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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 191:

  Which of the following sources would be most helpful to identify where misappropriation of assets may take place in an organization?

  A. Past audit workpapers.
  B. Fraud risk assessment.
  C. Industry fraud reports.
  D. Interviews with operational management.
  B. Fraud risk assessment.

• Question 192:

  Due to extreme liquid fuel price uctuations, management decided to designate a price below which liquid fuel shall not be sold to customers, but instead shall be pumped into storage tanks. Which of the following risk responses has management selected?

  A. Risk reduction.
  B. Risk transfer.
  C. Risk acceptance.
  D. Risk avoidance.
  D. Risk avoidance.

• Question 193:

  Considering the concepts of organizationwide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?

  A. Transaction-level control.
  B. Management-oversight control.
  C. Governance control.
  D. Process-level control.
  B. Management-oversight control.

• Question 194:

  A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?

  A. Independent assessments.
  B. Continuous monitoring.
  C. Business continuity and backups.
  D. Organizationwide objectives.
  D. Organizationwide objectives.

• Question 195:

  Senior management is eager to assess the organization's risks with regard to electricity sales processes, but the senior management team does not know where to start. How can the internal audit activity assist?

  A. Outsource the identification of best practices for risk management to an external third party.
  B. Perform an audit engagement to identify risk management practices deployed in electricity sales processes.
  C. Recommend reporting the lack of risk management to government authorities and request guidance.
  D. Facilitate a self-assessment workshop with the employees responsible for process execution.
  B. Perform an audit engagement to identify risk management practices deployed in electricity sales processes.

• Question 196:

  Which of the following is an appropriate consideration by the auditor when preparing an engagement program for a human resource audit?

  A. State the work steps in the form of questions.
  B. Use standard audit program for HR from previous years.
  C. Include in the audit program certain audit tests requested by audit client.
  D. Defer preparation of the audit program after the field work.
  C. Include in the audit program certain audit tests requested by audit client.

• Question 197:

  Which type of control is designed to directly mitigate internal and external risks at the organization wide level, furthering the achievement of many overall organizational objectives?

  A. Process-level control.
  B. Entity-level control.
  C. Transaction-level control.
  D. Complementary control.
  B. Entity-level control.

• Question 198:

  Which of the following factors would cause an internal auditor to judge an account balance error to be material?

  A. The error involves an unusual transaction for the organization.
  B. The error pertains to an unverified transaction that is routine.
  C. The error concerns a data input function.
  D. The error involves a large percentage of net income.
  D. The error involves a large percentage of net income.

• Question 199:

  The chief audit executive for an organization has just completed a risk assessment process, identified the areas with the highest risk, and assigned an audit priority to each. Which of the following statements is true and consistent with the

  International Professional Practices Framework?

  I- Items should be ranked in the order of quanti able dollar exposure to the organization.

  II-. The audit priorities should be in order of major control defficiencies.

  III-. The risk assessment, though quanti ed, is the result of professional judgments about both exposures and probability of occurrences.

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

• Question 200:

  In which of the following situations would the organizational independence of an internal audit activity be impaired?

  A. The chief audit executive reports administratively to the CEO.
  B. Scope limitations are imposed on internal audits.
  C. The internal audit activity provides assurance services for an activity for which the engagement supervisor had responsibility within the previous year.
  D. The compensation committee of the board approves the remuneration of the chief audit executive.
  B. Scope limitations are imposed on internal audits.