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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 261:

  In which of the following circumstances would an internal auditor not need to search for other signs of fraud?

  A. The organization has an unusually high increase in costs.
  B. There are several substantial weaknesses with the internal control structure.
  C. Management institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.
  D. One of the employees seems to have had a dramatic increase in their standard of living.
  C. Management institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.

• Question 262:

  An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor's suspicion?

  A. A much higher bad debt expense as a percentage of sales than that of previous years.
  B. A much higher bad debt expense as a percentage of sales than that of other stores.
  C. A much higher percentage of past-due accounts receivable than that of other stores.
  D. A much higher percentage of past-due accounts receivable than that of previous years.
  B. A much higher bad debt expense as a percentage of sales than that of other stores.

• Question 263:

  Which of the following types of information would an internal auditor expect to find in the supporting documentation for a high-level accounts payable process flowchart?

  A. A copy of the new customer request form.
  B. An overview of the steps for validating invoices.
  C. The number of payments paid before the due date of the invoice.
  D. The payment terms and credit limit of the vendor to be paid.
  B. An overview of the steps for validating invoices.

• Question 264:

  Forty- five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period. Which of the following represents the organization's residual risk for online customer payments due?

  A. $11,250
  B. $25,000
  C. $33,750
  D. $45,000
  A. $11,250

• Question 265:

  Which of the following is a consulting service the internal audit activity can perform with respect to the organization's risk management?

  A. Delivering assurance on the risk management system.
  B. Facilitating risk assessment workshops.
  C. Evaluating principal risk reporting.
  D. Deciding on the appropriate risk response.
  B. Facilitating risk assessment workshops.

• Question 266:

  Which of the following should play a leading role in overseeing the ethical atmosphere of an organization?

  A. Internal audit activity.
  B. Operating management.
  C. Senior management.
  D. Board of directors.
  D. Board of directors.

• Question 267:

  Which of the following controls within a spreadsheet would address the risk of logic errors?

  1. The spreadsheet contains formulas that foot and cross-foot data.

  2. The spreadsheet is locked to protect cell formulas from being inadvertently changed.

  3. Spreadsheets are included in nightly backup processes.

  4. Check-in and check-out software is used to manage version control.

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

• Question 268:

  The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?

  I- Board of directors.

  II-. Senior management.

  III-. Shareholders.

  IV-. External auditors.

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

• Question 269:

  The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control defficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?

  A. Intimidation threats may compromise the auditor's objectivity due to multiple negative audit reports completed by the auditor.
  B. The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity's independence.
  C. A negative cognitive bias may be in place that affects the employee's objectivity due to the recent audits with uncorrected control defficiencies.
  D. The auditor may have formed a cultural bias, as the department under review is in the auditor's geographic area.
  B. The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity's independence.

• Question 270:

  Due to urgent requests from management, a busy internal audit activity nds that it can no longer meet all of its commitments contained in the annual audit plan. The best course of action for the chief audit executive to take would be to:

  A. Continue with the plan and seek opportunities to adjust priorities and reallocate resources.
  B. Advise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.
  C. Advise the board and senior management and request a reassessment of the plan.
  D. Advise the board immediately and seek their support for additional resources to meet the needs of the plan.
  C. Advise the board and senior management and request a reassessment of the plan.