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IIA-CIA-Part2 or the Practice of Internal Auditing exam is one of the most important exams for individuals seeking to become certified internal auditors. IIA-CIA-Part2 exam is designed to test the candidate's knowledge of internal auditing concepts, practices, and principles. The IIA-CIA-Part2 Exam is divided into three sections, each covering different aspects of internal auditing such as risk management, governance, and communication.

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IIA Practice of Internal Auditing Sample Questions (Q387-Q392):

NEW QUESTION # 387
Which of the following should be included in a privacy audit engagement?
1. Assess the appropriateness of the information gathered.
2. Review the methods used to collect information.
3. Consider whether the information collected is in compliance with applicable laws.
4. Determine how the information is stored.

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

Answer: A

NEW QUESTION # 388
Which of the following statements is true regarding the use of internal control questionnaires (ICOs)?

A. Controls with positive survey responses can be eliminated from further testing
B. ICQs are efficient because they minimize the need for follow-up with survey respondents
C. Answers to survey questions can be easily misinterpreted
D. ICQs offer limited value for organizations with uniform procedures

Answer: D

NEW QUESTION # 389
A company used simple regression analysis to analyze maintenance costs against machine hours (MH) for a 26-week period when the plant was in full operation. The regression yielded the following estimated cost function:
Maintenance Cost = $60 + $0.25/MH
The regression analysis also generated a coefficient of determination (R2), or goodness of fit, of
0.85. Which of the following statements regarding this regression analysis is appropriate?

A. This regression can be used to determine the maintenance cost for any period at any activity level by substituting the machine hours in the equation.
B. The coefficient of determination of R2 = 0.85 indicates that the goodness of fit is poor because the value is close to the maximum value of one.
C. The $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.
D. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.

Answer: D

NEW QUESTION # 390
An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?
1. Daily report that identifies unsuccessful system log-in attempts.
2. Weekly management communication with tips on identifying possible fraud.
3. E-mail alert sent to management for checks issued over $100,000.00.
4. New hire training to explain fraud and employee misconduct.

A. 1 and 3 only
B. 2 and 4 only
C. 3 and 4 only
D. 1 and 2 only

Answer: A

NEW QUESTION # 391
Company A has a formal comprehensive corporate code of ethics while company B does not.
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
I. Company A exhibits a higher standard of ethical behavior than does company B.
II. Company A has established objective criteria by which an employee's actions can be evaluated.
III.
The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

A. III only
B. II only
C. II and III only
D. I and II only

Answer: B

NEW QUESTION # 392
......

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