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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 481:

  The chief audit executive (CAE) seeks to expand internal audit's assurance services outside of the organization to third party service providers. The CAE wants to ensure internal audit's assurance services are clearly defined. Which of the following would the CAE use to Define internal audit's new assurance services?

  A. Memorandum of understanding.
  B. Internal audit charter.
  C. Client contracts.
  D. Board meetings' minutes.
  B. Internal audit charter.

• Question 482:

  When using a risk assessment model to develop audit plans, it is essential that the chief audit executive take into account the:

  A. Results of the last audit.
  B. Planned visits by the external auditors during the upcoming year.
  C. Recent or expected changes in management direction and objectives.
  D. Dates of future board meetings.
  C. Recent or expected changes in management direction and objectives.

• Question 483:

  An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

  A. Higher inventory turnover.
  B. Higher operating margin.
  C. Lower obsolete stock disposal.
  D. Lower sales volume.
  D. Lower sales volume.

• Question 484:

  At what point in time can an organization conclude that the established organizational governance framework was correctly implemented?

  A. When the internal auditor conducts observations and fieldwork.
  B. When management completes the risk assessment.
  C. When the internal auditor evaluation shows its soundness.
  D. When the organization's goals and objectives are met.
  D. When the organization's goals and objectives are met.

• Question 485:

  Which of the following topics would a chief audit executive most likely include with their report to the board?

  A. The status of labor contract negotiations at the largest manufacturing plant.
  B. A significant level of senior management turnover throughout the organization.
  C. A recent management hire to oversee labor concerns.
  D. Analyses of recent increases in overtime.
  B. A significant level of senior management turnover throughout the organization.

• Question 486:

  A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity

  (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department.

  Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

  A. She may participate, but only after she has completed one year with the IAA.
  B. She may participate, because she did not previously work in the Human Resources Department.
  C. She may participate, but she must be supervised by the auditor in charge.
  D. She may participate for training purposes, to build her knowledge of the IAA.
  B. She may participate, because she did not previously work in the Human Resources Department.

• Question 487:

  An internal auditor discovers that a senior manager has bypassed established procedures for approving large vendor contracts. Which of the following should be the auditor's immediate action?

  A. Report the issue directly to the audit committee.
  B. Notify the organization's legal counsel.
  C. Discuss the matter with the chief audit executive.
  D. Suspend audit work until the situation is clarified.
  C. Discuss the matter with the chief audit executive.

• Question 488:

  Which of the following principles of The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?

  A. Con dentiality.
  B. Objectivity.
  C. Integrity.
  D. Competency.
  B. Objectivity.

• Question 489:

  According to the International Professional Practices Framework, risk is:

  I- De ned as the negative effect of events that are expected to occur.

  II-. Measured in terms of consequences.

  III-. Measured in terms of likelihood.

  A. I only
  B. I and II only
  C. II and III only
  D. I, II, and III.
  C. II and III only

• Question 490:

  Non-statistical sampling does not require which of the following?

  A. The sample to be representative of the population.
  B. The sample to be selected haphazardly.
  C. A smaller sample size than if selected using statistical sampling.
  D. Projecting the results to the population.
  C. A smaller sample size than if selected using statistical sampling.