IIA-CIA-Part2 Exam Questions and Answers

QUESTION: 46 Exam Topic: 1, Volume A

The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?

Initiate a follow-up audit to ensure that action has really been taken.
Follow-up with management until a written response is obtained.
Escalate the issue to the board and get their position on the issue.
Note in the permanent file that follow-up needs to be performed as part of the next engagement.

Answer(s): D

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QUESTION: 47 Exam Topic: 1, Volume A

Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?

Include both the audit finding and the client's position in the audit report.
Defer reporting the item and plan to perform more detailed work during the next audit.
Change the finding so that it is acceptable to the client.
Address the issue with senior management and the board for resolution prior to issuing the final report.

Answer(s): A

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QUESTION: 48 Exam Topic: 1, Volume A

A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. Which of the following is most likely to explain the difference in the regional results?

The more successful region spends 30 percent more money on education than does the other
region.
A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.
The more successful region spends more money per student on education than does the other region.
The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent.

Answer(s): C

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QUESTION: 49 Exam Topic: 1, Volume A

Which of the following would constitute a violation of the IIA Code of Ethics?

An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.
An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.
An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.
An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.

Answer(s): C

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QUESTION: 50 Exam Topic: 1, Volume A

An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in:

Identifying products for which management has not been attuned to changes in market demand.
II. Identifying potential problems in purchasing activities.
III. Identifying obsolete inventory.
III only
I and II only
II and III only
I, II, and III

Answer(s): D

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IIA IIA-CIA-Part2 Exam (page: 10) IIA Certified Internal Auditor - Part 2, Practice of Internal Auditing Updated on: 25-Dec-2025

QUESTION: 46 Exam Topic: 1, Volume A

QUESTION: 47 Exam Topic: 1, Volume A

QUESTION: 48 Exam Topic: 1, Volume A

QUESTION: 49 Exam Topic: 1, Volume A

QUESTION: 50 Exam Topic: 1, Volume A

IIA IIA-CIA-Part2 Exam (page: 10)
IIA Certified Internal Auditor - Part 2, Practice of Internal Auditing
Updated on: 25-Dec-2025