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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 431:

  A manufacturing organization receives all direct materials for nished goods production. Which of the following is the strongest preventive control for lapses in quality assurance?

  A. Identifying and rejecting completed products that are not up to quality and standard specifications.
  B. Electronically measuring the materials and components according to specifications prior to manufacturing.
  C. Examining partially assembled nished products to ensure that the manufacturing process is working correctly.
  D. Manually inspecting received supplier materials to ensure appropriate quantities and quality.
  B. Electronically measuring the materials and components according to specifications prior to manufacturing.

• Question 432:

  Which of the following would be an appropriate role for the internal audit activity to undertake in an organization's risk management process?

  A. Setting the risk tolerance.
  B. Accepting risk on behalf of the organization.
  C. Creating and enforcing risk management processes.
  D. Aiding in identifying and evaluating risk.
  D. Aiding in identifying and evaluating risk.

• Question 433:

  Which of the following are components of the COSO enterprise risk management framework?

  1. Objective setting.

  2. External environment.

  3. Data collection.

  4. Control activities.

  A. 1 and 3 only
  B. 1 and 4 only
  C. 2 and 3 only
  D. 2 and 4 only
  B. 1 and 4 only

• Question 434:

  This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline. Which of the following would be the best course of action for the CAE to take?

  A. Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.
  B. Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.
  C. Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.
  D. Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the
  C. Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.

• Question 435:

  An internal auditor is assessing the effectiveness of the organization's risk management practices. She checks to see whether risk management is an integral part of decision making and whether risk management is transparent, responsive to change, and addresses uncertainty. According to IIA guidance on risk management frameworks, which of the following approaches is the auditor most likely using?

  A. Maturity model approach.
  B. Process element approach.
  C. Key principles approach.
  D. Key performance indicators approach.
  A. Maturity model approach.

• Question 436:

  Which of the following would best assist the internal audit activity in assessing whether an organization's responses to risk are aligned with its risk appetite?

  A. Analyzing the results of successful testing of controls and monitoring procedures implemented by management.
  B. Determining that there are no gaps between the internal auditors' risk assessment and the risk assessment performed by the organization.
  C. Obtaining evidence that employees throughout the organization are aware of the organization's risk appetite.
  D. Verifying that previously identified organizational risks were documented in board meeting minutes.
  B. Determining that there are no gaps between the internal auditors' risk assessment and the risk assessment performed by the organization.

• Question 437:

  Which of the following tests would most likely help discover a ctitious invoice?

  A. Compare vendor addresses to employee addresses.
  B. Match cancelled checks to invoices.
  C. Search for duplicate payment amounts.
  D. Check employee bank records against invoice amounts.
  B. Match cancelled checks to invoices.

• Question 438:

  Which of the following factors affects the control risk of a company?

  A. Potential problems like technological obsolescence.
  B. Unusual pressures on management.
  C. Complex accounts that require expert valuations.
  D. Segregation of duties.
  D. Segregation of duties.

• Question 439:

  What is an appropriate first step in an internal auditor's fraud risk assessment to evaluate how the organization manages such risk?

  A. Develop preventive and detective controls.
  B. Identify potential fraud scenarios.
  C. Assess the impact and likelihood of fraud risks.
  D. Determine fraud risk responses.
  B. Identify potential fraud scenarios.

• Question 440:

  When internal auditors perform consulting services that add value and improve an organization's operations, these services:

  A. Impair the internal auditors' objectivity with respect to an assurance service involving the same engagement client.
  B. Would preclude the achievement of assurance from the consulting engagement.
  C. Should be consistent with the internal audit activity's empowerment reflected in the charter.
  D. Impose no responsibility to communicate information other than to the engagement client.
  C. Should be consistent with the internal audit activity's empowerment reflected in the charter.