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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 281:

  The chief audit executive (CAE) routinely provides activity reports to the board during quarterly board meetings. Senior management has asked to review the CAE's board presentation before each board meeting so that any issues or questions can be discussed beforehand. The CAE should:

  A. Provide the activity reports to senior management as requested and discuss any issues that may require action to be taken.
  B. Not provide activity reports to senior management because such matters are the sole province of the board.
  C. Disclose only those matters in the activity reports that pertain to expenditures and financial budgets of the internal audit activity.
  D. Provide information to senior management that pertains only to completed audit engagements and observations available in published engagement final
  A. Provide the activity reports to senior management as requested and discuss any issues that may require action to be taken.

• Question 282:

  In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

  A. It creates apprehension about the audit engagement.
  B. It involves the engagement client's supervisory personnel in the audit.
  C. It is an uneconomical approach to obtaining information.
  D. It is only useful for audits of distant locations.
  B. It involves the engagement client's supervisory personnel in the audit.

• Question 283:

  A manufacturing organization's multi-step sales and shipping process starts when the organization's headquarters receives the sales order. Headquarters then shares that data with the individual manufacturing facility that compiles the shipment. Finally, the individual manufacturing facility sends the shipments to the customer. Which method should the internal auditor use to document this process in a flowchart?

  A. Trace the entire process, from the receipt of the sales order at headquarters to when the goods are shipped to the customer.
  B. Request a copy of each individual manufacturing facility's flowcharts, speak with facility managers to confirm that they have been updated and then use the information in a flowchart.
  C. Trace the entire process in reverse, beginning with the shipped goods and ending with the receipt of the sales order at headquarters.
  D. Obtain information on how management sets sales prices, find documentation about how the organization approves the change of sales prices, and prepare
  A. Trace the entire process, from the receipt of the sales order at headquarters to when the goods are shipped to the customer.

• Question 284:

  Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

  A. The standard of living of one of the purchasing agents has increased.
  B. The internal control structure has significant weaknesses.
  C. The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
  D. The cost of goods procured seems to be excessive in comparison with previous years.
  C. The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.

• Question 285:

  Which of the following statements pertaining to the relationship between independence and objectivity is accurate?

  A. Independence and objectivity are directly related, and they essentially mean the same thing.
  B. If the internal audit activity is not independent, the internal auditor cannot be objective.
  C. It is easier to measure and implement safeguards to ensure objectivity than it is to ensure independence.
  D. Independence generally relates to conditions that limit the internal auditor's performance, and objectivity relates to a state of mind.
  D. Independence generally relates to conditions that limit the internal auditor's performance, and objectivity relates to a state of mind.

• Question 286:

  The internal audit activity was denied access to expenditure and budget reports because they were considered to be confidential. This situation would result in which of the following limitations of the internal audit activity?

  A. Independence.
  B. Integrity.
  C. Objectivity.
  D. Authority.
  D. Authority.

• Question 287:

  An organization references a customer order with an approved customer file and credit limit before accepting an order. Which type of control does this process exemplify?

  A. Quality control monitoring.
  B. Direct functional management.
  C. Information processing.
  D. Performance indicators.
  C. Information processing.

• Question 288:

  In addition to data protection, which of the following is a control that is typically used by companies to safeguard the privacy rights of their customers?

  I- End-user computing.

  II-. Encryption of data.

  III-. Spyware.

  IV-. Intrusion detection.

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

• Question 289:

  When evaluating control effectiveness, an internal auditor should focus primarily on:

  A. Whether controls reduce residual risk to an acceptable level.
  B. Whether every control is documented in written policies.
  C. Whether management agrees with audit recommendations.
  D. Whether controls are approved by external auditors.
  A. Whether controls reduce residual risk to an acceptable level.

• Question 290:

  Nearing the completion of fieldwork, an internal auditor shared the draft report findings with management prior to the closing meeting. During the closing meeting, management expressed dissatisfaction in that they were not familiar with some of the findings. Management also noted that some aspects of the report seemed confusing. Which of the following competencies appears to have been lacking in this scenario?

  A. Communication.
  B. Business acumen.
  C. Persuasion.
  D. Critical thinking.
  A. Communication.