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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 11:

  Which of the following statements describes impairment to the internal auditor's objectivity?

  A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
  B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.
  C. An internal auditor receives a promotional gift that is available to the organization's employees.
  D. An internal auditor performs an assessment of the operations for which he was recently responsible.
  D. An internal auditor performs an assessment of the operations for which he was recently responsible.

• Question 12:

  The primary objective of risk-based auditing is to assess the:

  A. Economy of controls.
  B. Compliance with controls.
  C. Adequacy of controls.
  D. efficiency of controls.
  C. Adequacy of controls.

• Question 13:

  Which of the following combinations of conditions is most likely a red flag for fraud?

  A. The practice of surprise audits and the implementation of an employee support program.
  B. Hiring an employee with a prior fraud conviction and yearly management review.
  C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.
  D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.
  C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

• Question 14:

  An internal auditor found that his organization did not make a disclosure that is required by law. However, the auditor decided not to raise an audit finding. Which of the following Code of Ethics principles was violated?

  A. Objectivity.
  B. Integrity.
  C. Proficiency.
  D. Con dentiality.
  B. Integrity.

• Question 15:

  An internal auditor obtains spreadsheets created by the finance department of an organization. The internal auditor contacts a third party about the source data that was utilized to create the spreadsheets before going on to perform a ratio analysis and a comparison of budget versus actual data.

  What is the most likely reason that the internal auditor involved a third party before performing further analysis?

  A. To determine if a later re-performance for testing mechanical accuracy would be possible.
  B. To confirm that the spreadsheets could be used as a source of analytic data.
  C. To determine what future usage limitations the spreadsheets might have.
  D. To obtain a reliable verification about the accuracy of the source data.
  D. To obtain a reliable verification about the accuracy of the source data.

• Question 16:

  For a bank handling large amounts of cash, which of the following types of control would be the most effective to use?

  A. Detective controls.
  B. Corrective controls.
  C. Preventive controls.
  D. Directive controls.
  C. Preventive controls.

• Question 17:

  Which of the following strategies by a new chief audit executive would best help ensure that the internal audit activity aligns with The IIA's Mission of Internal Audit?

  A. Read prior audit reports and board communications to identify any key outstanding issues.
  B. Identify all stakeholders for the organization and the associated audit plan for adequate coverage.
  C. Examine the organization's current risk and control framework for effectiveness.
  D. Learn the organization's priorities and objectives through discussions with senior management and the board.
  D. Learn the organization's priorities and objectives through discussions with senior management and the board.

• Question 18:

  Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?

  A. Management may be concerned about its reputation in the financial markets.
  B. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
  C. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
  D. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision
  B. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

• Question 19:

  Which of the following methods is not valid for completing continuing professional education hours?

  A. Attending technical session meetings held by state auditing organizations.
  B. Completing all audit engagements in accordance with the Standards.
  C. Publishing an article on the organization's internal audit department.
  D. Participating in a formal in-house training program.
  B. Completing all audit engagements in accordance with the Standards.

• Question 20:

  During the audit of taxation processes in the organization internal auditors have verified that all employees of the finance department received training on taxation guidelines. The training is mandatory and is automatically assigned via email invitation to all new employees in the department. Which type of controls have the auditors tested?

  A. Directive.
  B. Preventive.
  C. Detective.
  D. Automatic.
  A. Directive.