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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 451:

  Which of the following best supports the internal audit activity's role in evaluating governance?

  A. Assessing whether the board promotes appropriate ethics and values.
  B. Preparing the organization's code of conduct.
  C. Managing all enterprise risk activities.
  D. Conducting all investigations of employee misconduct.
  A. Assessing whether the board promotes appropriate ethics and values.

• Question 452:

  Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

  A. The risk of collusion between parties.
  B. The risk of falsified reconciliations.
  C. The risk of low-liquidity inventory.
  D. The risk of damages to the inventory.
  B. The risk of falsified reconciliations.

• Question 453:

  An organization's board of directors has decided that the internal audit activity must have greater access to different parts of the organization in order to perform their assurance work effectively. Which of the following areas is the board seeking to improve by making this change?

  A. Internal audit authority.
  B. Internal audit reporting structure.
  C. Internal audit independence and objectivity.
  D. Internal audit interaction with the board.
  C. Internal audit independence and objectivity.

• Question 454:

  An organization is implementing a new cybersecurity policy and has established a committee to ensure stakeholder alignment across the organization's infrastructure, network, and security teams. The head of the committee has asked the chief audit executive if the internal audit activity could play a role in these efforts. According to IIA guidance, which of the following is the most appropriate response?

  A. It is not appropriate for the internal audit activity to play a role because its independence must be protected.
  B. The internal audit activity should not participate because there are no IT auditors on staff.
  C. The internal audit activity is knowledgeable about risk and therefore should prioritize the organization's responses and control activities for the committee.
  D. The internal audit activity may assist the committee and consult with management on the organization's responses and control activities.
  D. The internal audit activity may assist the committee and consult with management on the organization's responses and control activities.

• Question 455:

  According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

  A. The board.
  B. The chief audit executive.
  C. Senior management.
  D. The external auditors.
  B. The chief audit executive.

• Question 456:

  Which of the following internal control weaknesses would an auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?

  A. Purchasing policies have not been updated.
  B. The organization is not taking advantage of quantity discounts available from its suppliers.
  C. Payments for goods received have not been authorized at the appropriate level.
  D. Payments to suppliers are made before goods are received.
  D. Payments to suppliers are made before goods are received.

• Question 457:

  Internal auditors can benefit from a strong relationship with the external auditors because external auditors can:

  A. Provide internal auditors with an independent and knowledgeable viewpoint.
  B. Concur with the internal auditors' reports and thus improve the quality of assurance provided to management.
  C. Increase the effectiveness of internal control sampling techniques.
  D. Assist the internal auditor by providing information obtained from similar audits with other clients.
  A. Provide internal auditors with an independent and knowledgeable viewpoint.

• Question 458:

  Which of the following would best enable an internal audit activity to effectively plan and execute an audit of the control environment?

  A. Reports from previous financial statement audits.
  B. Results from the most recent quality assessment.
  C. A report on the operating effectiveness of financial controls.
  D. Buy-in from senior management or the board.
  D. Buy-in from senior management or the board.

• Question 459:

  The chief audit executive (CAE) scheduled a cybersecurity risk engagement at the board's request. However, the internal auditor with the relevant technical skills resigned shortly before the engagement was to begin. Which of the following is the most effient option for the CAE to complete the engagement?

  A. Defer the engagement until a new technical cybersecurity auditor can be hired.
  B. Use the skills of an audit graduate who studied cybersecurity in college.
  C. Provide intensive training to an existing member of the internal audit activity.
  D. Enlist someone internally from the IT function to support the engagement.
  D. Enlist someone internally from the IT function to support the engagement.

• Question 460:

  The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?

  A. Review notes of questions that arise during the review process must be retained.
  B. Dating and initialing each workpaper provides evidence of review.
  C. Workpaper review allows for staff training and development.
  D. Workpapers may be amended during the review process.
  A. Review notes of questions that arise during the review process must be retained.