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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 241:

  In order to provide the most useful information for an organization's risk management decisions, which of the following should be assessed?

  A. Risk levels for future events based on the degree of uncertainty of those events and their cost of mitigation.
  B. Inherent and control risks and their impact on the extent of financial misstatements.
  C. Risk levels of current and future events, their effect on the achievement of the organization's objectives, and their underlying causes.
  D. Risk levels of current and future events, their impact on the organization's mission, and the potential for the elimination of existing risk factors.
  C. Risk levels of current and future events, their effect on the achievement of the organization's objectives, and their underlying causes.

• Question 242:

  During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company's expenses policy. The auditor who discovered the issue considered it a potential fraudulent transaction and informed the chief financial officer (CFO). The CFO dismissed the concern because he did not understand the data analytics test that was performed and the transaction was of a low value. Given this situation, which skills or competencies should this internal auditor seek to improve?

  A. Skills in evaluating the risk of fraud.
  B. Knowledge of key IT risks and controls.
  C. Soft skills such as communication and negotiation.
  D. Knowledge and understanding of the company's expenses policy.
  C. Soft skills such as communication and negotiation.

• Question 243:

  The internal audit activity adds value to the organization primarily by:

  A. Ensuring management follows all audit recommendations.
  B. Improving the effectiveness of risk management, control, and governance processes.
  C. Reporting fraud incidents to external regulators.
  D. Monitoring employee productivity.
  B. Improving the effectiveness of risk management, control, and governance processes.

• Question 244:

  Which of the following would best improve the organization's fraud awareness?

  A. Anti-fraud training for all new hires.
  B. Performing comprehensive background checks.
  C. Annual anti-fraud training.
  D. Regularly posting the fraud hotline phone number.
  C. Annual anti-fraud training.

• Question 245:

  According to IIA guidance, the internal audit activity must be free from interference in which of the following areas in order to maintain organizational independence?

  A. Monitoring resources.
  B. Compensating the chief audit executive.
  C. Determining scope.
  D. Allocating internal costs.
  C. Determining scope.

• Question 246:

  If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violated.

  A. The IIA Code of Ethics.
  B. The Standards.
  C. Both the IIA Code of Ethics and the Standards.
  D. Neither the IIA Code of Ethics nor the Standards.
  D. Neither the IIA Code of Ethics nor the Standards.

• Question 247:

  Reportable audit findings must be:

  I- Documented by facts.

  II-. Supported by relevant evidence.

  III-. Agreed to by management of the audited area.

  IV-. Convincing enough to compel corrective action.

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

• Question 248:

  Why is the concept of residual risk important?

  A. Because residual risk is difficult to measure.
  B. Because residual risk is all of the risk that remains after controls are established.
  C. Because the cost-benefit analysis supporting control design is part of the measure of residual risk.
  D. Because the risk that remains after control design and implementation needs to be acceptable to senior management.
  D. Because the risk that remains after control design and implementation needs to be acceptable to senior management.

• Question 249:

  Which of the following audit activities is within the scope of assurance activities as stated in the International Professional Practices Framework?

  A. Review a make-or-buy decision and report a recommendation to management for approval.
  B. Participate in negotiations for a corporate acquisition.
  C. Assess nancing alternatives for a new generator.
  D. Perform an evaluation of management's planning process.
  D. Perform an evaluation of management's planning process.

• Question 250:

  Which of the following statements, if true, could justify an auditor's decision not to report governance-related control defficiencies to the audit committee?

  A. Management plans to initiate corrective action.
  B. The board of directors has a separate corporate governance committee.
  C. The amounts and the potential risks associated with the defficiencies are not material to the overall organization.
  D. Governance issues are complex and the auditor should rely on management's analysis of the extent of the problem.
  C. The amounts and the potential risks associated with the defficiencies are not material to the overall organization.