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IIA-CIA-Part2 exam is a certification exam offered by the Institute of Internal Auditors (IIA) that focuses on the practice of internal auditing. IIA-CIA-Part2 exam is designed to test the knowledge and skills of candidates in areas such as internal audit planning, execution, communication, and risk management. Practice of Internal Auditing certification is highly respected in the internal audit profession as it demonstrates a level of competence and expertise in the practice of internal auditing.
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IIA-CIA-Part2 (Practice of Internal Auditing) Certification Exam is a globally recognized certification that is designed for individuals who are interested in pursuing a career in internal auditing. IIA-CIA-Part2 Exam is conducted by the Institute of Internal Auditors (IIA) and is one of the most comprehensive exams in the field of internal auditing. Practice of Internal Auditing certification provides a comprehensive understanding of internal auditing practices, processes, and principles.
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IIA Practice of Internal Auditing Sample Questions (Q358-Q363):
NEW QUESTION # 358
An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased.
Which of the following actions would best enable an internal auditor to satisfy this objective?
- A. Analyze the provision for sales allowances.
- B. Research the rationale for customer returns.
- C. Evaluate the volume and characteristics of products rejected during processing.
- D. Analyze the percentage of scrap incurred during production.
Answer: C
NEW QUESTION # 359
In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?
- A. Batches of materials that must be confirmed as meeting quality standards
- B. Inventory comprised of the same items stored in different warehouses
- C. Tax reports submitted to meet the requirements of the local taxation authority
- D. Revenue that is earned by an organization through cash receipts or as receivable.
Answer: D
Explanation:
Stratified sampling is used when the population can be divided into distinct subgroups (strata) that differ significantly from each other but are internally homogeneous. In the context of auditing, revenue earned through cash receipts or as receivables would have different characteristics and risk profiles. Stratifying the population allows the auditor to ensure that each subgroup is adequately represented in the sample, leading to more reliable and accurate audit conclusions.
Reference:
The Institute of Internal Auditors (IIA) Practice Guide: Audit Sampling IIA Standard 2320 - Analysis and Evaluation
NEW QUESTION # 360
Which of the following statements is true?
- A. An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.
- B. Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.
- C. If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
- D. When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
Answer: D
NEW QUESTION # 361
A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?
- A. Both total sales and cost of ingredients used are greater than expected.
- B. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
- C. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
- D. Both total sales and cost of ingredients used are less than expected.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 362
Which of the following best exemplifies having effective risk management and internal control processes?
- A. Risk information is communicated to customers and suppliers
- B. Business profitability is likely to be achieved
- C. Relevant risk indicators and mitigation plans are in place
- D. All risks are identified and assessed
Answer: B
NEW QUESTION # 363
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