Free IIA IIA-CIA-Part2 Exam Dumps and IIA-CIA-Part2 Exam Questions

Question No: 11

MultipleChoice

An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security audit engagement?

Options

AInvestigation of the physical security over access to the components of the LAN.

BThe ability of the LAN application to identify data items at the field or record level and implement user access security at that level.

CInterviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.

DThe level of security of other LANs in the company which also utilize sensitive data.

Question No: 12

MultipleChoice

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

Options

AChecks are not restrictively endorsed when received.

BOnly one signature is required on the organization's checks.

COne employee handles both accounts receivable and purchase orders.

DOne employee handles both cash deposits and accounts payable.

Question No: 13

MultipleChoice

The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

Options

ADetermining if controls over record keeping and reporting are adequate and effective.

BReviewing data provided by information systems to test compliance with external requirements.

CDetermining if information systems provide management with timely information.

DDetermining if information systems provide complete information.

Question No: 14

MultipleChoice

Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

Options

AObserve the process.

BReview the trend in receivables write-offs.

CAsk the credit manager about the effectiveness of the function.

DCheck for evidence of credit approval on a sample of customer orders.

Question No: 15

MultipleChoice

During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens. Based on this, the auditor:

Options

AHas enough evidence to conclude that improperly functioning ovens are the cause.

BNeeds to conduct further inquiries and reviews to determine the impact of the oven variations on the pizza temperature.

CHas enough evidence to recommend the replacement of some of the ovens.

DMust search for another cause since approximately 60 percent of the ovens did not require adjustment.

Question No: 16

MultipleChoice

When assessing the risk associated with an activity, an internal auditor should:

Options

ADetermine how the risk should best be managed.

BProvide assurance on the management of the risk.

CModify the risk management process based on risk exposures.

DDesign controls to mitigate the identified risks.

Question No: 17

MultipleChoice

Which of the following would be a red flag that indicates the possibility of inventory fraud?

1. The controller has assumed responsibility for approving all payments to certain vendors.

2. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.

3. Sales commissions are not consistent with the organization's increased levels of sales.

4. Payments to certain vendors are supported by copies of receiving memos, rather than originals.

Options

AI and II only

BII and III only

CI, II, and IV only

DI, III, and IV only

Question No: 18

MultipleChoice

An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?

Options

ASwitch the existing assurance engagement into a fraud investigation engagement

BExtend the audit scope and perform additional testing of controls on other related areas

CReview the poor year's transaction volume and amounts paid compared to the poor year's budget

DPerform data analytics on the supplier's information, invoiced amounts, and payments performed

Question No: 19

MultipleChoice

The internal auditors available to perform the engagement do not have sufficient skills related to the area under review Which of the following rs an appropriate action for the chief audit executive to take?

Options

AContinue the engagement with the available staff, providing more hands-on supervision than usual

BLimit the objectives and scope of the engagement to align them with the skills available among the current staff.

CCosource the performance of the engagement using personnel in the area that will be reviewed to supplement the knowledge of the staff and complete the engagement

DSupplement the internal auditors assigned to the engagement by bringing onto the engagement team a consultant who is independent of the area under review and has the missing expertise

Question No: 20

MultipleChoice

As part of the preliminary survey, an internal auditor sent an internal control questionnaire to the accounts payable function Based on the questionnaire responses, the auditor determines that there is no established procedure for adding and approving new vendors What would the auditor do next?

Options

ADetermine that this situation is acceptable and focus on more significant issues

BDocument the issue m the draft audit report

CDocument the observation for further follow up when testing the operating effectiveness of controls

DInterview the personnel associated with this observation.

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