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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 301:

  A company is being investigated for in ating its sales with the help of third-party service providers who are family relatives of the chief operating officer. Which of the following internal audit services would have been most effective in detecting this situation?

  A. A forensic examination of sales transactions.
  B. An independent review of financial statements.
  C. A review of vendor onboarding controls.
  D. Participation in approval of transactions with related parties.
  A. A forensic examination of sales transactions.

• Question 302:

  According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

  A. The relative complexity, materiality, or signi cance of matters to which assurance procedures are applied.
  B. The extent of assurance services necessary to ensure that all risks are identified.
  C. The cost of providing the assurance services in relation to potential benefits.
  D. The probability of significant errors, irregularities or instances of noncompliance.
  B. The extent of assurance services necessary to ensure that all risks are identified.

• Question 303:

  According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?

  A. Relevant risk information is captured and communicated in a periodic manner to management.
  B. Risk management processes are monitored through an annual assessment.
  C. Risk responses align with the organization's risk appetite.
  D. Strategic risks with low residual values are continuously monitored.
  C. Risk responses align with the organization's risk appetite.

• Question 304:

  The chief audit executive (CAE) wants to ensure that there are suficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

  A. Con rm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.
  B. Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.
  C. Con rm budget; review existing resources; obtain any new resources required; confirm new audit plan.
  D. Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.
  A. Con rm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.

• Question 305:

  A chief audit executive (CAE) recruited a few new internal auditors to reduce the resource gaps identified in this year's internal audit plan. One of the new recruits has several years of experience with the organization. Ten months ago, she served as a senior supervisor in the finance department. However, for the past 10 months, she has been helping the organization with implementing a new IT system. What approach should the CAE take for the upcoming financial statement controls audit?

  A. Assign the new auditor to assist with conducting the fieldwork, but ensure that her work is reviewed by the CAE.
  B. Assign the new auditor to assist with developing the audit program, but ensure that the audit program is executed by other audit staff.
  C. Ensure that the new auditor's previous manager, and other close former coworkers, are excused during the audit.
  D. Ensure that the new auditor is responsible only for the supervisory review, but not the execution of the audit field work.
  B. Assign the new auditor to assist with developing the audit program, but ensure that the audit program is executed by other audit staff.

• Question 306:

  Which of the following would be most helpful to measure whether an internal audit activity successfully provides risk-based assurance?

  A. Percentage of highly significant risks covered by internal audit plan.
  B. Percentage of previously unknown risks identified per engagement.
  C. Percentage of internal audit staff skilled in alignment with the organization's structure and key risks.
  D. Percentage of observations made in assurance engagements compared to advisory engagements.
  A. Percentage of highly significant risks covered by internal audit plan.

• Question 307:

  Which of the following would be considered a primary control to reduce the risk associated with setting up duplicate vendors?

  A. Receipt of a signed and approved vendor setup form.
  B. Segregation of duties between setting up vendors and making vendor payments.
  C. System validation and edit checks on vendor identification number.
  D. A vendor setup policy and procedure.
  C. System validation and edit checks on vendor identification number.

• Question 308:

  According to the Standards, a review team must express an opinion on which of the following when performing an external assessment of an internal audit activity?

  1. Conformance with the Standards and IIA Code of Ethics.

  2. Effectiveness of continuous improvement activities.

  3. Feedback from internal audit customers and other stakeholder groups.

  4. efficiency and effectiveness of the internal audit activity's administration processes.

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

• Question 309:

  Which of the following is not an appropriate activity for internal auditors to perform?

  A. Recommend management seek a consulting firm to advise on outsourcing.
  B. Highlight matters that require management's attention.
  C. Implement solutions for specific organizational problems.
  D. Accumulate data, obtain varying views, and report information to senior management.
  C. Implement solutions for specific organizational problems.

• Question 310:

  Which of the following is a benefit from reduced testing during a particular phase of an audit engagement?

  A. The size of the internal audit activity can be reduced.
  B. There is less concern about assessing inherent risk.
  C. The level of planned audit risk is lowered.
  D. Additional audit hours are available for pursuing other engagement objectives.
  D. Additional audit hours are available for pursuing other engagement objectives.