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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 351:

  Which of the following internal auditor attributes are affected by a conflict of interest?

  A. Independence and authority.
  B. Authority and proficiency.
  C. Independence and objectivity.
  D. Objectivity and due professional care.
  C. Independence and objectivity.

• Question 352:

  During an audit of an organization's accounts payable area, an internal auditor identified anomalies in the information examined that may indicate potential fraud. Which test should the auditor perform first to verify this?

  A. Verify the completeness and integrity of the data being analyzed.
  B. Identify duplicated organizational transactions.
  C. Analyze all transactions within the targeted area.
  D. Check control totals that have may have been falsified.
  A. Verify the completeness and integrity of the data being analyzed.

• Question 353:

  Which of the following is the best method for testing the accuracy of a computer program's calculation of shipping charges?

  A. Use either test data or parallel simula-tion to test the computer program.
  B. Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.
  C. Select transactions from invoices with shipping charges using difference estimation.
  D. Select transactions from invoices with shipping charges using discovery sampling.
  A. Use either test data or parallel simula-tion to test the computer program.

• Question 354:

  Which of the following is true regarding the auditing of soft controls?

  A. Soft controls should not be audited due to subjectivity issues.
  B. There are no effective tools to use for audits of soft controls.
  C. Traditional testing is less suitable for soft controls assessment.
  D. Management input is the best source for assessment of soft controls.
  C. Traditional testing is less suitable for soft controls assessment.

• Question 355:

  An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

  A. Risk identification.
  B. Risk appetite.
  C. Risk capacity.
  D. Risk tolerance.
  D. Risk tolerance.

• Question 356:

  Which of the following statements best describes the difference between inherent risk and residual risk?

  A. Inherent risk considers controls; residual risk ignores them.
  B. Residual risk remains after management responses and controls are applied.
  C. Inherent risk arises from fraud; residual risk from error.
  D. Residual risk applies only to financial reporting.
  B. Residual risk remains after management responses and controls are applied.

• Question 357:

  An internal auditor is nalizing an audit report on the effectiveness of the organization's overall system of internal control. Several audit tests were performed, and the only issue identified was that the CEO frequently asks employees to make exceptions or bypass the organization's standard written policies and procedures. Which of the following conclusions is most appropriate for the auditor to report?

  A. The auditor should indicate that the system of internal control is not effective.
  B. The auditor should indicate that the system of internal control is generally effective, except for the minor issue identified.
  C. The auditor should indicate that the system of internal control is effective.
  D. The auditor cannot express a conclusive opinion in the audit report.
  A. The auditor should indicate that the system of internal control is not effective.

• Question 358:

  An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

  A. The inherent risk will be mitigated to a level lower than the residual risk.
  B. The inherent risk will be reduced to an acceptable level.
  C. The residual risk will be reduced to an acceptable level.
  D. The residual risk will be eliminated.
  C. The residual risk will be reduced to an acceptable level.

• Question 359:

  An internal audit team is reviewing the effectiveness of an organization's climate change initiative. It has been brought to the engagement supervisor's attention that an auditor on the team has criticized the organization's initiative on social media. The auditor's social media posts could raise concerns about the internal auditor's objectivity during the engagement. Which of the following best describes the threat to objectivity in this situation?

  A. Intimidation.
  B. Cultural bias.
  C. Advocacy.
  D. Economic interest.
  C. Advocacy.

• Question 360:

  Which of the following statements about risk assessment is true?

  A. Risk assessment focuses on the quantitative evaluation of exposures.
  B. Risk assessment evaluates risk both on an inherent and residual basis.
  C. Risk assessment determines the organization's tolerance for exposure.
  D. Risk assessment is the amount of inherent risk in a separately identifiable business entity.
  B. Risk assessment evaluates risk both on an inherent and residual basis.