Free IIA-CIA-Part2 Exam Braindumps (page: 37)

Page 37 of 128

As part of an operational audit, an auditor compared records of current inventory with usage during the prior two-year period and determined that the spare parts inventory was excessive.
What step should the auditor perform first?

  1. Determine the effects of a stock-out on the organization's profitability.
  2. Determine whether a clear policy exists for setting inventory limits.
  3. Determine who approved the purchase orders for the spare parts.
  4. Determine whether purchases were properly recorded.

Answer(s): B



A performance audit engagement typically involves:

  1. Review of financial statement information, including the appropriateness of various accounting treatments.
  2. Tests of compliance with policies, procedures, laws, and regulations.
  3. Appraisal of the environment and comparison against established criteria.
  4. Evaluation of organizational and departmental structures, including assessments of process flows.

Answer(s): C



The scope of a business process review primarily involves:

  1. Appraising the environment and comparing against established criteria.
  2. Assessing the organization's system of internal controls.
  3. Reviewing routine financial information and assessing the appropriateness of various accounting treatments.
  4. Evaluating organizational and departmental structures, including assessments of transaction flows.

Answer(s): D



An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between six and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for
addressing the weaknesses. Which of the following is the most appropriate course of action for the chief audit executive to take?

  1. Assess the adequacy of the action plan and monitor key dates and deliverables.
  2. Schedule a follow-up audit engagement to assess the status of corrective action.
  3. Reassign information systems auditors to assist the information technology department in correcting the weaknesses.
  4. Evaluate statistics related to unplanned system outages, unauthorized access attempts, and denials of service to assess the effectiveness of corrections.

Answer(s): A



Page 37 of 128



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NOOR commented on October 06, 2024
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