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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 121:

  During an interview with a data-entry clerk in the human resources department, an internal auditor recognizes a potentially significant weakness with a database system used to track employee performance ratings. Which of the following actions should the auditor take after discovering the weakness?

  A. Schedule a series of follow-up interviews with the data-entry clerk.
  B. Avoid either directly or indirectly confronting the data-entry clerk about the system weakness.
  C. Question the data-entry clerk indirectly to help obtain more factual information about the weakness.
  D. Immediately document the weakness and write a report to the data-entry clerk's superior.
  C. Question the data-entry clerk indirectly to help obtain more factual information about the weakness.

• Question 122:

  An organization has developed a model to determine the most profitable rate of production. The organization varies the cost of labor in the model to determine how much the changes affect the optimal production level. Which type of analysis does this scenario demonstrate?

  A. Forecast.
  B. Sensitivity.
  C. Critical path.
  D. Decision.
  B. Sensitivity.

• Question 123:

  Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

  A. Hire a risk consultant.
  B. Implement a hedging strategy.
  C. Maintain a large foreign currency balance.
  D. Insist that customers only pay in a stable currency.
  B. Implement a hedging strategy.

• Question 124:

  Which of the following scenarios represents a control weakness?

  A. The same employee initiates, approves, and records financial transactions.
  B. Segregation of duties is maintained between authorization and recording.
  C. Management reviews all exception reports monthly.
  D. System access rights are reviewed quarterly.
  A. The same employee initiates, approves, and records financial transactions.

• Question 125:

  Which type of objectives can best be described as broad goals that promote the effective and effient use of resources?

  A. Strategic objectives.
  B. Operational objectives.
  C. Reporting objectives.
  D. Compliance objectives.
  B. Operational objectives.

• Question 126:

  Which of the following scenarios provides the most concerning red flag, or indicator of possible fraud?

  A. An employee receives a bonus for perfect attendance.
  B. During the past 18 months, three chief financial officers have left the organization after having been promoted to the position.
  C. The organization does not perform any due diligence research on third-party service providers.
  D. Three competitors are highly profitable but a fourth, equal in size, is approaching bankruptcy limits.
  B. During the past 18 months, three chief financial officers have left the organization after having been promoted to the position.

• Question 127:

  A major difference between enterprise risk management and traditional risk management lies in the narrow focus of traditional risk management on: I- Property and liability risks.

  II-. Risks with insurance solutions.

  III-. Risks impacting organizational objectives.

  A. I and II only
  B. I and III only
  C. II and III only
  D. I, II, and III.
  A. I and II only

• Question 128:

  The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?

  A. The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.
  B. The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.
  C. The CAE should seek suficient funding to increase audit resources to meet the minimum requirements of the Standards.
  D. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.
  D. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.

• Question 129:

  Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to ll and package orders for shipping?

  A. A Bedford analysis of orders lled to average delivery times.
  B. Decision trees rating actual performance against requirements.
  C. Queuing theory to assess potential bottlenecks in the process.
  D. A program evaluation and review technique chart.
  C. Queuing theory to assess potential bottlenecks in the process.

• Question 130:

  The collaborating style for conflict resolution, where the parties promote assertiveness and work together to develop a mutually beneficial solution, is best used in which of the following situations?

  A. Parties are confident of the solution and are ready to defend it.
  B. There is a high level of trust among the parties.
  C. Resolution is time sensitive and a quick decision is necessary.
  D. The issue is more important to one party than the others.
  B. There is a high level of trust among the parties.