Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 11

As part of internal audit's assistance with an annual external audit, the internal auditors are required to do a preliminary analytical review of an bank account balances. This involves verifying the current year end balances as web as comparing the current year end balances with previous year end balances to highlight significant changes. Which of the following is the most reliable source for verification of the current year end bank balances?

A. Bank confirmations

B. Internal bonk statements

C. Bank reconciliations as of the end of the year

D. Bank account general ledger balancer as of the end of the year

According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?

1.Consult on CSR program design and implementation

2.Serve as an advisor on CSR governance and risk management.

3.Review third parties for contractual compliance with CSR terms

4Identify and mitigate risks to help meet the CSR program objectives

A. 1,2, and 3.

B. 1.2. and 4.

C. 1, 3, and 4.

D. 2. 3. and 4.

The internal audit function is in the fieldwork stage of the annual staff performance appraisal assurance engagement. A new auditor is hired and added to the engagement team. The auditor reviews the engagement work program with another member of the team and suggests improvements to make the fieldwork easier to complete. What action should be taken next?

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

B. Note the suggested changes to be included in next year’s engagement program.

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

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

Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

A. There is a higher reliance on organizational culture

B. There are clear expectations set for employees.

C. There are electronic monitoring techniques employed

D. There is a defined code for employee behavior

Which of the following structures would best suit a maintenance organization that needs to adapt quickly to rapidly changing technology?

A. Traditional

B. Decentralized

C. Centralized

D. Customer-centric

An internal auditor has suspicions that the management of a department splits me number of planned purchases to avoid the approval process required for larger purchases. Which of the following would be the most efficient technique to help the auditor identify the seventy of this malpractice?

A. Examining the entire population

B. Asking management about the malpractice

C. Testing a sample of random transactions.

D. Using data analytics

Which of the following would be the most effective fraud prevention control?

A. Email alert sent to management for checks issued over S100.000.

B. installation of a video surveillance system in a warehouse prone to inventory loss

C. New hire training to explain fraud and employee misconduct.

D. Daily report that Identifies unsuccessful system log-in attempts

Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?

A. Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization's control processes.

B. Quality assessments focus on the internal audit activity’s structure, relationships with stakeholders, compliance with the Standards, and internal audit staff proficiency.

C. in order to comply with the Standards, the internal audit activity must obtain an objective assessment of its processes and function at least once a year

D. Internal auditors completing internal assessments must demonstrate certification to perform quality assessments

While reviewing warehouse inventory records, an internal auditor noticed that the warehouse has a surprisingly high number of products in storage. Over the past three years, the auditor had visited this particular warehouse numerous times for previous engagements and remembered that the warehouse was rather small. The auditor then decided to compare the square footage of the warehouse to the recorded number of products in storage. The auditor’s action is an example of which of the following?

A. Performing a reasonableness test.

B. Conducting a fraud investigation.

C. Conducting trend analysis.

D. Operating with impaired objectivity.

An organization's healthcare insurance costs have been rising approximately 10 percent per year for several years. Which of the following analytical review procedures would best evaluate the reasonableness of the increase in healthcare costs?

A. Develop a comparison of the costs incurred with similar costs incurred by other organizations.

B. Obtain the government index of healthcare costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

C. Obtain a bid from another healthcare administrator to provide the same administrative services as the current healthcare administrator.

D. Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred.