May, 2024 IIA-CIA-Part2 Practice Questions

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Sample Question 1

If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

A. The experience and knowledge of the auditor.
B. The adverse consequences of noncompliance.
C. The acceptable level of risk of making an incorrect audit conclusion.
D. The cost of performing auditing procedures on sample selections.

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Sample Question 2

Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

A. Checks are not restrictively endorsed when received.
B. Only one signature is required on the organization's checks.
C. One employee handles both accounts receivable and purchase orders.
D. One employee handles both cash deposits and accounts payable.

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Sample Question 3

Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?

A. Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.
B. Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.
C. Use generalized audit software to match the claimant identification number with a master list of valid policyholders.
D. Develop batch controls over all items received from a particular hospital and process those claims in batches.

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