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The IIA-CIA-Part2 certification exam, also known as the Practice of Internal Auditing, is a globally recognized certification offered by the Institute of Internal Auditors (IIA). This certification is designed for internal auditors who are looking to enhance their knowledge and expertise in the field of internal auditing. The exam covers a wide range of topics, including risk management, governance, fraud, and ethics, among others.

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IIA Practice of Internal Auditing Sample Questions (Q120-Q125):

NEW QUESTION # 120
Which of the following internal audit procedures commonly involves sampling?

A. Vouching and tracingB. Confirmation and financial statement analysisC. Trend analysis and benchmarkingD. Reperformance and inspection

Answer: A


NEW QUESTION # 121
A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

A. Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.B. Send confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.C. Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.D. Verify the period of liability of subsequent cash disbursements using related supporting documentation.

Answer: A


NEW QUESTION # 122
Under what circumstances would internal audit not become involved when intentional misconduct is suspected?

A. Management is running a parallel investigation.B. Management is involved in wrongdoing.C. Management does not maintain strong internal controls.D. Management does not believe a trusted employee could be guilty.

Answer: A


NEW QUESTION # 123
A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?
1. The client manager and her superior.
2. Anyone who may object to the report's validity.
3. Anyone required to take action.
4. The same individuals who receive the final report.

A. 1, 2, and 3B. 1, 2, and 4C. 1 and 2 onlyD. 1 only

Answer: A

Explanation:
Section: Volume E


NEW QUESTION # 124
Which of the following trends found on financial reports would most likely indicate a possible problem?

A. A material increase in inventory turnover.B. A material decrease in the receivables turnover.C. A material increase in daily sales compared to total outstanding receivables.D. A material increase in the acid-test ratio.

Answer: B


NEW QUESTION # 125
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