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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 321:

  Which of the following statements is correct with regard to risk management?

  A. The board's responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.
  B. The chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.
  C. The total process of risk management, which includes a related system of internal control, is the responsibility of the board.
  D. The finance director is responsible for the overall implementation of the risk management process.
  C. The total process of risk management, which includes a related system of internal control, is the responsibility of the board.

• Question 322:

  An internal audit of an organization's disbursement department revealed that multiple payments were made to legitimate vendors bearing fraudulent banking information belonging to employees in the department. These vendors were initially set up with accurate banking information but were subsequently modified by disbursement officers with access to the vendor management system. Which of the following controls would have likely prevented the fraudulent modi cation of vendors' banking information?

  A. Management periodically reviews and veri es the information in the vendor master file.
  B. Management's approval is required for update to vendors' banking information.
  C. Management randomly audits a sample of payments to verify the accuracy of vendors' banking information.
  D. Management's approval is required before payments can be processed.
  B. Management's approval is required for update to vendors' banking information.

• Question 323:

  An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be.

  A. Noted in the audit workpapers, but the engagement should be carried out as scheduled, with any necessary adjustments made based on the scope limitation.
  B. Communicated to the external auditors so that they can investigate the area in more detail.
  C. Communicated, preferably in writing, to the board.
  D. Communicated to management, stating that the limitation will not be accepted because it would impair the audit activity's independence.
  C. Communicated, preferably in writing, to the board.

• Question 324:

  In order to be organizationally independent, the chief audit executive should report administratively to the [List A] and functionally to the [List B].

  [List A]

  [List B]

  A. Audit committee Board of directors
  B. Chief executive officer Board of directors
  C. Chief executive officer Chief financial officer
  D. Audit committee
  B. Chief executive officer Board of directors

• Question 325:

  A chief audit executive (CAE) is obtaining information required by a regulatory oversight body and discovers a situation that requires management to take immediate corrective action. What is the best course of action for the CAE to take?

  A. Wait until all of the information has been gathered and reported to the oversight body before reporting the situation to management.
  B. Check with legal counsel to determine whether the situation can be reported to management before all information has been submitted to the oversight body.
  C. Report the situation to management immediately.
  D. Schedule an engagement to explore the situation in depth, before reporting to either management or the oversight body.
  C. Report the situation to management immediately.

• Question 326:

  An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict. Which of the following is the most appropriate course of action for the CAE to take?

  A. Replace the auditor with another audit staff member.
  B. Continue with the present auditor, as more than one year has passed.
  C. Withdraw the audit team and outsource the financial audit of the division.
  D. Work with the division's management to resolve the situation.
  A. Replace the auditor with another audit staff member.

• Question 327:

  What is the primary reason a chief audit executive should dedicate time and resources to support continuing professional development of internal audit staff?

  A. To ensure that internal audit staff maintain high overall job satisfaction.
  B. To ensure that internal audit staff acquire continuing professional education credits timely.
  C. To ensure that top risks are mitigated to an acceptable level.
  D. To ensure that internal audit staff have the competency to address high-priority risks.
  B. To ensure that internal audit staff acquire continuing professional education credits timely.

• Question 328:

  The external auditor has recommended that the organization implement a risk management program. The organization's employees have no experience or formal risk management training. Which of the following statements best justi es the decision to use the COSO enterprise risk management framework rather than the ISO 31000 approach?

  A. COSO's principles-based approach provides superior guidance for organizations new to risk management.
  B. COSO will allow a closer liaison with the external auditor.
  C. COSO presents specific guidance on a variety of tools and techniques.
  D. COSO is succinct in length, making it easier to implement.
  A. COSO's principles-based approach provides superior guidance for organizations new to risk management.

• Question 329:

  If management has not established a risk management process, the internal audit activity could.

  A. Take a proactive role that supplements traditional assurance activities.
  B. Identify and mitigate risks to the organization.
  C. Assume responsibility for the management of identified risks.
  D. Assume primary responsibility for determining if adequate and effective processes are in place.
  A. Take a proactive role that supplements traditional assurance activities.

• Question 330:

  Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

  A. The CAE initials and dates every working paper after it has been reviewed.
  B. The CAE completes an engagement working paper checklist.
  C. The CAE prepares a memorandum discussing the results of the working paper review.
  D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.
  D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.