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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 141:

  The chief audit executive's responsibility regarding control processes includes:

  A. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
  B. Overseeing the establishment of internal control processes.
  C. Maintaining the organization's governance processes.
  D. Ensuring that the internal audit activity assesses all control processes annually.
  A. Assisting senior management and the audit committee in the development of an annual assessment about internal control.

• Question 142:

  In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:

  A. Access to and frequency of communications with the board of directors or its audit committee.
  B. The criteria of education and experience considered necessary when lling vacant positions on the audit staff.
  C. The degree to which auditors assume operating responsibilities.
  D. The scope and depth of engagement objectives for the audit engagements included in the review.
  B. The criteria of education and experience considered necessary when lling vacant positions on the audit staff.

• Question 143:

  Management has requested that the internal audit activity perform a consulting engagement to review fraud prevention programs. Which of the following is a Standards requirement to accept and perform the consulting engagement?

  A. The internal audit activity must be free from interference in determining the scope of the consulting engagement.
  B. Internal auditors assigned to the consulting engagement must have no previous responsibility for fraud prevention programs.
  C. The internal audit activity must not provide future assurance services related to fraud prevention programs until at least one year has lapsed.
  D. Internal auditors must incorporate knowledge gained from the consulting engagement into me evaluation or risks and controls in future assurance engagements.
  D. Internal auditors must incorporate knowledge gained from the consulting engagement into me evaluation or risks and controls in future assurance engagements.

• Question 144:

  According to IIA guidance, which of the following conditions would enhance the independence of the internal audit activity?

  A. The organizational culture rewards critical and objective thinking.
  B. The quality of work performed by the internal audit activity is periodically reviewed.
  C. The organization establishes effective governing body oversight.
  D. Audit assignments are rotated among internal audit staff.
  C. The organization establishes effective governing body oversight.

• Question 145:

  Which of the following are appropriate responsibilities of the audit committee in relation to the chief audit executive (CAE)?

  1. Approving the internal audit charter.

  2. Approving decisions regarding the appointment and removal of the CAE.

  3. Approving the risk management strategy for the organization.

  4. Making appropriate inquiries of management and the CAE to determine whether there are inappropriate scope and resource limitations.

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

• Question 146:

  According to IIA guidance, which of the following statements is true?

  A. Risks in IT processes are best mitigated by individual controls.
  B. The overall focus of the framework is on significant controls in all critical IT applications.
  C. IT risks and related controls are operational and best identified using a bottom-up approach.
  D. Control process risks are found at multiple layers of the IT environment.
  D. Control process risks are found at multiple layers of the IT environment.

• Question 147:

  Which of the following is a primary benefit of implementing a governance, risk management, and compliance framework within an organization?

  A. Fewer internal audits.
  B. More effective interviews.
  C. Automated risk management strategy tools.
  D. Reduced assurance costs.
  D. Reduced assurance costs.

• Question 148:

  Which of the following scenarios involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

  A. The CAE fails to ensure internal audit staff receive training annually.
  B. The CAE fails to rotate internal audit staff, resulting in the same internal auditors conducting the same engagements year after year.
  C. The CAE reports directly to the organization's chief financial officer.
  D. The CAE reports directly to the board.
  C. The CAE reports directly to the organization's chief financial officer.

• Question 149:

  Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

  A. Suppliers' reports of over shipments.
  B. Warehouse receiving logs.
  C. Purchase requisitions and purchase orders.
  D. Observation and inspection of inventory.
  B. Warehouse receiving logs.

• Question 150:

  An internal audit of warehouse inventory revealed no material defficiencies. However, management later discovered fraud, which occurred during the period that was audited, and determined that a major control defficiency allowed the fraud to occur. Given management's discovery, which of the following statements is valid?

  A. The internal auditors violated the standard for due professional care because they did not detect the fraud, even though it occurred during the period that was reviewed.
  B. The internal auditors should have had suficient knowledge of fraud to identify red flags indicating possible fraud.
  C. The internal auditors could not have detected the fraud due to collusion among employees in the inventory unit.
  D. The internal auditors are not responsible for considering fraud risk, which is a management responsibility.
  D. The internal auditors are not responsible for considering fraud risk, which is a management responsibility.