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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 381:

  Which of the following represents the most useful function of inventory turnover analysis?

  A. Identifying excess inventory, including obsolete inventory.
  B. Determining the best supplier of raw materials based on cost comparison.
  C. Creating new staffing positions for inventory support.
  D. Developing more effient methods for manufacturing nished products.
  A. Identifying excess inventory, including obsolete inventory.

• Question 382:

  According to IIA guidance, a new internal auditor is expected to possess which of the following competencies?

  A. Technical industry-specific expertise.
  B. Expertise in cybersecurity, an area of increasing risk.
  C. Knowledge of IT risks and controls.
  D. Knowledge of forensic accounting.
  C. Knowledge of IT risks and controls.

• Question 383:

  Which of the following best describes the trait that an internal auditor exercises when considering the extent of work needed to achieve the engagement's objectives?

  A. Independence.
  B. Due professional care.
  C. Objectivity.
  D. Proficiency.
  B. Due professional care.

• Question 384:

  What is expected of internal auditors in regards to due professional care?

  A. Auditors perform assurance services without regard to cost.
  B. Auditors perform assurance services effectively to identify all risks.
  C. Auditors perform assurance services needed to achieve the engagement's objectives.
  D. Auditors perform assurance services to guarantee all significant risks will be addressed.
  C. Auditors perform assurance services needed to achieve the engagement's objectives.

• Question 385:

  According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?

  A. Consulting engagements typically involve four or five parties: the internal audit activity, engagement client, senior management, board, and sometimes the external auditor.
  B. The scope of a consulting engagement is determined by either the engagement supervisor or chief audit executive, and it is nalized prior to beginning fieldwork.
  C. According to the Standards, internal auditors are permitted to carry out certain management functions during a consulting engagement.
  D. A preliminary risk assessment may not be needed for consulting engagements, because the expectations and objectives of the engagement are determined by the engagement client.
  B. The scope of a consulting engagement is determined by either the engagement supervisor or chief audit executive, and it is nalized prior to beginning fieldwork.

• Question 386:

  After several years in the engineering department, an engineer was transferred to the internal audit department. One month later, the new auditor was assigned to an assurance engagement for the engineering department. When the auditor's former engineering supervisor suggested a change in the sample selection method, the auditor consulted with the audit supervisor. They determined that the suggested method would not be as representative and that the original selection method should be used. In this situation, the auditor:

  A. Maintained an independent mental attitude and is therefore objective.
  B. Has subordinated professional judgment, and objectivity is therefore impaired.
  C. Does not have objectivity since the auditor recently transferred from the engineering department.
  D. Does not have independent organizational status since the auditor recently transferred from the engineering department.
  C. Does not have objectivity since the auditor recently transferred from the engineering department.

• Question 387:

  A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud?

  A. Develop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.
  B. Require all submitted claims to be followed by a signed statement by the dentist testifying to the fact that the claimed procedures were performed.
  C. Send confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the insurance provider.
  D. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.
  A. Develop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.

• Question 388:

  Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?

  A. Which sampling methodology to select for testing.
  B. Which fields to examine on each invoice.
  C. Whether an individual expenditure is allowable.
  D. What level of noncompliance is acceptable.
  D. What level of noncompliance is acceptable.

• Question 389:

  The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties. What type of controls would the auditor likely recommend to management to specifically address this problem?

  A. Entity-level.
  B. Preventive.
  C. Directive.
  D. Compensating.
  D. Compensating.

• Question 390:

  Risk assessments can vary in format, but generally include.

  I- A description of identified risks.

  II-. Tests of audit controls.

  III-. A system of rating risks.

  IV-. Sample size identification.

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