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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 211:

  Which of the following is most likely to function as a directive control?

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

• Question 212:

  A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed.

  In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:

  A. Review the recommendations in all environmental audit reports.
  B. Discuss with the environmental auditors the results of their reviews.
  C. Periodically carry out a quality assessment of the environmental audit activity.
  D. Include a review of environmental issues in some internal audit engagements.
  C. Periodically carry out a quality assessment of the environmental audit activity.

• Question 213:

  Which of the following best describes the requirements of a Quality Assurance and Improvement Program (QAIP) according to the International Standards for the Professional Practice of Internal Auditing (Standards)?

  A. The QAIP should be conducted at least once every three years, and must be performed by an external assessor.
  B. The QAIP should be conducted on an ongoing basis, and can be completed as a self-assessment.
  C. The QAIP should include both internal assessments performed by staff and external assessments performed by independent, objective individuals.
  D. The QAIP should be performed with scoping limitations established by the board.
  C. The QAIP should include both internal assessments performed by staff and external assessments performed by independent, objective individuals.

• Question 214:

  Which of the following is an example of a transaction-level control?

  A. Human resource policies.
  B. Tone at the top.
  C. Reconciliations of primary accounts.
  D. Inventory counts.
  C. Reconciliations of primary accounts.

• Question 215:

  During an audit of financial contracts, an internal auditor learns that a relative has a substantial loan with the organization. The auditor should:

  A. Exclude the relative's information from the audited work and proceed with the audit engagement.
  B. Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.
  C. Immediately withdraw from the audit engagement.
  D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.
  D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.

• Question 216:

  Which of the following scenarios exempli es a potential internal control weakness?

  A. The same employee who receives cash from customers prepares a prelisting of cash receipts.
  B. The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.
  C. The same employee who restrictively endorses checks received from customers prepares the bank's check deposit slips.
  D. The same employee who makes deposits at the bank prepares the monthly bank reconciliation.
  D. The same employee who makes deposits at the bank prepares the monthly bank reconciliation.

• Question 217:

  According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

  A. The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.
  B. The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.
  C. The use of innovative technology and data analysis techniques.
  D. The extent of work needed to achieve the engagement's objectives.
  D. The extent of work needed to achieve the engagement's objectives.

• Question 218:

  Which of the following statements is true about visual observation during an audit engagement?

  1. Visual observations should not be documented as the facts have not been substantiated.

  2. Complex conditions observed should be verified prior to communicating observations to management.

  3. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.

  4. Visual observation can be used during both preliminary survey and fieldwork stages of the audit engagement.

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

• Question 219:

  According to the IIA Code of Ethics, the deliberate omission of relevant information from an audit report would violate which principle?

  A. Honesty.
  B. Competency.
  C. Responsibility.
  D. Integrity.
  D. Integrity.

• Question 220:

  The primary reason that a bank would maintain a separate compliance function is to:

  A. Better manage perceived high risks.
  B. Strengthen controls over the bank's investments.
  C. Ensure the independence of line and senior management.
  D. Better respond to shareholder expectations.
  A. Better manage perceived high risks.