← Back to exam page

IIA-CIA-Part2 – Certified Internal Auditor - Part 2, Conducting the Internal Audit Engagement

Loading demo links...

Showing 4–6 of 20 questions

Question 4 (Volume D)

Which of the following is not true regarding the management of internal audit resources?

Select an option, then click Submit answer.

  • ○

    A minimum level of information technology knowledge is necessary.
  • ○

    The adequacy of internal audit resources is ultimately a board responsibility.
  • ○

    Resources include external service providers and computer-assisted audit techniques.
  • ○

    Skills availability must be aligned with financial constraints.
Question 5 (Volume E)

Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process. Which of the following is true regarding the validity of the observation closure?

Select an option, then click Submit answer.

  • ○

    Valid closure requires evidence that ensures the corrected process will function as expected in the future.
  • ○

    Valid closure requires the client to address not only the condition, but also the cause of the condition.
  • ○

    Valid closure of an observation ensures it will be included in the final engagement report.
  • ○

    Valid closure requires assurance from management that the original problem will not recur in the future.
Question 6 (Volume B)

Which of the following is a red flag associated with improper asset valuation?

Select an option, then click Submit answer.

  • ○

    Unusual increase in gross margin.
  • ○

    Unusual decrease in the number of days' purchases in inventory.
  • ○

    Recurring positive cash flows from operations.
  • ○

    Allowance for bad debts that is increasing in percentage terms.