Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 24

A newly appointed chief audit executive (CAE) of a small organization is developing a resource management plan. Which of the following approaches would be most beneficial to help the CAE obtain details of the internal audit activity's collective knowledge, skills, and other competencies?

A. Review or establish a documented skills assessment of the internal audit staff and gather information from post-audit surveys.

B. Obtain from the human resources department the job descriptions and position requirements for all internal audit staff.

C. Conduct an objective written test of the internal audit staff to assess their knowledge and skills related to core internal audit competencies.

D. Request the internal audit staff to submit a document that summarizes their most recent performance appraisals and post audit reviews.

An internal auditor wants to assess whether the organization's governing body was involved in strategic decisions for the use of social media. What could provide the most relevant evidence?

A. The board's meeting minutes

B. The executive committee’s social media budget report

C. The organization’s marketing plan

D. The organization’s procedures manual for daily social media management

An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?

A. The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider

B. The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer

C. The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the auditD, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry

According to the theory of constraints, which of the following is most influenced by various bottlenecks the organization encounters?

A. Manufacturing.

B. Profitability.

C. Overheads.

D. Quality.

The internal audit manager has been delegated the task of preparing the annual internal audit plan for the forthcoming fiscal year. All engagements should be appropriately categorized and presented to the chief audit executive for review. Which of the following would most likely be classified as a consulting engagement?

A. Evaluating procurement department process effectiveness.

B. Helping in the design of the risk management program.

C. Assessing financial reporting control adequacy.

D. Reviewing environmental, social, and governance reporting compliance.

Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

A. When internal auditors need to cover many control procedures using ICQs is generally less efficient than conducting observations and inspections

B. It is generally difficult for internal auditors lo compile appropriate ICQs for business activities that are governed by standardized operating procedures

C. ICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.

D. It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management

Which of the following situations best applies to an organization that uses a project, rather than a process, to accomplish its business activities?

A. A clothing company designs, makes, and sells a new item.

B. A commercial construction company is hired to build a warehouse.

C. A city department sets up a new firefighter training program.

D. A manufacturing organization acquires component parts from a contracted vendor

Some lime after the final audit report was issued, the engagement supervisor teamed that several internal control deficiencies were not remedied, despite management's previous agreement to remedy them According to IIA guidance, which of the following is the most appropriate response'5

A. The engagement supervisor must notify the chief audit executive (CAE) that the deficiencies have not been rectified

B. The engagement supervisor should rely on professional judgment as to whether the CAE should be informed, or the management action plan should be adjusted

C. The engagement supervisor should rely on his negotiation skills and issue an ultimatum to management to remedy the control deficiencies

D. Ensure that these deficiencies are captured in the documentation as high-priority areas to be reviewed during the next audit.

Which of the following is one of the five attributes that internal auditors include when documenting a deficiency?

A. The criteria used to make the evaluation

B. The methodology used to analyze data

C. The proposed follow-up engagement work to be performed

D. The scope of work performed during the engagement

Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?

A. Advance notice may result in management making corrections to reduce the number of potential deficiencies.

B. Previous management action plans addressing prior internal audit recommendations remain incomplete.

C. The engagement includes audit assurance procedures such as sensitive or restricted asset verifications.

D. The audit engagement has already been communicated and approved through the annual audit plan.