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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 131:

  Which of the following is the best example of a strategic objective?

  A. Opening a new product line.
  B. Adhering to laws and regulations.
  C. Attaining a specified sales target.
  D. Safeguarding assets.
  A. Opening a new product line.

• Question 132:

  Regarding the chief audit executive (CAE), which of the following is considered an impairment to the independence of the internal audit activity?

  A. The CAE reports administratively to the CEO.
  B. The CAE is asked to submit the liquidation of her travel allowances to human resources for approval.
  C. The CAE's supervisor is responsible for the risk management function.
  D. The CAE is asked to review new procedures before implementation.
  C. The CAE's supervisor is responsible for the risk management function.

• Question 133:

  A manufacturer uses improved linkage between order entry, production, and shipping to reduce raw materials and work-in-process inventory. Which type of fraud will these changes likely reduce?

  A. Payment of fraudulent invoices.
  B. Purchases from a related party.
  C. Theft of resources from inventory.
  D. False reporting of hours worked.
  C. Theft of resources from inventory.

• Question 134:

  An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?

  A. Apply antivirus and patch management software.
  B. Utilize dedicated and encrypted network connections.
  C. Install a software inventory management application.
  D. Utilize secure socket layer encryption.
  C. Install a software inventory management application.

• Question 135:

  An organization's board has approved an expansion plan into a new market. The board acknowledged that if the expansion is not successful, the organization would encounter large monetary losses consisting of legal fees, research and development costs, rent expenses, and labor fees. Which of the following has the board approved?

  A. The risk response.
  B. The risk tolerance.
  C. The residual risk.
  D. The inherent risk.
  B. The risk tolerance.

• Question 136:

  Which of the following steps would not be included in a program of selecting and developing human resources for an internal audit department?

  A. Scheduling periodic meetings with individual auditors, during which the chief audit executive provides counsel regarding each auditor's performance and professional career development.
  B. Establishing an internal review team to assess the auditors' and audit department's compliance with standards, level of audit effectiveness, and compliance with departmental policy.
  C. Developing specific job descriptions for audit staff, audit managers, and other auditing positions.
  D. Establishing in-house training programs and requiring continuing education for audit staff.
  B. Establishing an internal review team to assess the auditors' and audit department's compliance with standards, level of audit effectiveness, and compliance with departmental policy.

• Question 137:

  An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by this employee, would represent a conflict of interest?

  A. Monitoring the allowance for doubtful accounts.
  B. Writing procedures for the handling of duplicate payments.
  C. Signing timekeeping cards for subordinates.
  D. Reviewing shipping documents for accuracy.
  B. Writing procedures for the handling of duplicate payments.

• Question 138:

  Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?

  A. A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.
  B. A staff auditor conducted a test of 85 non-statistical sample items, selected randomly, and 5 are not in compliance with organizational policy.
  C. Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.
  D. A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.
  A. A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.

• Question 139:

  To ensure that due professional care has been taken during an audit engagement, an internal auditor should always:

  A. Ensure that all financial information related to the engagement is included in the audit plan and examined for irregularities.
  B. Document all audit tests completely.
  C. Consider the possibility of noncompliance or irregularities at all times during an engagement.
  D. Notify the audit committee of any noncompliance or irregularity discovered during an engagement.
  C. Consider the possibility of noncompliance or irregularities at all times during an engagement.

• Question 140:

  According to IIA guidance, which of the following activities is appropriate for an internal auditor to perform with regard to the organization's corporate social responsibility (CSR) program?

  1. Determine whether the organization has adequate controls to achieve its CSR objectives.

  2. Facilitate a management self-assessment of CSR controls and results.

  3. Consult on the: project design and implementation for the CSR program.

  4. Exclude CSR-related external risks that are beyond the control of the organization.

  A. 1 and 2 only.
  B. 1, 2 and 3 only.
  C. 2, 3, and 4 only.
  D. 3 and 4 only.
  B. 1, 2 and 3 only.