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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 421:

  All of the following would normally be involved in preparing for and carrying out the internal audit activity's annual plan except:

  A. Establishing policies and procedures for workpapers and referencing.
  B. Providing periodic activity reports to the audit committee on audit engagements in progress.
  C. Assessing the amount of risk in major departments.
  D. Training audit staff on appropriate audit methodologies for addressing any newly identified risks.
  A. Establishing policies and procedures for workpapers and referencing.

• Question 422:

  The internal audit staff lacks the expertise to perform a specific activity when auditing an organization. Which of the following individuals is not an appropriate choice to perform this task?

  A. A consultant from an outside firm.
  B. An expert within the department being audited.
  C. A researcher a liated with a college or university.
  D. A specialist from the staff of a government agency.
  B. An expert within the department being audited.

• Question 423:

  An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.

  A. The auditor notes strong indicators of a specific fraud involving this account.
  B. The company has relatively stable operations which have not changed much over the past year.
  C. The auditor would like to identify large, unusual, or non-recurring transactions during the year.
  D. The operating expenses vary in relation to other operating expenses, but not in relation to revenue.
  A. The auditor notes strong indicators of a specific fraud involving this account.

• Question 424:

  Which of the following should be the primary objective of an audit of an entity's business continuity plan?

  A. Cost of testing and updating the plan.
  B. Delegation of responsibilities for the plan.
  C. Relationship of the plan to risk exposures.
  D. efficiency of the planning procedures.
  C. Relationship of the plan to risk exposures.

• Question 425:

  During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:

  A. Exclude the relative's information from the audited work and proceed with the audit engagement.
  B. Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.
  C. Immediately withdraw from the audit engagement.
  D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.
  D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.

• Question 426:

  Which of the following is the strongest red flag for bribery that is usually associated with the rationalization element of the fraud triangle?

  A. Poor compensation of employees.
  B. Employees' unrestricted access to sales information.
  C. Too much trust in key employees.
  D. Employees living beyond their means.
  D. Employees living beyond their means.

• Question 427:

  Regarding an organization's decision to retain an external audit rm, the chief audit executive (CAE) should:

  A. Work with the organization's chief financial officer to evaluate the external auditor's performance and together make the decision.
  B. Not be involved in this decision process as it would compromise the CAE's objectivity.
  C. Evaluate the external auditor's performance and retain the external auditor if quality and cost criteria are met.
  D. Assist the audit committee by facilitating the development of an appropriate evaluation process.
  D. Assist the audit committee by facilitating the development of an appropriate evaluation process.

• Question 428:

  A mature organization recently made some changes to its existing ethics program by implementing a formal code of conduct as well as frequent ethics training for all employees. Which of the following parties is responsible for oversight of these activities?

  A. The internal audit activity.
  B. The board of directors.
  C. External auditors.
  D. All employees.
  B. The board of directors.

• Question 429:

  Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

  A. Adequate signs are in place to assist in locating safety equipment.
  B. Servers are secured individually to their racks by locks.
  C. Foam re extinguishers are operable to protect against electrical fires.
  D. Swipe card access is required to gain access to the server room.
  A. Adequate signs are in place to assist in locating safety equipment.

• Question 430:

  Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?

  A. Reviewing the number of anonymous hotline allegations against employee complaints.
  B. Surveying employees to determine whether they are aware of the hotline.
  C. Benchmarking the average time to investigate hotline complaints.
  D. Tracking the number of hotline allegations per total number of employees.
  B. Surveying employees to determine whether they are aware of the hotline.