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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 331:

  The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions. The CAE was an accounting manager for the organization six months ago. How should she respond to the request?

  A. Decline, if it is a consulting engagement, because she recently worked in the organization's accounting department.
  B. Accept, if it is an assurance engagement, as she has been out of the department long enough to not impair objectivity.
  C. Inform the accounting department that the engagement can take place in the future, once she has been removed from accounting for a longer period of time.
  D. Accept, if it is a consulting engagement with agreed-upon scope and services to be provided by the internal audit activity.
  D. Accept, if it is a consulting engagement with agreed-upon scope and services to be provided by the internal audit activity.

• Question 332:

  Which of the following is a weakness of observation as audit evidence?

  A. It cannot be used to test the completeness assertion.
  B. It cannot be used to test the existence assertion.
  C. It cannot be used to test the occurrence assertion.
  D. It cannot be relied upon because the evidence is not persuasive.
  A. It cannot be used to test the completeness assertion.

• Question 333:

  When beginning an engagement to assess the effectiveness of the organization's newly revamped risk management processes, which of the following should internal auditors review first?

  A. Key risk disclosures in the annual report.
  B. Existing risk assessment and identification processes.
  C. Organizational strategy and business plans.
  D. Risk mitigation plans and risk responses.
  B. Existing risk assessment and identification processes.

• Question 334:

  The chief audit executive (CAE) annually develops a budget and resource plan and submits it to the board for approval. This action best ful lls which of the following responsibilities of the CAE?

  A. The responsibility to maintain organizational independence.
  B. The responsibility to perform engagements with due professional care.
  C. The responsibility to communicate corrective action plans to the board.
  D. The responsibility to Define the purpose of the internal audit activity.
  D. The responsibility to Define the purpose of the internal audit activity.

• Question 335:

  Which aspect of the audit function would be most impacted by a lack of coordination between an organization's internal and external auditors?

  A. Responsiveness.
  B. Timeliness.
  C. Effectiveness.
  D. efficiency.
  D. efficiency.

• Question 336:

  Which of the following scenarios would represent the greatest threat to the authority of the internal audit activity (IAA)?

  A. A change was implemented requiring the IAA to report administratively to the organization's chief legal counsel rather than the board.
  B. Responsibility for risk management processes were removed from the IAA and placed under a newly created chief risk officer.
  C. The IAA was denied access to expenditure and budget requirement reports because the reports were considered to be financial administrative matters.
  D. An internal auditor was informed by the chief financial officer that client survey results would be unfavorable unless the auditor changed a finding in the report.
  C. The IAA was denied access to expenditure and budget requirement reports because the reports were considered to be financial administrative matters.

• Question 337:

  What is audit risk?

  A. Internal and external risk factors that exist when there are no controls implemented.
  B. The amount of risk that is reduced through risk management operations.
  C. An incorrect conclusion based on evidence uncovered during an audit.
  D. The risk that remains after management has executed risk management activities.
  C. An incorrect conclusion based on evidence uncovered during an audit.

• Question 338:

  According to IIA guidance, which of the following statements is false regarding continuing professional education for the internal audit activity (IAA)?

  A. Continuing professional education can be obtained through IAA involvement in research projects.
  B. Employers are responsible for ensuring that the continuing professional education needs of the IAA are met.
  C. Completion of self-study courses ful lls IAA continuing professional education requirements.
  D. Specialized education that meets unique organizational needs cannot qualify as IAA professional development.
  D. Specialized education that meets unique organizational needs cannot qualify as IAA professional development.

• Question 339:

  Which of the following controls is not appropriate for sales in a manufacturing organization?

  A. Customers' orders are recorded promptly.
  B. Goods shipped are matched with valid customer orders.
  C. Goods returned are inspected for damage by the receiving department for proper disposition.
  D. Sales department approval is required for credit sales transactions.
  D. Sales department approval is required for credit sales transactions.

• Question 340:

  When reviewing management reports to the board of directors, the internal audit activity should:

  A. Evaluate the process used to prepare the management reports.
  B. Maintain supporting documentation for the management reports.
  C. Tie all financial numbers in the reports to the general ledger.
  D. Compare to prior-period reports for consistency.
  A. Evaluate the process used to prepare the management reports.