Free CIA part 2 exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the CIA part 2 exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1What must the objectives of an internal audit engagement describe?

   1. A. The purpose and specific goals of the engagement
   2. B. The workpaper format and retention period
   3. C. The audit team's staffing and travel costs
   4. D. The timing of management's action plans

   Answer: A

   Explanation: The objectives define what the engagement seeks to accomplish. The Standards state, "The engagement objectives must articulate the purpose of the engagement and describe the specific goals to be achieved, including those mandated by laws and/or regulations."

   Reference: Global Internal Audit Standards — Requirements, p. 98

2. 2To understand how a process actually operates, which information-gathering method allows auditors to watch it in action?

   1. A. Direct observation or a walk-through
   2. B. An interview about the written procedure without watching performance
   3. C. Review of the process policy without seeing a transaction
   4. D. Analysis of completed transactions without watching the steps

   Answer: A

   Explanation: The Standards list "Directly observing a process, also known as performing a walk-through." This method shows actual process operation.

   Reference: Global Internal Audit Standards — Considerations for Implementation, p. 105

3. 3When does engagement supervision begin and how long does it continue?

   1. A. It begins in planning and continues throughout the engagement
   2. B. It begins only after the final communication
   3. C. It occurs only when a significant finding is issued
   4. D. It ends when the work program is drafted

   Answer: A

   Explanation: The Standards state, "Supervision begins with planning and continues throughout the engagement."

   Reference: Global Internal Audit Standards — Considerations for Implementation, p. 86

4. 4Which element defines the boundaries of an internal audit engagement?

   1. A. The resource budget
   2. B. The engagement conclusion
   3. C. The engagement scope
   4. D. The risk rating scale

   Answer: C

   Explanation: Scope identifies the focus and boundaries of the work. The Standards say, "The scope must establish the engagement’s focus and boundaries by specifying the activities, locations, processes, systems, components, time period to be covered in the engagement, and other elements to be reviewed, and be sufficient to achieve the engagement objectives."

   Reference: Global Internal Audit Standards — Requirements, p. 98

5. 5A team needs explanations from staff who perform an activity. Which gathering procedure is suitable?

   1. A. Reviewing procedure documents without speaking to the staff
   2. B. Interviewing or surveying those individuals
   3. C. Observing transactions without asking staff to explain decisions
   4. D. Analyzing system data without obtaining staff explanations

   Answer: B

   Explanation: The Standards include "Interviewing or surveying individuals involved in the activity." These methods obtain information from process participants.

   Reference: Global Internal Audit Standards — Considerations for Implementation, p. 105

6. 6What must the chief audit executive or engagement supervisor provide to auditors during engagement work?

   1. A. A single instruction at planning with no fieldwork support
   2. B. Guidance throughout the engagement
   3. C. Only a final performance rating after work concludes
   4. D. Only a work program with no further engagement guidance

   Answer: B

   Explanation: Standard 12.3 says the chief audit executive or supervisor must "provide internal auditors with guidance throughout the engagement" and verify work quality.

   Reference: Global Internal Audit Standards — Requirements, p. 90

7. 7During planning, management denies access to records needed for the approved work program. How should the internal auditors initially address this scope limitation?

   1. A. Treat the missing records as evidence that controls failed
   2. B. Issue the final engagement conclusion immediately
   3. C. Discuss the limitation with management to seek resolution
   4. D. Remove the affected procedure without discussion

   Answer: C

   Explanation: The initial response is discussion aimed at resolving the limitation. The Standards require, "Scope limitations must be discussed with management when identified, with a goal of achieving resolution."

   Reference: Global Internal Audit Standards — Requirements, p. 98

8. 8An auditor needs to verify a recorded balance with someone outside the activity under review. Which procedure fits that objective?

   1. A. Compare the balance to a prior internal report
   2. B. Recalculate the balance from the activity's own records
   3. C. Obtain confirmation from an independent individual
   4. D. Ask the record preparer to repeat the amount

   Answer: C

   Explanation: The Standards list "Obtaining confirmation or verification of information from an individual who is independent of the activity under review." Independence addresses the stated source need.

   Reference: Global Internal Audit Standards — Considerations for Implementation, p. 105

9. 9Which factor affects the extent of supervision needed for an engagement?

   1. A. The planned report length regardless of engagement complexity
   2. B. A fixed supervision level for all auditors and engagements
   3. C. Auditors' proficiency and engagement complexity
   4. D. The number of meetings without regard to auditor proficiency

   Answer: C

   Explanation: The Standards say, "The extent of supervision required depends on the maturity of the internal audit function, the proficiency and experience of internal auditors, and the complexity of engagements."

   Reference: Global Internal Audit Standards — Requirements, p. 90

10. 10A scope limitation remains unresolved after discussion with management. Who must elevate the issue to the board under the Standards?

    1. A. The chief audit executive
    2. B. The external auditor
    3. C. The activity's process owner
    4. D. The engagement team leader

    Answer: A

    Explanation: Escalation at this stage belongs to the chief audit executive. The Standards state, "If a resolution cannot be achieved with management, the chief audit executive must elevate the scope limitation issue to the board according to an established methodology."

    Reference: Global Internal Audit Standards — Requirements, p. 98