Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 21

The internal audit activity is currently working on several engagements, including a consulting engagement on the management process in the human resources department. Which of the following actions should the chief audit executive take to most efficiently and effectively ensure the quality of the engagement?

A. Assign an experienced manager to monitor the whole engagement process.

B. Employ fieldwork peer review to enhance the work quality.

C. Require internal auditors to follow a standardized work program.

D. Personally supervise the engagement

A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

A. Coordinate and facilitate risk workshops for management to attend

B. Establish the degree of risk appetite for management to accept.

C. Set risk Indicators and mitigation plans for management to Implement.

D. Determine the number of significant risks for management to report to the board

Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

A. Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.

B. Ensure new procedures have been documented, approved, and distributed to the employees responsible.

C. Perform retesting to confirm that new procedures address the previously identified deficient control activities.

D. Analyze the new procedures, then report to senior management whether the associated risks have been managed.

Which of the following is not a direct benefit of control self-assessment (CSA)?

A. CSA allows management to have input into the audit plan.

B. CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

C. CSA can improve the control environment.

D. CSA increases control consciousness.

An internal audit manager assigns an audit team to test purchase transactions by selecting a sample from transactions processed by each of the three procurement officers.

Which of the following techniques will help the audit team achieve this sampling objective?

A. Systematic sampling.

B. Stratified sampling.

C. Stop-or-go sampling

D. Discovery sampling.

Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?

A. Assume responsibility for quantifying and minimizing the residual risks to the organization.

B. Assess the level of financial risks that may affect the organization's stability.

C. Inform the regulatory agency about senior management's action and seek guidance.

D. Proceed with a consulting engagement to benchmark similar organizations' business practices in the region.

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

A. Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

B. Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

C. Briefing the organization's department managers on how to implement risk management processes into their daily operations.

D. Communicating with senior management to better understand how new purchasing controls will minimize payment processing time

Which statement best describes the benefit of using workpapers from recent internal audit engagements of the area under review to plan new engagements?

A. Recent workpapers can help during the planning of a new engagement to understand any corrective actions taken by management to address previous engagement observations.

B. Tests described in recent workpapers can be copied into the new workpapers to save time from reperforming a risk assessment.

C. Recent workpapers serve as the best source for identification of the risks to be examined in the new engagement.

D. The new engagement scope can be derived from recent workpapers to ensure the reperformance of engagement procedures.

An internal auditor of a construction organization found that completed inspection results, required by the organization's policy, were missing from the computer system. Which of the following, if included in the audit report, would demonstrate that the auditor performed a root cause analysis of this observation?

A. Some inspection results were missing from the computer system.

B. The results of lengthy inspections were more likely to be omitted from the computer system.

C. Flaws in the computer system prevented employees from saving their inspection results.

D. Employees did not ensure that inspection results were completed in the computer system.

An auditor reviews tender results for the procurement of construction equipment. Based on her significant experience the auditor believes that the obtained bid prices are too high. Which of the following is required to develop a relevant conclusion?

A. Description of the procurement policy

B. Summary of the tendering process

C. Substantiated and comparative evidence

D. Impact analysis of unfavorable prices