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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 361:

  Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales reports by division management?

  I- Hire a new internal auditor who has fraud investigation credentials.

  II-. Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with, but independent of, sales.

  III-. Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.

  IV-. Ask the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

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

• Question 362:

  A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store's assistant manager is responsible for checking the server for downloads and running the program that updates the store's price file at the authorized price update time. In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:

  A. Decrease the risk that customers will be undercharged consistently for sales items.
  B. Decrease the risk that item prices will sometimes be inaccurate.
  C. Increase the risk that customers will be undercharged consistently for sales items.
  D. Increase the risk that item prices will sometimes be inaccurate.
  D. Increase the risk that item prices will sometimes be inaccurate.

• Question 363:

  According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?

  I- The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.

  II-. Treasury management has not instituted any risk management policies.

  III-. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

  IV-. The external auditors have indicated some difficulties in obtaining account confirmations.

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

• Question 364:

  Which of the following corporate travel policies is least likely to be cost-effective?

  A. Negotiating corporate agreements with hotels, airlines, and car rental firms.
  B. Tracking credits for canceled airline reservations.
  C. Selecting the least expensive airline travel available, without regard to total travel time and distance.
  D. Traveling to facilities in tourist areas during the off-season when possible.
  C. Selecting the least expensive airline travel available, without regard to total travel time and distance.

• Question 365:

  Two individuals are being considered for an audit team that is to perform a highly technical review. Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?

  I- Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.

  II-. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff.

  Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.

  A. I only
  B. II only
  C. Both I and II.
  D. Neither I nor II.
  D. Neither I nor II.

• Question 366:

  When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

  A. Impact of and exposure to fraud.
  B. Existence of evidence of fraud.
  C. Organizational structure.
  D. Management's risk appetite.
  A. Impact of and exposure to fraud.

• Question 367:

  Allegations have been made that an organization's share price has been manipulated. Which of the following would provide an internal auditor with the most objective evidence in this case?

  A. Major shareholders of the organization.
  B. Large customers of the organization.
  C. Former members of management.
  D. Former financial consultants.
  D. Former financial consultants.

• Question 368:

  A chief audit executive (CAE) is concerned that the internal audit activity is not receiving adequate training and continuing education. Which of the following approaches should the CAE take?

  A. Implement a uniform professional development plan for the internal audit activity.
  B. Create a formal development agreement with each individual staff auditor.
  C. Require each internal auditor to obtain the same professional certifications.
  D. Require training and developmental activities that are sponsored by The IIA.
  A. Implement a uniform professional development plan for the internal audit activity.

• Question 369:

  What would a chief audit executive most likely recommend that an internal auditor do to prepare for an increased demand in advisory services?

  A. Participate in continuing professional development activities, such as training courses or rotations into other business units.
  B. Review records from prior engagements to determine how best to align the current engagement activities with prior activities.
  C. Expand the scope of every future internal audit activity to all parts of the organization, rather than only the departments identified in the activity's charter.
  D. Specialize in one specific aspect of internal auditing, such as risk assessment or information technology controls.
  A. Participate in continuing professional development activities, such as training courses or rotations into other business units.

• Question 370:

  While conducting fieldwork, an internal auditor decides to utilize standard operating procedure (SOP) questionnaires to gather information about a human resources department. Which of the following is an advantage of this method?

  A. SOP questionnaires verify that a department is effient and effective.
  B. SOP questionnaires generally do not need to be cleared by management of the audited department.
  C. SOP questionnaires are useful in identifying discrepancies and educating clients.
  D. SOP questionnaires are the most comprehensive technique for data gathering in fieldwork.
  C. SOP questionnaires are useful in identifying discrepancies and educating clients.