Question No. 1

According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

AHaving no active role or involvement in the risk management process.

BAuditing the risk management process for reasonableness.

CCoordinating and managing the risk management process.

DParticipating with management in identifying and evaluating risks.

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Correct Answer: C

Question No. 2

According to IIA guidance, which of the following would not be a consideration for the internal audit activity (IAA) when determining the need to follow-up on recommendations?

ADegree of effort and cost needed to correct the reported condition.

BComplexity of the corrective action.

CImpact that may result should the corrective action fail.

DAmount of resources required to conduct the follow-up activities.

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Correct Answer: D

Question No. 3

Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization's risk management program?

AIdentifying and managing risks in line with the entity's risk appetite.

BEnsuring that a proper and effective risk management process exists.

CAttaining an adequate understanding of the entity's key mitigation strategies.

DIdentifying and ensuring that appropriate controls exist to mitigate risks.

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Correct Answer: C

Question No. 4

Which of the following is a detective control for managing the risk of fraud?

AAwareness of prior incidents of fraud.

BContractor non-disclosure agreements.

CVerification of currency exchange rates.

DReceipts for employee expenses.

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Correct Answer: C

Question No. 5

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

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

BPrevious management action plans addressing prior internal audit recommendations remain incomplete.

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

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

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Correct Answer: C

Free IIA IIA-CIA-Part2 Exam Actual Questions

The questions for IIA-CIA-Part2 were last updated On May 2, 2024