IIA-CIA-Part2 Practice Test

During an audit of a major metropolitan museum, an auditor was unable to locate selected items
from the museum's collection. The director of the museum informed the auditor that the upcoming
replacement of the museum's inventory tracking system would address the auditor's concerns.
What follow-up activity should the auditor propose?

A.

Receive periodic feedback from museum staff regarding the status of the system
implementation.

B.

Monitor the system implementation and schedule a follow-up review once the new system is in
place.

C.

Determine whether the items are indeed missing and assess the ability of the new system to
remedy the problem.

D.

 Schedule an audit of the museum's security systems to determine if theft is a problem.

An audit of a Web-based third-party payment processor determined that a programming error
enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and
notify customers with multiple accounts that the accounts would be consolidated. What should the
auditor do in response?
I. Amend the scope of the subsequent audit to verify that the program was corrected and that
accounts were consolidated.
II. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
III. Schedule a follow-up review to verify that the program was corrected and the accounts were
consolidated.
IV. Do nothing because management has agreed to address the problem.

A.

III only

B.

IV only

C.

 I and II only

D.

 II and III only

A company's cellular phone costs vary significantly by sales representative and by month. Which
of the following would be the most appropriate approach for a consulting project concerning this
issue?

A.

Control self-assessment involving sales representatives.

B.

Benchmarking with other cellular phone users.

C.

 Business process review of cellular phone needs.

D.

Performance measurement and design of the budgeting process

Which of the following would be the most effective method to prevent installation of new
equipment that does not meet environmental permit requirements, or to prevent modification of
current processes in such a way that they no longer meet permit requirements?

A.

Require that the environmental compliance department perform regular inspections of the
manufacturing facility to identify new equipment or process modifications in progress.

B.

Rely on annual inspections by various regulatory agencies to identify equipment or processes
that require a permit.

C.

Require that the staff of the environmental compliance department attend monthly safety
meetings in different parts of the facility so that they can hear directly from the workers about any
changes.

D.

 Include the environmental compliance department in the review of proposed process changes
and equipment purchases affecting permit requirements.

Which of the following types of internal audit consulting engagements is an example of a
facilitation service?
I. Conducting control self-assessment workshops.
II. Participating on standing committees.
III. Reviewing regulatory compliance.
IV. Benchmarking.
V. Estimating savings from outsourcing processes.

A.

I and IV only

B.

I, III, and IV only

C.

II, III, and V only

D.

I, II, III, IV, and V.