New 2026 Guaranteed Success with ValidBraindumps IIA-CIA-Part2 Dumps IIA PDF Questions [Q31-Q53]

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New 2026 Guaranteed Success with ValidBraindumps IIA-CIA-Part2 Dumps IIA PDF Questions

Exceptional Practice To Internal Audit Engagement Pass the First Time

IIA IIA-CIA-Part2 Exam Syllabus Topics:

Section	Weight	Objectives
Communicating Engagement Results and Monitoring Progress	20%	– Attributes of effective engagement communication: accurate, objective, clear, concise, constructive, complete, timely – Developing recommendations vs. requesting management action plans vs. collaborative approaches – Management response and action plan tracking – Disseminating final results to appropriate stakeholders – Communication of engagement results: objectives, scope, conclusions, recommendations, action plans – Monitoring and follow-up on the resolution of engagement findings – Reporting on the adequacy of management’s corrective actions
Planning the Engagement	20%	– Engagement planning procedures including data analytics and sampling – Understanding business processes, IT systems, and relevant regulations – Engagement objectives, scope, and resource allocation – Risk and control identification and assessment for the engagement – Detailed engagement work program development – Coordination with stakeholders during engagement planning
Performing the Engagement	40%	– Drawing conclusions and formulating recommendations – Development of engagement findings: criteria, condition, cause, and effect – Assessing IT governance, security, and control frameworks – Information gathering: interviews, observation, document review, and data analysis – Evaluation of fraud risk and fraud-related indicators during engagements – Assessing the adequacy and effectiveness of risk management and controls – Use of technology tools to support engagement execution (e.g., CAATs, data analytics) – Applying analytical approaches and process mapping techniques – Assessing compliance with laws, regulations, and organizational policies – Root cause analysis and evaluation of evidence
Managing the Internal Audit Activity	20%	– Managing financial, human, and IT resources within the internal audit function – Internal audit operations: planning, organizing, directing, and monitoring – Strategic role of internal audit within governance, risk management, and control – Coordination with external auditors and other internal assurance providers – Risk-based audit planning and alignment with organizational strategy – Knowledge management and information sharing across the internal audit activity

Q31. An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?
1.Allow the auditor to decide whether to extend the audit engagement.
2.Determine whether the work already completed is sufficient to conclude the engagement.
3.Provide the auditor feedback on areas of improvement for future engagements.
4.Provide the auditor with instructions and directions to complete the audit.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

Q32. An internal auditor suspects that employee turnover is unusually high at the organization’s primary manufacturing plant To investigate this potential issue which of the following analytical approaches is the auditor likely to use?

Ratio analysis

Vertical analysis

Benchmarking

Cost-benefit analysis.

Q33. Which of the following is typically not a reason for committing financial statement fraud?

To dispel negative market perception.

To disguise a duplicate payment to a vendor.

To obtain more favorable terms on financing.

To receive performance-related bonuses.

Q34. An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

The document management policy requires business client data to be stored in a specific management database

Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it

if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove

All staff should be appropriately trained and required to follow the organization’s established policies and procedures pertaining to document management

Q35. Which of the following reasonably represents best practices regarding what should be the level of internal audit resource investment in monitoring and following up on engagement outcomes?

Limited resources should be employed since the actual engagement is already completed and the onus of corrective actions rests with management

No resources should be exclusively deployed for that at all rather it should be planned as part of future engagements in the same area

Resources should only be provided towards this if doing so does not result in depletion of resources for new engagements planned in the current period

Resources should be allocated to this without conditions as long as doing so meets the expectations of management and the judgment of the chief audit executive.

Q36. An audit of an organization’s claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:

Adjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.

Discuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.

Schedule a follow-up engagement within six months to assess the status of corrective action.

Monitor the status of corrective action and schedule a follow-up engagement when appropriate.

Q37. Which of the following would most likely include recommendations for process improvements?
* Due diligence engagement.
* Forensic investigation.
* Internal audit engagement.
* Consulting engagement.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

Q38. Which of the following statements is true regarding internal control questionnaires?

Internal control questionnaires are useful m evaluating the effectiveness of standard operating procedures

internal control questionnaires provide reliable documents allowing internal auditors to cover many control procedures in little time

Internal control questionnaires can be used by internal auditors as an interview guide

Internal control questionnaires provide direct audit evidence which may need corroboration

Q39. When conducting research, which of the following is most important?

Using computer databases or the Internet to find all relevant sources.

Providing documentation of the reference sources.

Presenting only those facts that support the conclusion.

Presenting all contrary views to balance the opinion.

Q40. At a construction company, an internal auditor is planning an audit of the company’s process for designing and building grid connections The process involves customers making payments m three parts
* The first payment of 10% after approval of the customer s application
* The second payment of 70% prior to construction
* The third payment of 20% after construction is complete
Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?

Controls that ensure that grid connection design is finalized before construction is approved to begin

Controls that ensure construction orders are initiated after the second invoice is paid

Controls that ensure all three invoices are calculated correctly according to the total project cost

Controls that ensure that applications are verified for approval prior to initiating design and construction

Q41. Which of the following would most likely include recommendations for process improvements?
* Due diligence engagement.
* Forensic investigation.
* Internal audit engagement.
* Consulting engagement.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

Q42. According to IIA guidance, organizations have the most influence on which element of fraud?

Opportunity.

Rationalization.

Pressure.

Incentives.

Q43. During an audit of the accounts receivable (AR) process, an internal auditor noted that reconciliations are still not performed regularly by the AR staff, a recommendation that was made following a previous audit.
Monitoring by the financial reporting function has failed to detect the shortcoming. Both the financial reporting function and AR report to the controller, who is responsible for implementing action plans. Which of the following supports the internal auditor’s decision to combine both observations into one reported finding?

The observation was made during the same audit, and the action plan has a common owner.

The observation relates to the same control activity within a common process.

The observation has a common control, and it was noted in a prior audit.

The observation has a common process, and the action plan for the observation has a common owner.

Q44. An organization’s board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?

Manage and coordinate risk management processes.

Audit risk management processes.

Become involved in risk oversight committees, monitoring activities, and status reporting.

Accept management’s responsibility for risk management without board approval.

Q45. An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

Interviews provide the opportunity to insert questions to probe promising areas.

Interviews are the most efficient way to upgrade the information to the level of objective evidence.

Interviewing is the least costly audit technique when a large amount of information is involved.

Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.

Q46. The audit manager asked the internal auditor to perform additional testing because several irregularities were found in the financial information. Which of the following would be the most appropriate analytical review for the auditor to perform?

Compare the firm’s financial performance with organizations in the same industry

Interview all managers involved in preparing the financial statements

Perform a bank reconciliation to confirm the cash balance in the financial statements.

Trace each financial transaction to the original supporting document

Q47. The chief audit executive (CAE) of a new organization is in the process of determining the
manner in which audit reports will be distributed and to whom. According to the Standards, which of the following is the most appropriate course of action for the CAE to take to develop this distribution process?

The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.

The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.

The CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.

The CAE should request that senior management and the board meet to determine the most appropriate reporting method.

Q48. An internal control questionnaire would be most appropriate in which of the following situations?

Testing controls where operating procedures vary.

Testing controls in decentralized offices.

Testing controls in high risk areas.

Testing controls in areas with high control failure rates.

Q49. Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?

Questionnaires.

Surveys.

Structured interviews

Facilitated team workshops

Q50. An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?

Compare the planned outputs with the actual outputs.

Ascertain the costs of materials purchased.

Evaluate the plant’s ability to meet production quotas.

Review the levels of scrap and rework.

Q51. An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?
1. Allow the auditor to decide whether to extend the audit engagement.
2. Determine whether the work already completed is sufficient to conclude the engagement.
3. Provide the auditor feedback on areas of improvement for future engagements.
4. Provide the auditor with instructions and directions to complete the audit.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

Q52. An internal auditor is asked to review a recently completed renovation to a retail outlet. Which of the following would provide the most reliable evidence that the completed work conformed to the plan?

An interview with the employee who performed the work

An analysis of purchasing and receiving documentation

Existence of a signed completion document accepting the work

A physical inspection of the retail outlet.

Q53. Internal auditors map a process by documenting the steps in the process, which provides a framework for understanding. Which of the following is a reason to use narrative memoranda?

To create a detailed risk assessment.

To identify individuals who perform key roles.

To explain a simple process.

To document which outputs support other activities.