Free Certified Internal Auditor – Part 2, Conducting the Internal Audit Engagement Exam IIA-CIA-Part2 Exam Practice Test

Besides a chief audit executive's professional experience what determines the frequency and approach to assessing residual risk?

• The frequency of executing the internal audit engagements
• The frequency of changes in the organization environment
• The expectations set by the board and senior management
• The expectations set by operating management and senior management

An internal auditor wants to identity potential ghost employees in the organization's payroll system The auditor extracts the following data- Human resources data with employees' names addresses employment conditions and identification codes- Payroll data- Logs from entrance systemsWith this data, which of the following types of ghost employees will the auditor be able to identify?

• Employees who are being paid more than then approved wages
• Employees who get paid although their employment has expired
• Employees who are related to one of the subcontractors
• Employees who are physically present at the workplace but who do not perform the specified job duties

A healthcare organization's chief audit executive (CAE) noted that the organization's IT team relies heavily on a vendor. Therefore an IT vendor assessment review was added to the annual audit plan. During the review, the audit team discovered that the vendor had not been performing proper monitoring to ensure that the subcontractors it hired comply with the organization requirements. The organization's chief information officer (ClO) does not agree with the audit team's recommendation for the IT team to monitor the compliance level of vendor subcontractors. How should the audit team proceed to resolve this situation?

• Write a risk acceptance memo for the CIO to sign acknowledging the observation and indicating a willingness to accept the risk.
• Provide an example of the attestation form that vendors must use. Then, recommend that the IT team require vendors to submit the attestation form on a regular basis.
• Escalate the issue to the audit committee, as the CIO is unwilling to implement the recommended action plan.
• Escalate the issue to the CAE to assess whether the ClO's reasoning is acceptable.

An internal auditor wanted to determine whether company vehicles were being used for personal purposes She extracted a report that listed company vehicle numbers business units to which the vehicles are allocated travel dates, travel duration and mileage She then filtered the data for weekend dates Which of the following additional information would the auditor need?

• Names and work titles of employees
• Description of responsibilities of business units.
• Average fuel consumption data of vehicles
• Location and route data of vehicles

The head of customer service asked the chief audit executive (CAE) whether internal auditors could assist her staff with conducting a risk self-assessment in the customer service department The CAE promised to meet with customer service managers analyze relevant business processes and come up with a proposal Who is most likely to be the final approver of the engagement objectives and scope?

• Senior management of the organization
• The chief audit executive
• The head of customer service
• The board of directors

An internal auditor is testing the success of the IT support department in meeting the service levels guaranteed to small, medium and large customers. The customer's size classification is based on its annual expenditures with the organization and the nature and extent of services it receives. Which of the following sampling techniques would be the most suitable to select customers for this test?

• Interval sampling
• Cluster sampling
• Stop-and-go sampling
• Stratified sampling

Which of the following statements is false regarding audit criteria?

• Audit criteria should be consistent across audit assignments.
• Audit criteria should represent reasonable standards against which to assess existing conditions.
• Audit criteria should provide flexibility but allow identification of nonadherence.
• Audit criteria should equate to good or acceptable management practices.

A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?1. The client manager and her superior.2. Anyone who may object to the report's validity.3. Anyone required to take action.4. The same individuals who receive the final report.

• 1 only
• 1 and 2 only
• 1, 2, and 3
• 1, 2, and 4

In which of the following situations has an internal audit of obtained physical evidence?

• An internal auditor made purchases from several of the organization's retail outlets to evaluate customer service
• An internal auditor interviewed various employees regarding health and safety issues and recorded their answers
• An internal auditor obtained the current quarterly financial report and computed changes in deb-to-equity ratio
• An internal auditor received a signed confirmation regarding the terms of a transaction from an independent attorney

What type of audit engagement would be the most appropriate to determine how an organization could be more profitable in the long term?

• Operational audit
• Compliance and financial audit
• Performance audit
• Quality audit