New IIA-CIA-Part2 Test Practice, IIA-CIA-Part2 Questions Exam

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IIA Practice of Internal Auditing Sample Questions (Q69-Q74):

NEW QUESTION # 69
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur.
The auditor should:

A. Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.
B. Apply analytical procedures to areas that might be impacted by possible fraudulent activities.
C. Plan detailed tests of the areas that have the highest dollar amount of transactions.
D. Interview employees to identify areas where the fraud could be occurring.

Answer: B

Explanation:
Section: Volume A

NEW QUESTION # 70
When assessing the risk associated with an activity, an internal auditor should:

A. Provide assurance on the management of the risk.
B. Modify the risk management process based on risk exposures.
C. Determine how the risk should best be managed.
D. Design controls to mitigate the identified risks.

Answer: A

NEW QUESTION # 71
In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the:

A. Attribute of interest.
B. Population.
C. Sample.
D. Sampling unit.

Answer: B

Explanation:
Section: Volume A

NEW QUESTION # 72
An internal auditor provided the following statement about division A's performance during the month:
"Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?
I. Division A's production level declined by 15 percent.
II. Division A could have sold more products than it produced.
III. Division A usually sells all of the products that it produces.

A. III only
B. I only
C. I and II only
D. II only

Answer: D

Explanation:
Section: Volume A

NEW QUESTION # 73
Which of the following is an advantage of an interim report?
I.An interim report provides timely feedback to the audit engagement client.
II.
An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated.
III.
An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed.
IV.
An interim report increases the probability that corrective action will be initiated more quickly.

A. II and III only.
B. I, III, and IV only.
C. I and IV only.
D. I, II, III, and IV.

Answer: B

NEW QUESTION # 74
......

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