Questions for the IIA CIA PART2 were updated on : Dec 14 ,2025
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Question 1
questionnaire (ICQ) be the most effective tool for an internal auditor to use?
A. The auditor wants to receive mid-level management insight on how to improve hiring practices.
B. The auditor wants to obtain information on whether adherence to approval matrices is actually taking place in different maintenance units.
C. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures.
D. The auditor wants to assess whether different subsidiaries apply centrally established procurement rules in the same manner.
Answer:
D
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Question 2
take when establishing engagement objectives during the planning phase of an audit?
A. Review the organizational structure, management roles and responsibilities, and operating procedures.
B. Evaluate management's risk assessment and the internal audit activity's risk assessment.
C. Assess process flow and control documents used to meet regulatory requirements.
D. Review meeting notes from discussions involving management of the area to be reviewed.
Answer:
B
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Question 3
during the planning phase of an audit engagement?
A. To prepare for testing the effectiveness of controls.
B. To plan for evaluating potential losses.
C. To prepare a sampling plan for the engagement.
D. To evaluate the design of controls.
Answer:
D
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Question 4
critical factor for the Chief Audit Executive (CAE) to consider to ensure management takes appropriate corrective action?
A. The organization’s attitude to hierarchy.
B. The organization's whistleblowing strategy.
C. The organization’s ongoing risk monitoring process.
D. The organization’s risk management policy.
Answer:
C
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Question 5
an internal auditor to use when simulating transactions to test a billing application’s processing integrity?
A. Generalized audit software.
B. Utility software.
C. Integrated test facilities.
D. Audit expert systems.
Answer:
C
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Question 6
An internal auditor selects a sample of paid invoices and matches them to receiving reports. What is the most likely purpose for this procedure?
A. To ensure all customer shipments are billed appropriately.
B. To ensure invoices are only paid for goods received.
C. To ensure all liabilities have been satisfied.
D. To ensure invoices are only paid for goods ordered.
Answer:
B
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Question 7
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 issue an interim report to management prior to completion of the audit and issuance of the final report.
B. The auditor should include this item in the final audit report, marked with an asterisk, indicating that it is a high-risk item.
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 is obligated to bypass management and immediately report the error directly to regulatory authorities.
Answer:
C
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Question 8
While reviewing warehouse inventory records, an internal auditor noticed that the warehouse has a surprisingly high number of products in storage. Over the past three years, the auditor had visited this particular warehouse numerous times for previous engagements and remembered that the warehouse was rather small. The auditor then decided to compare the square footage of the warehouse to the recorded number of products in storage. The auditor’s action is an example of which of the following?
A. Performing a reasonableness test.
B. Conducting a fraud investigation.
C. Conducting trend analysis.
D. Operating with impaired objectivity.
Answer:
A
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Question 9
The chief audit executive (CAE) of an organization has completed this year’s risk-based audit plan and realized that current staff resources are insufficient to meet the needs of the plan. What course of action should the CAE take?
A. Amend the audit plan so that available audit resources are adequate to meet the plan’s requirements.
B. Inform the board and senior management of the resources needed, as well as the associated risks.
C. Communicate early to those unit managers whose areas would most likely not be able to get reviewed.
D. Get approval from human resources regarding overtime payment to be made in an effort to complete the audit plan.
Answer:
B
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Question 10
During a previous audit engagement, an internal auditor recommended that management implement a whistleblowing process. During follow-up, the auditor discovered that the process has been outsourced. Which of the following is the most appropriate response for the internal auditor?
A. Insist on establishing an internal whistleblowing process, as originally recommended, because this is a key control.
B. Review the agreement with the third-party service provider and ensure that appropriate controls are in place.
C. Raise the issue to a higher level of management, as outsourcing the process was not previously discussed or agreed upon.
D. Take no action, as management has accepted the risk of moving to a third party for this whistleblowing process.
Answer:
B
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Question 11
Which of the following would offer the strongest evidence to support the internal auditor's conclusion that a product is in stock, as stated in the accounting records?
A. The auditor performs an observation.
B. The vendor provides third-party confirmation.
C. The auditor documents interviews with multiple warehouse personnel.
D. Warehouse management submits photographs of the product on the inventory shelf.
Answer:
A
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Question 12
Which of the following engagements is likely to be most appropriate for an organization that is planning an acquisition?
A. A performance engagement.
B. A system security engagement.
C. A due diligence engagement.
D. A compliance engagement.
Answer:
C
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Question 13
According to IIA guidance, which of the following provides additional insight into errors, problems, missed opportunities, or noncompliance to improve the effectiveness and efficiency of an organization's control process?
A. Reperformance.
B. Vouching.
C. Independent confirmation.
D. Root cause analysis.
Answer:
D
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Question 14
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.
Answer:
B
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Question 15
Which of the following is an example of a compliance assurance engagement?
A. Providing in-house training to senior management regarding applicable laws and regulations.
B. Providing an assessment of the design adequacy of controls related to consumer privacy and confidentiality.
C. Providing an assessment of customer satisfaction with customer service provided by the organization.
D. Providing testing on the operating effectiveness of controls over the reliability of financial reporting.