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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 251:

  During engagement planning, an internal auditor determines that the cost of a certain test outweighs the benefit that can be expected from the results. He determines that this test can be removed from the audit work program. Which of the following did the internal auditor best demonstrate?

  A. Due professional care.
  B. Individual objectivity.
  C. Proficiency.
  D. Internal assessment.
  A. Due professional care.

• Question 252:

  In a manufacturing company, which department would be the internal audit activity's most reliable source of information on the controls over minimizing defective goods?

  A. Manufacturing.
  B. Quality control.
  C. Research and development.
  D. Inventory management.
  B. Quality control.

• Question 253:

  While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor's findings most likely indicate?

  A. Employee collusion with customer organizations.
  B. Improper asset valuation.
  C. Inventory theft.
  D. Fictitious revenues.
  D. Fictitious revenues.

• Question 254:

  Which of the following are core responsibilities to be included in the internal audit charter?

  1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.

  2. Determine the adequacy and effectiveness of the organizations systems of internal accounting and operating controls.

  3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.

  4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

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

• Question 255:

  An effective risk management process primarily helps management to:

  A. Identify, assess, and respond to potential events that may affect the achievement of objectives.
  B. Eliminate all operational uncertainties.
  C. Ensure 100% compliance with corporate policies.
  D. Guarantee profitability in all business units.
  A. Identify, assess, and respond to potential events that may affect the achievement of objectives.

• Question 256:

  An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by the auditor, would represent a conflict of interest?

  A. Monitoring the allowance for doubtful accounts.
  B. Writing procedures for the handling of duplicate payments.
  C. Signing timekeeping cards for subordinates.
  D. Reviewing shipping documents for accuracy.
  B. Writing procedures for the handling of duplicate payments.

• Question 257:

  The chief audit executive (CAE) planned an in-person group training to help internal auditors perform onsite inspections of an automobile manufacturing facility. The training would have allowed the auditors to better understand the production of the organization's automobiles. However, a global health crisis has impacted the training by prohibiting in-person contact at the facility.

  Which of the following could the CAE use to provide auditors with a better understanding of the organization's production process?

  A. A general web-based training on auditing manufacturing processes.
  B. Self-study courses on the industry's production practices.
  C. Industry publications that discuss production methods.
  D. A virtual meeting with management that explains the production of automobiles.
  D. A virtual meeting with management that explains the production of automobiles.

• Question 258:

  Click the Exhibit.

  

  Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:

  Day 1 Day 2 Planning the audit 2 hours 3 hours Conducting the engagement 1 hour 1 hour Writing the audit report 2 hours 4 hours

  Which of the following graphs depicts the data accurately?

  A. Graph A only
  B. Graph B only
  C. Both A and B.
  D. Neither A nor B.
  C. Both A and B.

• Question 259:

  An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?

  A. Speak to the payroll manager so he may investigate the auditor's observations.
  B. Continue to investigate the payments to confirm the accuracy of the observations, and determine whether further fraudulent payments have been made.
  C. Stop the audit and report the findings to senior management immediately.
  D. Escalate the concern to the engagement supervisor.
  B. Continue to investigate the payments to confirm the accuracy of the observations, and determine whether further fraudulent payments have been made.

• Question 260:

  An internal quality assessment of the internal audit activity should provide the chief audit executive with.

  A. Recommendations for improvement.
  B. Objectives for internal audit engagements.
  C. Con rmation of action on past audit recommendations.
  D. Appraisals of internal audit staff performance.
  A. Recommendations for improvement.