Vendor: IIA
Exam Code: IIA-CIA-Part2 cissp dumps
Exam Name: Certified Internal Auditor - Part 2,
Conducting the Internal Audit Engagement
Version: DemoDEMO
QUESTION 1
Which of the following would be the least 400-251 dumps important reason for a company to merge with another
company?
A. To diversify risk.
B. As a response to new government policy.
C. To reduce labor costs.
D. To increase stock prices.
Correct Answer: D
QUESTION 2
Which of the following actions by management would reduce an employee's opportunity to commit fraud?
A. Establishing physical controls over company assets.
B. Eliminating bonuses tied to sales or other performance goals.
C. Defining ethical behavior expectations in the company handbook.
D. Identifying consequences, such as termination, for fraudulent activities.
Correct Answer: A
QUESTION 3
Which of the following is typically not a reason for committing financial statement fraud?
A. To dispel negative market perception.
B. To disguise a duplicate payment to a vendor.
C. To obtain more favorable terms on 210-260 dumps financing.
D. To receive performance-related bonuses.
Correct Answer: B
QUESTION 4
In a payroll audit, a staff auditor suspects that signatures on some of the documents being sampled for
examination are not authentic. What action should the auditor take before proceeding with the
examination?
A. Suggest to the payroll manager that the suspicious documents should be sent to the organization's
security department for forensic review.
B. Keep the suspicious documents in the workpaper file until the end of the engagement, and then
discuss the suspicions with the payroll manager.
C. Discuss the suspicious documents with payroll staff to 300-115 dumps seek their views on the authenticity of the
signatures.
D. Review the suspicious documents with the chief audit executive and seek advice concerning further
examination.
Correct Answer: D
QUESTION 5
When planning an audit engagement, what should an internal auditor first consider when assessing the
risk of fraud in the area to be audited?
A. Impact of and exposure to fraud.
B. Existence of evidence of fraud.
C. Organizational structure.
D. Management's risk appetite.Correct Answer: A
QUESTION 6
A major insurance company provides a discount on automobile 100-105 dumps insurance if the vehicle meets certain
safety criteria. Which of the following audit tests would provide an internal auditor with the best evidence
that all qualifying insured automobiles are receiving the discount?
A. Compare the percentage of automobiles receiving discounts this year to that of last year.
B. Ask managers whether they are aware of the discount criteria and whether they are providing the
discount to all qualifying automobiles.
C. Select a sample of automobiles that are not receiving the discount and determine if they have been
properly excluded.
D. Select a sample of automobiles receiving the discount and determine that the required discount criteria
are being met.
Correct Answer: C
QUESTION 7
The internal auditor's opinion in terms of due professional care should be:
A. Limited to the effectiveness of internal controls.
B. Expressed only when consensus with top management has been achieved.
C. Based on experience and free of all bias.
D. Based on sufficient factual evidence.
Correct Answer: D
QUESTION 8
An internal audit manager is supervising an 300-101 dumps engagement. A senior auditor deviates from the approved
engagement plan but meets all deadlines in the approved time schedule. Which activity is not required for
the audit manager to provide proper engagement supervision?
A. Actively participate in audit procedures.
B. Ensure that all engagement objectives are met.
C. Approve the deviation from the engagement plan.
D. Ensure compliance with the time schedule.
Correct Answer: A
QUESTION 9
The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality
assessment program. According to IIA guidance, which of the following would be part of this program?
A. Assessment of the IAA conducted independently of client feedback, and the review of individual audits
to determine the quality and timeliness of supervision.
B. Assessment of the IAA conducted independently of client feedback, and identified areas of
improvement reviewed at the end of the year.
C. Compliance with a checklist of required audit 210-065 dumps procedures, and review of individual audits to determine
the quality and timeliness of supervision.
D. Compliance with a checklist of required audit procedures, and identified areas of improvement
reviewed at the end of the year.
Correct Answer: C
QUESTION 10
According to the Standards, which of the following best describes what must be agreed upon to establish
an understanding with clients prior to starting a consulting engagement?
A. The engagement objectives, access to clients records, and expectations.B. The engagement objectives, scope, and time frame to complete the engagement.
C. The engagement scope, opportunities for making significant improvements, and client expectations.
D. The engagement objectives, scope, respective 640-911 dumps responsibilities, and other client expectations.
Correct Answer: D
