Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 22

An organization's health-care 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 health-care costs?

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

B. Obtain the government index of health-care 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 health-care administrator to provide the same administrative services as the current health-care administrator.

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

An internal audit engagement supervisor approved the engagement work program submitted by an internal auditor and concluded that it satisfied engagement objectives. At the end of the engagement, the engagement supervisor reviewed the completed work program and found numerous deficiencies and inconsistencies in the engagement workpapers. Which of the following should be improved in the process of engagement supervision?

A. The supervisor should regularly review the engagement team's workpapers throughout the engagement, including raising questions and providing guidance.

B. The supervisor should evaluate whether the engagement work program includes audit procedures relevant to engagement objectives.

C. The supervisor should thoroughly document all concerns prior to signing off the completed workpapers and finalizing the work program.

D. The supervisor should issue a satisfaction questionnaire to management of the activity that was under review to understand the root causes of deficient performances.

An internal auditor is conducting an assurance engagement. One engagement objective is to evaluate the project manager’s effectiveness at controlling project costs. Which of the following audit tests should be included in the engagement program?

A. Prepare a bank reconciliation statement for all the bank accounts of the organization

B. Track a sample of project payments from accounts payable to concluded agreements and authorization rights

C. Validate the accuracy of assumptions and inputs used for calculations in the project’s feasibility model

D. Investigate whether the budget of the project was approved timely as required by internal policies

An internal auditor is reviewing the accuracy of commission payments by recalculating 100% of the commissions and comparing them to the amount paid. According to IIA guidance, which of the following actions is most appropriate for identified variances?

A. Document the results and report the overall percentage of variances.

B. Determine the significance of the variances and investigate causes as needed.

C. Review the results and investigate the cause of all variances.

D. Report all variances to management and request an action plan to remediate them.

Which of the following is true about surveys?

A. A survey with open-ended questions is weaker than a structured interview

B. A survey with closed-ended questions can produce quantifiable evidence

C. A survey's participants are likely to volunteer information that was not specifically requested

D. A survey, like inspections and confirmations are best used to test the operating effectiveness of controls

An internal auditor collected several employee testimonials Which of the following is the best action for the internal auditor to take before drawing a conclusion?

A. Ensure the testimonials are well documented

B. Substantiate the testimonials with physical or documentary evidence

C. Corroborate testimonials with the results from other soft control techniques

D. Review the testimonials with the interviewed employees

Which of the following statements regarding the risk management process' support of the internal audit activity is true?

A. The risk management process can provide more extensive internal audit services to the organization if it does not have an internal audit department

B. The risk management process supports internal audit by evaluating whether critical controls are adequate and effective.

C. The risk management process can determine whether all significant risks have been identified and are being treated.

D. The risk management process establishes an organization-specific documented risk management framework.

According to IIA guidance, which of the following reflects a valid principle for the internal audit activity to rely on the work of internal or external assurance providers?

A. Elements of evaluation

B. Elements of organization

C. Elements of practice

D. Elements of confidentiality

Which of the following is true regarding the monitoring of internal audit activities?

A. The form and content of monitoring policies could vary by industry

B. The board of directors is responsible for the establishment of monitoring polities

C. Both large and small audit departments must have written policies on monitoring.

D. The chief audit executive must develop all monitoring policies related to the activity

According to IIA guidance, which of the following is most likely to become part of the engagement work program?

A. Information obtained from historic audits and memos.

B. Risk and control registers or matrices.

C. Resource deployment plans and sampling methodologies.

D. Prior findings and management responses.