[Q34-Q51] Accurate & Verified 2026 New IIA-CIA-Part2 Answers As Experienced in the Actual Test!

QUESTION 34
The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan Which of the following would be the most appropriate action tor the CAE to take?

Use guest auditors from within the organization, and leverage their experience by assigning them to lead engagements m areas where they previously worked

Outsource some of the audits to the organization s external auditor who is already familiar with the organization

Invite nonauditors to join the internal audit activity for a two-year rotational position, and assign them to join audit teams that are reviewing areas where they have no previous management responsibility

Recruit recent college graduates and employ them as audit interns with an aim to offer permanent employment

QUESTION 35
An internal auditor wants to identity potential ghost employees in the organization’s payroll system The auditor extracts the following data
– Human resources data with employees’ names addresses employment conditions and identification codes
– Payroll data
– Logs from entrance systems
With this data, which of the following types of ghost employees will the auditor be able to identify?

Employees who are being paid more than then approved wages

Employees who get paid although their employment has expired

Employees who are related to one of the subcontractors

Employees who are physically present at the workplace but who do not perform the specified job duties

QUESTION 36
Which of the following statements about internal audit’s follow-up process is true?

The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

The actions of external auditors and other external assurance providers is not encompassed by internal audit’s follow-up process.

Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

QUESTION 37
An internal auditor develops an engagement observation related to an organization’s accumulation of large travel advances. The auditor observes that the organization’s procedures do not require justification for travel advances greater than a specific amount Which of the following best describes the organization’s procedures?

A criterion of the organization’s accumulation of large travel advances

A condition of the organization’s accumulation of large travel advances

A consequence of the organization’s accumulation of large travel advances

A cause of the organization’s accumulation of large travel advances

QUESTION 38
Which informal ion- gathering method would be most efficient for an internal auditor to determine whether specified control procedures are in place?

Interviews

Observations

Reperformance

Internal control questionnaires

QUESTION 39
Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?

To ensure adequate control over the custody of working papers is exercised by the auditor.

To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.

To ensure that the work papers create background for subsequent reviews.

To ensure that the audit programs are followed by the auditor.

QUESTION 40
Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?
I.Computerized tests to assess transaction reasonableness and validity.
II.
Review of log books to ensure that transactions are logged upon receipt.
III.
Edit checks to identify unusual transactions.
IV.
Verification of limitations on the authority of users to initiate specific EDI transactions.

I and IV only.

II and III only.

I, II, and III only.

I, II, III, and IV.

QUESTION 41
According to IIA guidance, which of the following is based on the results of a preliminary assessment of risks relevant to the area under review?

Audit findings

Audit resources

Audit objectives

Audit plan

QUESTION 42
While reviewing engagement workpapers prepared by an internal audit team, the engagement supervisor identifies instances where there is no direct connection between certain workpapers and the engagement objectives. How should the engagement supervisor respond?

Request that the internal auditors remove irrelevant workpapers from the records.

Sign off on all workpapers, and arrange the documentation from most relevant to least relevant.

Ensure that the final audit report indicates that the initial engagement objectives were expanded.

Expand the scope of the audit and include the additional documentation.

QUESTION 43
According to IIA guidance, which of the following is most likely to become part of the engagement work program?

Information obtained from historic audits and memos.

Risk and control registers or matrices.

Resource deployment plans and sampling methodologies.

Prior findings and management responses.

QUESTION 44
‘Internal policy prohibits employees from entering into contacts with financial obligations without proper approval.
A project manager signed a change to an important service agreement without obtaining the proper approval As a result the organization is receiving $5,000 per month less for its services.” Which of the following should be added to the observation?

The reason for not following the internal policy

A description of what constitutes proper approval

The annual impact of the changed agreement on cash flows

Details regarding when the change to the agreement was signed

QUESTION 45
A chief audit executive (CAE) determined that management chose to accept a high-level risk that may be unacceptable lo the organization. Which is the best course of action for the CAE to Follow?

Include using in a subsequent audit to determine if the risks are still present

Discuss the matter with senior management and it not reserved with the board

Require that management implement controls to mitigate lie risks

Report the risks to the process owners so that they can modify their process

QUESTION 46
An auditor evaluating excessive product rejection rates should investigate:
I.Communication between sales and production departments on sales returns.
II.
Volume of product sales year-to-date in comparison to prior year-to-date.
III.
Changes in credit ratings of customers versus sales to those customers.
IV.
Detailed product scrap accounts and accumulations.

I and III only.

I and IV only.

II, III, and IV only.

I, II, III, and IV.

QUESTION 47
According to MA guidance, which of the following factors should an internal auditor consider when assessing the likelihood of fraud risk1?

The effect on the organization’s reputation

Any potential damage to the organization’s relationship with customers.

Past fraud allegations and actual occurrences

The potential and realized financial impacts

QUESTION 48
Which of the following is one of the five basic tnanoal statement assertions when an internal auditor evaluates controls over financial reporting?

Reliability or appropriateness

Reasonableness

Existence or occurrence

Relevance

QUESTION 49
Which of the following is the primary purpose of financial statement audit engagements?

To assess the efficiency and effectiveness of the accounting department.

To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.

To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.

To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.

QUESTION 50
A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization’s attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

The corporate risk register.

The strategic plan.

Internal and external audit reports.

The board’s meeting records.

QUESTION 51
Which characteristic of risk assessment makes it a useful tool for audit planning?

It provides a list of auditable activities in the organization.

It ranks the severity of potentially adverse effects on the organization.

It provides a process for identifying and analyzing potentially adverse effects.

It evaluates the probability that an event or action may adversely affect the organization.

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