine whether the control failure is legitimate issue a finding on this conclusion and report this finding to management of the business area

A. Controls that ensure that applications are verified for approval prior to initiating design and construction

B. Controls that ensure construction orders are initiated after the second invoice is paid

C. Controls that ensure that grid connection design is finalized before construction is approved to begin

D. Controls that ensure all three invoices are calculated correctly according to the total project cost

A. The engagement detected irregularities and noncompliance instances.

B. The engagement objectives were designed to assist the engagement client

C. The engagement supervisor had no significant comments in the supervisory review.

D. The audit procedures were systematically planned: executed, and documented.