[Nov 02, 2025] IIA-CIA-Part2 certification guide Q&A from Training Expert ActualVCE
IIA-CIA-Part2 Certification Overview Latest IIA-CIA-Part2 PDF Dumps
IIA-CIA-Part2 exam covers a wide range of topics including internal audit operations, risk management, governance, and business processes. IIA-CIA-Part2 exam is designed to test the knowledge and skills of individuals in these areas and ensure that they are equipped with the necessary tools to perform effectively as internal auditors.
NEW QUESTION # 55
Which of the following describes (he primary reason why a preliminary risk assessment is conducted during engagement planning?
- A. To identify the greatest risks organizationwide
- B. To ensure that significant risks are included in the engagement scope
- C. To ensure that the engagement work program covers all risk areas
- D. To ensure that risks identified during previous audits of the area have been adequately addressed
Answer: B
Explanation:
The primary reason for conducting a preliminary risk assessment during engagement planning is to ensure that significant risks are included in the engagement scope. This assessment helps the internal auditor focus on areas of highest risk, ensuring that the audit provides the most value by addressing the most critical issues that could impact the organization's objectives.
References:
* IIA Standards: 2201 - Planning Considerations
* IIA Practice Guide: Engagement Planning
NEW QUESTION # 56
A recent survey indicated that residents of a small town take the train to a nearby city eight times per month, on average. The same survey showed that the number of train trips that a resident takes per month (y) is determined by the number of days per month that the resident works in the nearby city (x), according to the equation: y = 2 + 2x. A person who never works in the nearby city is expected to take the train:
- A. Zero times per month.
- B. Eight times per month.
- C. Two times per month.
- D. Four times per month.
Answer: C
NEW QUESTION # 57
Which of the blowing is an example of a compliance assurance engagement?
- A. Providing an assessment of customer satisfaction with customer service provided by the organization
- B. Proving in-house training to senior management regarding applicable laws and regulations
- C. Providing testing on the operating effectiveness of controls ever the reliability of financial reporting
- D. Proving an assessment of the design adequacy of controls related to consumer privacy and confidentially.
Answer: D
NEW QUESTION # 58
An engagement supervisor reviewed a staff internal auditor's documentation and noted that several edits should be made. The internal audit activity uses an electronic workpaper database and does not maintain paper files for its system of record. A system error prevents the engagement supervisor from adding her electronic signature to any workpaper in the database Given this situation which is the most appropriate response to provide evidence of supervisory review?
- A. The engagement supervisor should print sign and date each workpaper after the review is complete and scan the document into the database as evidence of review
- B. Because the engagement supervisor called the help desk to correct the IT problem, he should upload the support-request ticket from the help desk to serve as evidence of the review
- C. The engagement supervisor should ask another manager-level internal auditor not associated with the project to sign the workpaper on his behalf
- D. The engagement supervisor should instruct the staff internal auditor to add a note in the workpaper on his behalf indicating that the workpaper was reviewed and feedback was provided
Answer: A
Explanation:
Given the situation where a system error prevents the engagement supervisor from adding her electronic signature to the workpapers, the most appropriate response to provide evidence of supervisory review is to print, sign, and date each workpaper after the review is complete, and then scan the document into the database as evidence of review. This ensures that there is a clear and traceable record of the supervisory review process, which is crucial for maintaining the integrity and reliability of the audit documentation.
* Printed Documentation: Printing the workpapers provides a physical copy that can be signed and dated, serving as a tangible record of the review.
* Signature and Date: The supervisor's signature and date indicate the completion of the review process and provide accountability.
* Scanning into Database: Scanning the signed documents back into the electronic workpaper database ensures that the evidence of review is stored in the system of record, maintaining consistency and accessibility.
This method upholds the standards of documentation and supervisory review, ensuring compliance with internal audit policies and procedures.
:
The Institute of Internal Auditors (IIA) Standards
IIA Practice Advisory: Documenting Information
NEW QUESTION # 59
According to IIA guidance, which of the following strategies would add the least value to the achievement of the internal audit activity's (IAA's) objectives?
- A. Establish a format and frequency for IAA reporting that is appropriate and aligns with the organization's governance structure.
- B. Align organizational activities to internal audit activities and measure according to the approved IAA performance measures.
- C. Use the results of IAA engagement and advisory reporting to guide current and future internal audit activities.
- D. Establish a periodic review of monitoring and reporting processes to help ensure relevant IAA reporting.
Answer: B
NEW QUESTION # 60
While reviewing engagement workpapers prepared by an internal audit team, the engagement supervisor identifies instances where there is no direct connection between certain workpapers and the engagement objectives. How should the engagement supervisor respond?
- A. Sign off on all workpapers, and arrange the documentation from most relevant to least relevant.
- B. Request that the internal auditors remove irrelevant workpapers from the records.
- C. Ensure that the final audit report indicates that the initial engagement objectives were expanded.
- D. Expand the scope of the audit and include the additional documentation.
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Per Standard 2330 - Documenting Information, workpapers must be sufficient, reliable, relevant, and useful. Irrelevant workpapers that do not support engagement objectives should not be retained, as they clutter documentation and weaken audit quality. The supervisor should ensure that only workpapers directly tied to objectives are included, which makes Option A correct.
NEW QUESTION # 61
An internal auditor s testing tor proper authorization of contracts and finds that the rate of deviations discovered in the sample is equal to the tolerable deviation rate. When of the following is the most appropriate conclusion for the internal auditor to make based on this result?
- A. The internal auditor concludes that management may be placing undue reliance on me specified control
- B. The internal auditor concludes that additional testing will be required to evaluate the specified control
- C. The internal auditor concludes that the specified control is more effective than it really is.
- D. The internal auditor concludes that the specified control is acceptably effective
Answer: D
Explanation:
When the rate of deviations discovered in the sample equals the tolerable deviation rate, it means that the control is functioning at the level deemed acceptable by the auditor's predefined criteria. This does not necessarily imply that the control is flawless, but rather that its effectiveness meets the minimum standards set by the audit plan. Therefore, the internal auditor can conclude that the control is acceptably effective, but should also note the potential need for improvement.References:
* The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2320 - Analysis and Evaluation
* COSO Framework - Control Activities
NEW QUESTION # 62
A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. Which of the following is most likely to explain the difference in the regional results?
- A. The more successful region spends 30 percent more money on education than does the other region.
- B. The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent.
- C. The more successful region spends more money per student on education than does the other region.
- D. A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.
Answer: C
NEW QUESTION # 63
A limitation of using ratio analysis in an audit engagement is that it:
- A. Is an expensive method of testing.
- B. Often uses financial information provided by management which has not been reviewed for reliability and validity.
- C. Requires computer software in order to develop meaningful interpretations of data.
- D. Is useful only when comparisons can be made across other industries.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 64
An internal audit manager is supervising an engagement. A senior auditor deviates from the approved engagement plan but meets all deadlines in the approved time schedule. Which activity is not required for the audit manager to provide proper engagement supervision?
- A. Approve the deviation from the engagement plan.
- B. Actively participate in audit procedures.
- C. Ensure compliance with the time schedule.
- D. Ensure that all engagement objectives are met.
Answer: B
NEW QUESTION # 65
Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?
- A. Residual risk.
- B. Audit risk.
- C. Inherent risk
- D. Sampling risk.
Answer: C
Explanation:
During the planning stage of an assurance engagement, internal auditors should focus their attention on identifying and assessing inherent risks. Inherent risk is the risk of a material misstatement or noncompliance due to error or fraud that could occur before any controls are applied. Understanding inherent risk is crucial as it helps auditors identify areas that may need more extensive testing and ensures that audit resources are appropriately allocated to the highest risk areas.
:
The Institute of Internal Auditors (IIA) Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000 IIA Standard 2010 - Planning
NEW QUESTION # 66
A large retail organization, which sells most of its products online, experiences a computer hacking incident. The chief IT officer immediately investigates the incident and concludes that the attempt was not successful. The chief audit executive (CAE) learns of the attack in a casual conversation with an IT auditor.
Which of the following actions should the CAE take?
1. Meet with the chief IT officer to discuss the report and control improvements that will be implemented as a result of the security breach, if any.
2. Immediately inform the chair of the audit committee of the security breach, because thus far only the chief IT officer is aware of the incident.
3. Meet with the IT auditor to develop an appropriate audit program to review the organization's Internet- based sales process and key controls.
4. Include the incident in the next quarterly report to the audit committee.
- A. 3 and 4
- B. 1 and 2
- C. 1 and 3
- D. 2 and 4
Answer: B
NEW QUESTION # 67
In which of the following situations would it be most appropriate to employ the services of a forensic specialist?
- A. Investigation of ghost employees in a large business.
- B. Review for misapplication of general computer controls over accounts receivable.
- C. Detection of unauthorized changes to source documents.
- D. Verification of fixed assets in a manufacturing company.
Answer: C
NEW QUESTION # 68
The human resources (HR) department was last reviewed three years ago and is due for an assurance engagement after undergoing recent process changes. Which of the following would the most effective option identify the HR department's risks and controls?
- A. Discuss the department's present strategies 'and objectives with the head of the HR department
- B. Review the organization's risk strategy and risk appetite framework
- C. Review the previous internal audit report and locus on key audit observations and action plans
- D. Meet with the chief operating officer 10 obtain Information about the MR department
Answer: A
NEW QUESTION # 69
A chief audit executive is preparing interview questions for the upcoming recruitment of a senior internal auditor. According to IIA guidance, which of the following attributes shows a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior?
- A. Initiative.
- B. Flexibility.
- C. Integrity.
- D. Curiosity.
Answer: D
NEW QUESTION # 70
----
Which of the following is correct with respect to roles within an enterprise-wide risk management process?
The board provides oversight to the risk management process.
Executive management owns the risk management framework.
Senior management is assigned ownership of risks.
Internal audit modifies the risk assessment determined by management.
- A. 1, 2, 3, and 4.
- B. 1 and 2 only.
- C. 1, 2, and 3 only.
- D. 3 and 4 only.
Answer: C
NEW QUESTION # 71
While reviewing the organization's financial year-end processes, an internal auditor discovered an erroneous journal entry. If the error is not addressed, it will result in a material misstatement of the financial records.
The internal auditor needs an additional four weeks to complete the audit engagement. How should the auditor communicate this finding?
- A. The auditor should include this item in the final audit report, marked with an asterisk, indicating that it is a high-risk item.
- B. The auditor is obligated to bypass management and immediately report the error directly to regulatory authorities.
- C. The auditor should discuss the finding with the appropriate accounting staff who can make the correction immediately, and if corrected before the engagement is concluded, the finding would not need to be included in the audit report.
- D. The auditor should issue an interim report to management prior to completion of the audit and issuance of the final report.
Answer: C
Explanation:
The correct approach aligns with the International Standards for the Professional Practice of Internal Auditing (Standards), particularly Standard 2400: Communicating Results. The auditor must promptly discuss material errors to prevent ongoing misstatements. Immediate correction ensures timely remediation and reduces the risk of material misstatement persisting in the financial records. Additionally, if the error is resolved before the engagement concludes, it may not necessitate inclusion in the final report, as per the guidance on handling material findings (Practice Advisory 2410-1). This approach also demonstrates collaboration and alignment with management, fostering trust.
NEW QUESTION # 72
......
The Best IIA IIA-CIA-Part2 Study Guides and Dumps of 2025: https://dumps4download.actualvce.com/IIA/IIA-CIA-Part2-valid-vce-dumps.html