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IIA-CIA-Part2: Practice of Internal Auditing exam is one of the most sought-after certifications by individuals looking for a career in internal auditing. Practice of Internal Auditing certification is offered by the Institute of Internal Auditors (IIA), a global organization that provides professional development, guidance, and certification to internal auditors worldwide. The IIA-CIA-Part2 Exam is designed to test the candidate's knowledge, skills, and abilities in the practice of internal auditing.
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To advance your career, take the Practice of Internal Auditing exam. Your Practice of Internal Auditing demonstrates your commitment to lifelong learning. Passing the Practice of Internal Auditing exam in one sitting is not a walk in the park. The IIA IIA-CIA-Part2 exam preparation process takes a lot of time and effort. You have to put time and money into passing the Practice of Internal Auditing exam. The best method to reap the rewards of your investment in becoming an IIA Horizon & IIA is by using IIA IIA-CIA-Part2 Exam Questions. Additionally, you can confidently study for the IIA-CIA-Part2 exam.
IIA Practice of Internal Auditing Sample Questions (Q382-Q387):
NEW QUESTION # 382
During the planning process for a human resources audit, an internal auditor obtains an organizational chart.
The auditor observes a flat organizational structure. Which of the below risks should the auditor consider for this engagement?
- A. Communication is likely to be top-down, with little feedback from lower-level employees.
- B. Transactions and decision-making require multiple approvals, resulting in processing delays.
- C. Employees have little autonomy, which may result in employee turnover or low morale.
- D. Career and promotion paths are not easily visible and defined.
Answer: D
Explanation:
In flat organizational structures, there are fewer hierarchical levels, which can create challenges with career progression and promotion opportunities (B).
* Option A applies to hierarchical structures.
* Option C is associated with centralized structures.
* Option D contradicts flat structures, where employees typically have more autonomy.
Thus, the key risk is unclear career and promotion paths.
NEW QUESTION # 383
An organization's finance manager plans to implement a state-of-the-art management system to better manage the organization's receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system. How would the CAE proceed to determine the objectives of this engagement
- A. Discuss the concerns with the finance manager and work together to agree on the engagement objectives
- B. Request that the board disclose its concerns over governance for inclusion in the engagement
- C. Ask the CEO to determine the scope and objectives of the engagement
- D. Review previous audit reports from the area and develop engagement objectives to address the area's key risks and controls
Answer: A
Explanation:
The CAE should discuss the concerns with the finance manager and work together to agree on the engagement objectives. This collaborative approach ensures that the engagement objectives are aligned with the finance manager's needs and expectations, and it allows the CAE to provide relevant and tailored assistance regarding the new management system for managing receivables.
Reference:
IIA Standards: 2010 - Planning
IIA Practice Guide: Consulting Services
NEW QUESTION # 384
According to the Standards, which of the following is true regarding the auditor's inclusion of management's satisfactory performance in the final audit report?
- A. Auditors must include satisfactory performance with the approval of the board.
- B. Satisfactory performance should only be acknowledged with the advice of corporate counsel.
- C. Acknowledgement of satisfactory performance is encouraged but not required.
- D. There are no standards to address the inclusion of satisfactory performance.
Answer: C
Explanation:
The International Standards for the Professional Practice of Internal Auditing encourage auditors to acknowledge satisfactory performance to provide a balanced report. However, it is not a mandatory requirement. Including positive observations can help foster a constructive relationship with management and provide a more balanced view of the audited area.
Reference:
The Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards)
"Internal Auditing: Assurance and Advisory Services" by Urton L. Anderson et al.
NEW QUESTION # 385
Which type of engagement would be the most appropriate to assess the maturity and rigor of the organizationwide risk management process of a target entity that management is considering acquiring?
- A. A due diligence engagement.
- B. An operational audit engagement.
- C. A feasibility study engagement.
- D. A risk and control self-assessment engagement.
Answer: A
Explanation:
A due diligence engagement is the most appropriate type of engagement for assessing the maturity and rigor of the organization-wide risk management process of a target entity that management is considering acquiring. Due diligence involves a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential. It typically includes evaluating financials, operational processes, and risk management frameworks to ensure informed decision- making about the acquisition.
The Institute of Internal Auditors (IIA), Practice Guide on Due Diligence
"Mergers and Acquisitions: A Step-by-Step Legal and Practical Guide" by Edwin L. Miller, Jr.
NEW QUESTION # 386
An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?
- A. Confirm the decision with management and document this decision in the audit file.
- B. Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
- C. Initiate an assurance engagement on the unresolved issues.
- D. Document the issue in the audit file and follow up until the issues are resolved.
Answer: A
Explanation:
When a client decides not to implement recommended process improvements from a consulting engagement, the internal audit activity should confirm the decision with management and document it in the audit file. This approach ensures that the audit trail is complete and that there is a record of management's acceptance of the associated risks. Escalating the issue to the board (Option A) or initiating an assurance engagement (Option D) might be necessary if the risks are significant, but these actions are not the immediate next steps.
Continuous follow-up (Option C) is more relevant to assurance engagements rather than consulting engagements.
:
IIA Standard 2500: Monitoring Progress.
IIA Practice Guide on Consulting Engagements.
NEW QUESTION # 387
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