CIA-Part2-2025

CIA-Part2-2025 practice questions, page 4 of 4, with answer review and explanations.

Question 16

What is the main purpose of completing a preliminary risk assessment before starting an assurance engagement's fieldwork?

  1. To set the objectives of the engagement.
  2. To establish adequate criteria for the subsequent evaluation of engagement findings.
  3. To confirm the risks identified through the internal audit function’s annual risk assessment.
  4. To develop recommendations for improvements to the risk management processes.

Question 17

An internal auditor is performing an engagement to determine whether quality control checks of electronic gaming systems are performed consistently among a technology company’s factories. Which of the following tests would support the audit engagement objectives?

  1. Obtain and review the organization’s policies and procedures to gain an understanding of the quality control checks performed on the gaming systems.
  2. Perform unannounced onsite observations at factories to help determine how employees perform quality control checks of the gaming systems in real time.
  3. Meet and discuss with the quality control supervisors at the facilities to obtain information about the processes related to the quality control of gaming systems.
  4. Use the organization’s manufacturing documentation to create a flowchart that shows how the gaming systems are built to meet the established quality control standards.

Question 18

What is an appropriate way for a chief audit executive (CAE) to gather information about the organization's tone at the top?

  1. Establish a network of internal informants to report on ethical topics in secret.
  2. Conduct regular meetings with CAEs of peer organizations.
  3. Attend meetings of executive committees as an observer.
  4. Carry out regular surveys to test employees' knowledge of the organization's code of conduct.

Question 19

An internal audit function is considering investing in data analytics software. The software would enable internal auditors to analyze large sets of data, create ongoing monitoring rules, and investigate anomalies.How would implementation of the software likely influence audit sampling?

  1. Internal auditors would likely spend more time establishing sampling parameters.
  2. Internal auditors would be able to implement statistical sampling instead of relying on judgmental sampling.
  3. Internal auditors would be able to test entire populations of transactions rather than sampling a subset.
  4. Internal auditors would likely be able to obtain source data for sampling more easily and efficiently.

Question 20

An organization has a loan agreement signed with a financial institution. An internal auditor found that the organization missed a project progress report submission deadline required in the loan agreement.Which action would be most appropriate to evaluate the significance of the finding?

  1. Send an inquiry to the financial institution asking for their perspective.
  2. Submit a request to a publicly accessible artificial intelligence tool to assess the significance of the breach.
  3. Calculate outstanding loan balances and due interest amounts to assess the significance of the breach.
  4. Involve a legal advisor to determine what the consequences of the breach could be.