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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 201:

  Which of the following statements is true regarding an effective internal audit charter that meets the needs and objectives of the organization?

  A. It undergoes periodic updates by the chief audit executive with input from senior management and approval of the board.
  B. It ensures that both assurance and consulting engagement results are delineated.
  C. It considers the inclusion of management's point of view regarding engagement findings.
  D. It includes an explanation of engagement scope and criteria.
  A. It undergoes periodic updates by the chief audit executive with input from senior management and approval of the board.

• Question 202:

  Which of the following would most likely be considered a red flag for fraud?

  A. An organization lacks a whistleblower hotline for reporting suspicious activity.
  B. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
  C. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
  D. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
  D. An employee with significant personal debt is in charge of handling large wire transfers for the organization.

• Question 203:

  Which fraudulent act is designed primarily to benefit the organization?

  A. Fictitious sale or assignment of assets.
  B. Authorization of payment for hours not worked.
  C. Theft or misappropriation of funds.
  D. Acceptance of bribes or kickbacks.
  A. Fictitious sale or assignment of assets.

• Question 204:

  Which of the following best demonstrates the board of directors' governance over internal control?

  A. The board bears direct responsibility for developing and implementing the internal control system.
  B. The majority of board members are experienced and qualified members of the organization's executive management team.
  C. The board may be assisted by an audit committee, chaired by the chief audit executive.
  D. The board is responsible for succession planning for the CEO and other key members of the executive management team.
  A. The board bears direct responsibility for developing and implementing the internal control system.

• Question 205:

  Which of the following would most likely function as a detective control?

  A. Security dogs.
  B. Alert employees.
  C. Insurance claims.
  D. Cycle counts.
  D. Cycle counts.

• Question 206:

  Which two of the following are preventive controls in a check disbursement process?

  1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.

  2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.

  3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.

  4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

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

• Question 207:

  Manually approved invoices are entered online into the accounting system before they are paid. Which of the following would likely improve the efficiency of the approval process?

  A. Accrue invoices approved for payment at the end of month.
  B. Review the signatures on the invoices prior to payment.
  C. Develop an alternative list of authorized users to approve the invoices.
  D. Use electronic signatures to authorize the payment of invoices.
  D. Use electronic signatures to authorize the payment of invoices.

• Question 208:

  Which of the following should be incorporated in a risk management policy?

  I- Boundaries and limit structures. II-. Requirements for reporting risk. III-. Risk authorities.

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

• Question 209:

  The control environment is primarily influenced by:

  A. The attitude and actions of the board and senior management.
  B. The organization's external audit function.
  C. The volume of internal audit reports issued.
  D. The accounting department's procedures.
  A. The attitude and actions of the board and senior management.

• Question 210:

  An objective for an audit of a medical research corporation is to evaluate management's controls to ensure that timely reports are submitted to sponsors of contracted research projects. In planning the audit to achieve this objective, the auditor should begin by:

  A. Reviewing policies and procedures.
  B. Interviewing a group of research managers.
  C. Observing report preparation in a number of laboratories.
  D. Sending a questionnaire to a sample of research sponsors.
  A. Reviewing policies and procedures.