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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 441:

  Which of the following definitions best describes enterprise risk management?

  A. Enterprise risk management is narrower than internal control and focuses on managing the risk of loss resulting from external events.
  B. Enterprise risk management is narrower than internal control and focuses on risk mitigation strategies across the enterprise.
  C. Enterprise risk management is broader than internal control and focuses on risk identification and management, and assurance that business objectives will be met.
  D. Enterprise risk management is broader than governance and internal control, and focuses on activities designed to ensure that risks are contained at a level
  C. Enterprise risk management is broader than internal control and focuses on risk identification and management, and assurance that business objectives will be met.

• Question 442:

  The primary role of the internal audit activity in regard to an organization's ethical climate is to:

  A. Participate as chief ethics officer.
  B. Periodically assess the ethical climate.
  C. Utilize surveys to evaluate employee ethics.
  D. Demonstrate ethical behavior.
  B. Periodically assess the ethical climate.

• Question 443:

  In order to save time, an audit manager no longer required that a standard internal control questionnaire be completed for each audit engagement. Does this represent a violation of the Standards?

  A. Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the mandated approach to evaluate controls.
  B. Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the most effient method to do so.
  C. No, because auditors may omit necessary procedures if there is a time constraint, based on audit judgment.
  D. No, because auditors are not required to complete internal control questionnaires on every engagement.
  D. No, because auditors are not required to complete internal control questionnaires on every engagement.

• Question 444:

  Management should be included in the development of the audit plan in order to:

  A. Provide assurance that past audit recommendations have been properly implemented.
  B. Select the audit tests that will be used for each engagement.
  C. Verify that the highest risks are included in the risk-based audit plan.
  D. Guarantee access to the organization's sites and records for audit work.
  C. Verify that the highest risks are included in the risk-based audit plan.

• Question 445:

  Which of the following scenarios best evidences the concept of due professional care?

  A. The organizational chart depicts the chief audit executive reporting functionally to the board and administratively to the CEO.
  B. Members of the audit team report their continuing professional education credits annually to maintain professional certifications.
  C. Members of the internal audit team sign an annual attestation that they understand the internal audit policies.
  D. An internal auditor documents her concern related to scope limitation and being prevented from accessing records required to undertake the audit.
  D. An internal auditor documents her concern related to scope limitation and being prevented from accessing records required to undertake the audit.

• Question 446:

  Which of the following is not true with regard to the internal audit charter?

  A. It defines the authorities and responsibilities of the internal audit activity.
  B. It specifies the minimum resources needed for the internal audit activity.
  C. It provides a basis for evaluating the internal audit activity.
  D. It should be approved by senior management and the board.
  B. It specifies the minimum resources needed for the internal audit activity.

• Question 447:

  Which of the following best defines the role of internal auditing in risk management?

  A. To own and manage all identified risks.
  B. To provide assurance on the effectiveness of risk management processes.
  C. To eliminate all operational risks.
  D. To approve management's risk appetite.
  B. To provide assurance on the effectiveness of risk management processes.

• Question 448:

  A company has entered into a $20,000,000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?

  A. Excessive labor charged to the project.
  B. Poor physical protection of materials and equipment.
  C. Failure to complete the project within budget.
  D. Substitution of inferior materials.
  D. Substitution of inferior materials.

• Question 449:

  During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most

  likely be the reason for the high volume of complaints?

  A. An ineffective customer service department.
  B. Poor controls in the invoice approval processes.
  C. Check tampering by an employee.
  D. Submission of fraudulent expense reports.
  C. Check tampering by an employee.

• Question 450:

  According to IIA guidance, which of the following statements is true with regard to the chief audit executive's (CAE's) responsibility for conducting a self-assessment of the internal audit activity?

  1. The CAE should select an independent reviewer or review team to perform suficient tests of the self-assessment to validate the results.

  2. The CAE should validate results by engaging experienced audit professionals from a separate internal audit activity outside of the organization to reperform all of the tests conducted for the assessment.

  3. The CAE should select independent, nonaudit professionals who are knowledgeable about the organization and the industry in which it operates to assist with performing the self-assessment.

  4. The CAE may consider performing a self-assessment with independent external validation in lieu of performing a full external assessment.

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