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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 411:

  An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?

  A. Credit memos issued after year end for goods shipped before year end.
  B. Evidence of returned goods in the shipping and receiving area.
  C. An unusual number of customer complaints.
  D. The results of a complete physical inventory taken at year end.
  C. An unusual number of customer complaints.

• Question 412:

  Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?

  A. Internal audit designs and implements the organization's controls to help manage risk.
  B. Internal audit sets the organization's risk tolerance and promotes awareness throughout the organization.
  C. Internal audit assesses whether the organization's risk management processes are effective.
  D. Internal audit is responsible for safeguarding the organization's assets and preventing loss from occurring.
  C. Internal audit assesses whether the organization's risk management processes are effective.

• Question 413:

  Which of the following describes the most appropriate match between a potential temporary guest auditor candidate and an upcoming audit assignment?

  A. A purchasing manager with two years of prior audit experience in public practice to lead a contracts management audit.
  B. A communications officer who worked in the marketing department during the last six months to conduct a customer loyalty program audit.
  C. A manager of social responsibility who has a nursing background to participate in a health and safety audit for the corporate office and plant facilities.
  D. An accounting manager who discovered and reported fraud committed by a payables clerk to conduct a performance audit or accounts payable.
  C. A manager of social responsibility who has a nursing background to participate in a health and safety audit for the corporate office and plant facilities.

• Question 414:

  It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

  A. The cost-benefit relationship of planned audits.
  B. Proficiency needed to carry out engagements.
  C. Achievement of the objectives of internal control.
  D. Quantity of the audits performed.
  B. Proficiency needed to carry out engagements.

• Question 415:

  Which of the following best contributes to the effectiveness of the internal audit activity in an organization?

  A. Appropriate terms of internal audit scope and responsibility in the charter.
  B. Appropriate compliance coverage in the annual audit plan.
  C. Regular review of the audit charter by management.
  D. Assurance of internal audit objectivity by the board.
  D. Assurance of internal audit objectivity by the board.

• Question 416:

  Which of the following is the most effective approach for the chief audit executive to determine whether internal auditors demonstrate integrity?

  A. Keep track of the number of times auditors report issues to their engagement supervisors during fieldwork.
  B. Review the auditors' documented work and track the number of errors or omissions.
  C. Review post-engagement survey responses from audit clients.
  D. Request regular reports from engagement supervisors regarding whether audit team members completed all audit steps satisfactorily.
  D. Request regular reports from engagement supervisors regarding whether audit team members completed all audit steps satisfactorily.

• Question 417:

  Which of the following is an example of the chief audit executive (CAE) demonstrating due professional care?

  A. The CAE relies on CAEs in other organizations to understand how due professional care should be executed in her internal audit activity.
  B. The CAE meets with the board of directors on a quarterly basis to provide a status update.
  C. The CAE assesses the audit staff's knowledge and skills annually to determine whether additional resources are needed to fulfill the internal audit plan.
  D. The CAE provides absolute assurance to line management during each internal audit engagement.
  C. The CAE assesses the audit staff's knowledge and skills annually to determine whether additional resources are needed to fulfill the internal audit plan.

• Question 418:

  Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

  A. Content analysis.
  B. Sampling.
  C. Evaluation synthesis.
  D. Modeling.
  D. Modeling.

• Question 419:

  One of the goals of the finance department is to ensure payments are made to designated receivers only. For that purpose, the following controls are established:

  1. The first clerk enters data to initiate a payment transaction to the bank.

  2. The second clerk compares the payment data entered with the original invoice and ap-proves the disbursement.

  3. The third clerk prints bank statements weekly and compares them to invoices processed. What should the internal auditor conclude?

  A. The goal is achieved, because segregation of duties is established in the payment process.
  B. Unauthorized payments can be prevented due to reviews conducted by the third clerk.
  C. There seems to be a lack of controls in the invoice authorization process.
  D. The controls between the first and second clerk need to be strengthened.
  C. There seems to be a lack of controls in the invoice authorization process.

• Question 420:

  The chief audit executive is revising policies relating to independence and objectivity of the internal audit activity. Which of the following would be a part of the revised policies document?

  A. Any auditor that received high-value gifts from an audit client must report it to their supervisor.
  B. Any auditor that received gifts of low-value promotional items from an audit client must report it to their supervisor.
  C. An auditor does not need to complete an annual conflict of interest form unless the auditor's independence status has changed.
  D. An auditor may provide consulting services relating to operations for which they had previous responsibilities.
  D. An auditor may provide consulting services relating to operations for which they had previous responsibilities.