Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 15

Which of the following statements concerning workpapers is the most accurate?

A. The organization and the format of workpapers is the same for all engagements

B. The extent of what is included in workpapers is a matter of professional judgment

C. Workpapers should be complete so that every conceivable question that can be raised should be answered

D. Copies of operational managements records should not be included, but referenced so that they can be located

An internal auditor is assigned to validate calculations on the organization's billing application. As part of the test, the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?

A. Generalized audit software.

B. Utility software.

C. Integrated test facilities.

D. Audit expert systems

For which of the following fraud engagement activities would it be most appropriate to involve a forensic auditor?

A. Independently evaluating conflicts of interests.

B. Assessing contracts for relevant terms and conditions.

C. Performing statistical analysis for data anomalies.

D. Preparing evidentiary documentation.

According to IIA guidance, which of the following is the most appropriate action to be taken by the chief executive (CAE) if management refuses to accept audit recommendations and implement corrective actions, Even after escalation to senior management?

A. The CAE should continue to meet with management to obtain their agreement for corrective action

B. The CAE should note in the final report that management has decided to accept the risk.

C. The CAE should ask that additional testing be undertaken to strengthen his case as to the need for corrective action.

D. The CAE should advise senior management of his intention to escalate the matter to the board.

While conducting a review of the logistics department the internal audit team identified a crucial control weakness. The chief audit executive (CAE) decided to prepare an audit memorandum for management of the logistics department followed by an informal meeting What is the most likely reason the CAE decided to prepare the audit memorandum?

A. To report up-to-date audit progress to management

B. To ensure that the internal audit team and the CAE are aligned with regard to the identified weakness

C. To allow management to address the identified weakness timely

D. To obtain management's agreement with regard to the identified weakness

A bank uses customer departmentalization to categorize its departments. Which of the following groups best exemplifies this method of categorization?

A. Community, institutional, and agricultural banking

B. Mortgages, credit cards, and savings.

C. South, southwest and east.

D. Teller, manager, and IT specialist

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

A. Continue the engagement with the available staff, providing more hands-on supervision than usual

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

C. Cosource 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

D. Supplement 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

During a review of the organization's waste management processes, the internal auditor discovered that wastewater is being disposed of inappropriately. The auditor's recommendations, suggested to mitigate the risk of regulatory sanctions and reputational damages, were accepted and timelines for implementation were agreed. However, during the internal audit activity's periodic follow-up exercise, management indicated that the recommendation was too expensive to implement and the current disposal method has been cost-effective. What should the chief audit executive do in this case?

A. Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.

B. Contact the regulatory agency responsible for monitoring such matters in order to convince management to implement the recommendations.

C. Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

D. Highlight the current exposure to the external auditors so they too can highlight the issue and further pressure management to address the concern.

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?

A. A spaghetti map

B. A heat map.

C. A process map

D. An assurance map

During follow-up. the internal auditor discovered that operational management did not implement effective actions to address a significant control breach If the issue is left unresolved it may result in regulatory sanctions and damage the organization's reputation What is the most appropriate next step for the chief audit executive to lake?

A. Report the matter to the board

B. Implement the recommended control to address the exposure

C. Discuss the matter with senior management

D. Ask the regulatory agency to persuade management to address the issue