[Dec-2022] The IIA IIA-CIA-Part2 Exam Test For Brief Preparation [Q122-Q144]

QUESTION 122
Which of the following are key characteristics of enterprise risk management?
1. It considers risk in the formulation of strategy.
2. It applies risk management in some units of an entity.
3. It takes a portfolio view of risks throughout the enterprise.
4. It restricts the organization’s ability to seize opportunities inherent in future events.

QUESTION 123
The chief audit executive (CAE) determined that based on management’s oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?

QUESTION 124
An internal auditor determines that certain information from the engagement results is not appropriate for disclosure to all report recipients because it is privileged. In this situation, which of the following actions would be most appropriate?

QUESTION 125
Which of the following is least likely to vary when conducting audit engagements in different regions of an international organization?

QUESTION 126
An internal auditor is asked to review a recently completed renovation to a retail outlet. Which of the following would provide the most reliable evidence that the completed work conformed to the plan?

QUESTION 127
The final internal audit report should be distributed to which of the following individuals?

QUESTION 128
The internal auditor of a bank has developed a multiple regression model which has been used for a number of years to estimate the amount of interest income from commercial loans. During the current year, the auditor applies the model and discovers that the R2 value has decreased dramatically, but that the model otherwise seems to be working correctly. Which of the following conclusions is justified by the change?

QUESTION 129
According to the Standards, which of the following describes the condition attribute when applied to the observations and recommendations contained in the audit report?

QUESTION 130
A chief audit executive (CAE) suspects that several employees have used desktop computers for personal gain. In conducting an investigation, the primary reason that the CAE would choose to engage a forensic information systems auditor rather than using the organization’s information systems auditor is that a forensic information systems auditor would possess:

QUESTION 131
An organization is experiencing a significant risk that threatens its financial well-being Senior management requested that the chief audit executive (CAE) meet with them to discuss the risk. Which of the following would best describe the CAE’s responsibility at the meeting?

QUESTION 132
Which of the following data sources would provide the least valid data for an audit of a retail store’s customer service?

QUESTION 133
Which of the following are advantages of flowcharts over internal control questionnaires”
1 Flowcharts reduce the need to test whether employees are observing internal control processes
2 Flowcharts provide a visual depiction of the processes in the area under review 3. Flowcharts identify and prioritize internal control design weaknesses.
4 Flowcharts highlight the control points to help internal auditors evaluate control design

QUESTION 134
The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:

QUESTION 135
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

QUESTION 136
Which of the following would be the least desirable criteria against which to judge current operations of an organization’s treasury function?

QUESTION 137
Which of the following statements is true regarding internal controls?

QUESTION 138
When creating the internal audit plan, the chief audit executive should prioritize engagements based primarily on which of the following?

QUESTION 139
A payroll clerk enters payroll transactions into the general ledger. The staff accountant reconciles the payroll ledgers. The payroll manager issues the manual payroll checks. The checks are maintained in a locked cabinet. The chief financial officer secures the keys to the cabinet. The payroll clerk distributes the manual checks.
The payroll manager reconciles the bank statements monthly. Which of the following audit steps best addresses the risk of fraud in the payroll process?

QUESTION 140
An internal auditor has completed an audit of an organization’s activities and is ready to issue a report. However, the client disagrees with the internal auditor’s conclusions. The auditor should:

QUESTION 141
When setting the scope for the identification and assessment of key risks and controls in a process, which of the following would be the least appropriate approach?

QUESTION 142
Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?

QUESTION 143
All of the following tools are employed to control large-scale projects except:

QUESTION 144
Which of the following is a preventive control for fraud?