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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 501:

  An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

  A. Management will be able to reduce inherent risk because they will have a better understanding of risk.
  B. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
  C. Stakeholders will have more assurance that the risks are assessed consistently.
  D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
  C. Stakeholders will have more assurance that the risks are assessed consistently.

• Question 502:

  If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

  A. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.
  B. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.
  C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.
  D. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.
  C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

• Question 503:

  A chief audit executive would most likely use risk assessment for audit planning because it provides:

  A. A systematic process for assessing and integrating professional judgment about probable adverse conditions.
  B. A listing of potentially adverse effects on the organization.
  C. A list of auditable activities in the organization.
  D. The probability that an event or action may adversely affect the organization.
  A. A systematic process for assessing and integrating professional judgment about probable adverse conditions.

• Question 504:

  An organization allows the same individual to physically access inventory and purchase new assets when supplies are depleted. Which of the following would best help the organization manage the risk of fraud?

  A. Accounting personnel should regularly perform a reconciliation between invoices and purchase orders.
  B. Accounting personnel should conduct a periodic inventory count and reconcile all inventory movements.
  C. Internal auditors should review the frequency and volume of purchased assets to detect trends in the inventory levels.
  D. Management should establish a policy requiring new inventory asset purchases to be made on serialized order forms with copies retained.
  D. Management should establish a policy requiring new inventory asset purchases to be made on serialized order forms with copies retained.

• Question 505:

  Fraud is most frequently detected by:

  A. Following up on tips from employees or citizens.
  B. Following up on analytical review of high-risk areas.
  C. Performing periodic reconciliations over cash and other assets.
  D. Performing unannounced audits or reviews of programs or departments.
  A. Following up on tips from employees or citizens.

• Question 506:

  Which of the following is an activity that an internal auditor must not perform?

  A. Establish and provide continuing assurance on an anti-money laundering program for new hires.
  B. Survey employees for their understanding of anti-money laundering practices.
  C. Provide assurance for the effectiveness of anti-money laundering training.
  D. Assess the risk of being ned for ineffective anti-money laundering practices.
  A. Establish and provide continuing assurance on an anti-money laundering program for new hires.

• Question 507:

  A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?

  A. Employees.
  B. Senior management.
  C. Common stockholders.
  D. Outside consultants.
  C. Common stockholders.

• Question 508:

  Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?

  A. Determining the scope.
  B. Reviewing internal controls.
  C. Testing.
  D. Evaluating findings.
  A. Determining the scope.

• Question 509:

  When planning an assurance engagement in a sales department, an internal auditor wants to obtain a general understanding of the sales returns statuses by reviewing the sales return files in the IT system. Which of the following competencies is important for the internal auditor to conduct this task?

  A. Data analytics.
  B. Risk assessment.
  C. Information gathering.
  D. Organizational behavior awareness.
  A. Data analytics.

• Question 510:

  Which of the following are appropriate ways to obtain continuous professional education?

  1. Instructing at a local IIA training event.

  2. Attending internal audit conferences and seminars.

  3. Practicing specialized audit and consulting work.

  4. Participating in research projects in internal auditing.

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