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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 471:

  In publicly held companies, management often requires the internal audit activity's involvement with quarterly financial statements that are made public and used internally. Which of the following is generally not a reason for such involvement?

  A. Management may be concerned about its reputation in the financial markets.
  B. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
  C. The Standards state that internal auditors should be involved with reviewing quarterly financial statements.
  D. Management may perceive that having quarterly financial information examined by the internal auditors enhances its value for internal decision making.
  C. The Standards state that internal auditors should be involved with reviewing quarterly financial statements.

• Question 472:

  To identify those components of a telecommunications system that present the greatest risk, an internal auditor should first:

  A. Review the open systems interconnect network model.
  B. Identify the network operating costs.
  C. Determine the business purpose of the network.
  D. Map the network software and hardware products into their respective layers.
  C. Determine the business purpose of the network.

• Question 473:

  Which of the following actions would compromise an internal auditor's objectivity?

  A. Preparing bank reconciliations.
  B. Reviewing procedures before they are implemented.
  C. Auditing an activity for which the auditor had responsibility two years ago.
  D. Receiving a promotional pen from a supply available to all employees.
  A. Preparing bank reconciliations.

• Question 474:

  Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?

  A. Internal auditors ensure that the work program is appropriately designed in order to identify all of the risks surrounding the payroll process.
  B. Internal auditors determine whether the policies, procedures, and practices of the payroll department are operating in accordance with relevant laws.
  C. Internal auditors verify whether the board of directors has implemented effective internal controls over the processes used by the payroll department.
  D. Internal auditors ask the organization's risk manager to determine whether the degree of work planned is suficient to determine whether payroll payments were complete and accurate.
  B. Internal auditors determine whether the policies, procedures, and practices of the payroll department are operating in accordance with relevant laws.

• Question 475:

  Which of the following conditions is the most likely indicator of fraud?

  A. Commissions are paid based on verified increases to sales.
  B. Departmental reports are consistently issued in an untimely manner.
  C. A manager regularly assumes subordinates' duties.
  D. Lower earnings occur during the industry's down cycle.
  C. A manager regularly assumes subordinates' duties.

• Question 476:

  A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

  A. Logic test.
  B. Check digits.
  C. Data integrity tests.
  D. Balancing control activities.
  A. Logic test.

• Question 477:

  Which of the following actions should an internal auditor take to exercise due professional care?

  1. Consider the probability of significant noncompliance in each audit engagement.

  2. Weigh the cost of assurance against the benefits.

  3. Perform assurance procedures with suficient care to ensure that all risks are identified.

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

• Question 478:

  Which of the following should be considered in developing a risk and control model for use in an engagement?

  A. The risk and control model should be globally accepted by the profession.
  B. The risk and control model should be strictly adhered to in performing the engagement.
  C. The risk and control model should be tailored to the organization that will be the subject of the engagement.
  D. The risk and control model should be developed individually by the auditor for use on individual audit projects within the planned engagement.
  C. The risk and control model should be tailored to the organization that will be the subject of the engagement.

• Question 479:

  An organization is considering purchasing a new banking software system and has asked the internal audit activity to evaluate the system. An internal auditor assigned to perform the engagement worked at the software company two years ago and is familiar with the system's design strengths and weaknesses. Which of the following is true regarding impairment to the auditor's objectivity?

  A. This situation does not necessitate any action related to the auditor's objectivity.
  B. The auditor should decline to perform the audit because personal conflicts of interest are likely.
  C. The auditor must disclose to the chief audit executive that this situation may impair her objectivity.
  D. The auditor can provide only consulting services, not assurance.
  C. The auditor must disclose to the chief audit executive that this situation may impair her objectivity.

• Question 480:

  Which of the following would best serve to deter unethical behavior and encourage internal auditors to be objective in their work?

  A. A requirement that internal auditors undergo objectivity training periodically.
  B. Periodic communications reminding internal auditors of Standards requirements.
  C. A review of the final audit report by the audit committee.
  D. Ongoing monitoring and periodic internal quality assessments.
  B. Periodic communications reminding internal auditors of Standards requirements.