IIA IIA-CIA-PART1 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 91:

  Which data analytics competency is critical for new internal auditors to possess in order to plan and perform internal audit engagements in conformance with the Standards?

  A. Describe data analytics and the application of data analytics methods in internal auditing.
  B. Apply data analytics methods in internal auditing.
  C. Evaluate the use of data analytics in an internal audit.
  D. Understand the definition of data analytics only.
  B. Apply data analytics methods in internal auditing.

• Question 92:

  Which of the following is a key determinant used by external auditors to decide whether they can rely on work performed by the internal audit activity?

  A. The auditors' independence.
  B. The auditors' objectivity.
  C. The auditors' integrity.
  D. The auditors' confidentiality.
  B. The auditors' objectivity.

• Question 93:

  An internal auditor for a large bank is reviewing the collectability of a loan that is secured by real property. The best evidence of the loan's collectability would be:

  A. A recent independent appraisal of the value of the real property.
  B. A document showing the loan committee's approval of the loan.
  C. The borrower's confirmation of the loan balance.
  D. A properly completed and signed loan application form.
  A. A recent independent appraisal of the value of the real property.

• Question 94:

  Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

  A. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.
  B. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
  C. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.
  D. Payroll personnel add employees and enter employee bank account numbers but process hours only as approved by the human resources department.
  C. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.

• Question 95:

  Which of the following is true regarding a quality assurance and improvement program?

  A. Internal assessments are conducted at least once every five years while external assessments are ongoing.
  B. Internal assessments are conducted by an independent assessor or assessment team from outside the organization.
  C. External assessments are conducted at least once every five years while internal assessments are ongoing.
  D. External assessments are conducted by senior members of the internal audit activity.
  C. External assessments are conducted at least once every five years while internal assessments are ongoing.

• Question 96:

  Which of the following describes a control weakness?

  A. Purchasing procedures are well designed and are followed unless otherwise directed by the purchasing supervisor.
  B. Pre-numbered blank purchase orders are secured within the purchasing department.
  C. Normal operational purchases fall in the range from $500 to $1,000 with two signatures required for purchases over $1,000.
  D. The purchasing agent invests in a publicly traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.
  A. Purchasing procedures are well designed and are followed unless otherwise directed by the purchasing supervisor.

• Question 97:

  Which statement most accurately describes how criteria are established for use by internal auditors in determining whether goals and objectives have been accomplished?

  A. Management is responsible for establishing the criteria.
  B. Internal auditors should use professional standards or government regulations to establish the criteria.
  C. The industry in which a company operates establishes criteria for each member company through benchmarks and best practices for that industry.
  D. Appropriate accounting or auditing standards, including international standards, should be used as the criteria.
  A. Management is responsible for establishing the criteria.

• Question 98:

  Which of the following statements is true regarding an organization's code of ethics?

  A. It should be written with primary consideration given to using a rule-based approach.
  B. It should be of two variations: one applicable internally and one applicable for third parties.
  C. Its operational effectiveness cannot be tested using traditional audit and rating systems such as maturity models.
  D. It should require an annual attestation of compliance with the code of conduct by all employees.
  D. It should require an annual attestation of compliance with the code of conduct by all employees.

• Question 99:

  Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

  A. It considers tolerable deviation rate more effectively than does statistical sampling.
  B. Sampling risk will be accurately quanti ed through non-statistical sampling.
  C. Non-statistical sample results must be projected to the population.
  D. Lesser evidence is required to support a conclusion than for statistical sampling.
  D. Lesser evidence is required to support a conclusion than for statistical sampling.

• Question 100:

  Overall audit efficiency is enhanced between the internal and external audit functions when:

  A. Internal audit coverage is reduced to avoid potential conflicts of interest.
  B. Audits of the same department are conducted at different times.
  C. The internal audit department reviews functions or departments prior to the external audit.
  D. External audit scope is reduced based on the internal audit department's activities.
  D. External audit scope is reduced based on the internal audit department's activities.