Free IIA IIA-CIA-Part2 Practice Questions 2026 - Page 27

Which of the following approaches would best help an internal auditor determine whether a retailer database of 100,000 customers has nay duplicate accounts?

A. Stratifying the customer information

B. Extracting the customer information

C. Filtering the customer information

D. Sorting the customer information

Which of the following statements about internal audit's follow-up process is true?

A. The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

B. The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.

C. Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

D. The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

Which of the following statements is true regarding the management-by-objectives method?

A. Management by objectives is most helpful in organizations that have rapid changes

B. Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.

C. Management by objectives helps organizations to keep employees motivated.

D. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

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 audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies inclusion of this clause in the reports?

A. Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct.

B. The audit committee has reviewed the annual self-assessment results and approved the use of the clause.

C. The self-assessment results were validated by a qualified external review team three years prior.

D. The internal audit charter, approved by the audit committee, requires conformance with the Standards

A corporate merger decision prompts the cruel audit executive (CAE) to propose interim changes lo the existing annual audit plan to account for emerging risks. When of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan?

A. Present the revised audit plan directly to the board for approval

B. Communicate with the chief financial officer and present the revised audit plan to the CEO for approval

C. Present the revised audit plan directly to the CEO for approval

D. Communicate with the CCO and present the revised audit plan to the board for approval

A code of business conduct should include which of the following to increase its deterrent effect?

1. Appropriate descriptions of penalties for misconduct.

2. A notification that code of conduct violations may lead to criminal prosecution.

3. A description of violations that injure the interests of the employer.

4. A list of employees covered by the code of conduct.

A. 1 and 2

B. 1 and 3

C. 2 and 4

D. 3 and 4

Which of the following would be the most helpful to a chief audit executive when developing a talent management strategy?

A. Gap analysis

B. Staff preferences

C. Maturity analysis

D. Extent of external audit coverage

When presenting an observation m writing which or the Mowing is usually true regarding the level of detail provided?

1. The description of the observation in the final audit report contains more detail then the description m the engagement workpapers

2. The description of the observation m the engagement workpapers contains more detail than the descriptor n a preliminary observation document

3. A preliminary observation document contains more detail than tie observation description in the final audit report

4. A preliminary observation document contains more detail than tie observation description in the engagement workpapers

A. 1 and 2

B. 1 and 4

C. 2 and3

D. 3 and 4

Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?

A. The amount of experience the auditors have conducting audits in the specific area of the organization.

B. The availability of the auditors in relation to the availability of key client staff.

C. Whether the budgeted hours are sufficient to complete the audit within the current scope.

D. Whether outside resources will be needed, and their availability.