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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 181:

  Which of the following best illustrates the principle of due professional care?

  A. The internal audit activity uses key performance indicators for all staff members after all audit engagements.
  B. The internal auditors provide assurance to third parties indicating that their work was properly supervised.
  C. The internal auditors demonstrate they have an understanding of engagement objectives and scope.
  D. The internal auditors are heavily involved in training and development to enhance their skills.
  C. The internal auditors demonstrate they have an understanding of engagement objectives and scope.

• Question 182:

  What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?

  A. Detailed objectives for internal audit engagements.
  B. Con rmation that past audit recommendations have been implemented.
  C. Evaluation of the adequacy of internal audit policies and procedures.
  D. Performance appraisals of the internal audit staff.
  C. Evaluation of the adequacy of internal audit policies and procedures.

• Question 183:

  Which of the following is a greater consideration for internal auditors when they are performing a consulting engagement than when they are performing an assurance engagement?

  A. The relative complexity of the engagement.
  B. The cost of the engagement relative to its benefits.
  C. The extent of work needed to achieve the engagement's objective.
  D. The needs and expectations of the engagement client.
  D. The needs and expectations of the engagement client.

• Question 184:

  Which of the following is an appropriate role for the board in governance?

  A. Preparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest.
  B. Ensuring that financial statements are understandable, transparent, and reliable.
  C. Assisting the internal audit activity in performing annual reviews of governance.
  D. Working with the organization's attorneys to develop a strategy regarding current litigation, pending litigation, or regulatory proceedings governance.
  B. Ensuring that financial statements are understandable, transparent, and reliable.

• Question 185:

  Which of the following would provide the best assessment of an organization's ethical climate?

  A. Number of years that directors have been appointed to the board.
  B. Evidence of training provided to the board of directors on ethical issues.
  C. Clarity and consistency of consequences imposed by the board of directors for ethical violations.
  D. Frequency of fraud reported and results of subsequent investigations.
  C. Clarity and consistency of consequences imposed by the board of directors for ethical violations.

• Question 186:

  According to the International Professional Practices Framework, internal auditors should possess which of the following competencies?

  I- Proficiency in applying internal auditing standards, procedures, and techniques.

  II-. Proficiency in accounting principles and techniques.

  III-. An understanding of management principles.

  IV-. An understanding of the fundamentals of economics, commercial law, taxation, nance, and quantitative methods.

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

• Question 187:

  An internal auditor wants to use ratio analysis to examine efficiencies in an organization's accounting department. Which of the following statements identifies a weakness of ratio analysis that should be considered by the auditor?

  A. It requires a substantial investment of money.
  B. It is only helpful for making comparisons across industries.
  C. Computer software is required in order to draw conclusions from the data.
  D. It utilizes financial information that may not have been checked for validity and reliability.
  D. It utilizes financial information that may not have been checked for validity and reliability.

• Question 188:

  Which of the following actions would best help the internal audit activity promote continuous improvement in control effectiveness within the organization?

  A. Determining whether management measures and monitors the costs and benefits of controls.
  B. Providing training on controls and ongoing self-monitoring processes.
  C. Developing flowcharts to obtain information about control design adequacy.
  D. Identifying objectives and the risks involved in achieving them.
  B. Providing training on controls and ongoing self-monitoring processes.

• Question 189:

  Which of the following best describes how the increased use of computerization may impact an auditor's assessment of the risk of fraud?

  A. Access to assets may be available to information systems personnel as well as to computer users.
  B. Computer controls are generally less effective than human review.
  C. Overrides of key controls may require less collaboration.
  D. Audit trails are less effective.
  A. Access to assets may be available to information systems personnel as well as to computer users.

• Question 190:

  Which of the following statements is true regarding how the scope of a consulting engagement should be established?

  A. The engagement client should be able to determine the scope to be applied to the engagement.
  B. The internal auditor should establish a scope that does not impair her objectivity.
  C. Any attempts by the engagement client to limit the scope should be considered a scope limitation.
  D. The scope should include reviewing the effectiveness of the internal control environment.
  A. The engagement client should be able to determine the scope to be applied to the engagement.