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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 521:

  Which of the following is least likely to be considered material in an audit of a medium-sized organization?

  A. A $1,000 overstatement of the accrued-vacation payable account.
  B. A violation of a government statute.
  C. Fraud resulting in a cash loss to the organization.
  D. An underpayment to the employee pension fund.
  A. A $1,000 overstatement of the accrued-vacation payable account.

• Question 522:

  In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:

  A. Availability of records and data.
  B. Potential impact of risks.
  C. Audit personnel's knowledge and experience.
  D. Time required to complete the engagement.
  B. Potential impact of risks.

• Question 523:

  The chairperson of an organization's audit committee has obtained a risk management report that identifies significant industry concerns that impact the organization. The chairperson has asked the chief audit executive (CAE) to review these concerns and advise if they are relevant to the organization. How should the CAE respond?

  A. Accept the engagement but communicate only with the audit committee to protect the confidentiality of the request.
  B. Decline the engagement because it is outside of the scope of the internal audit charter.
  C. Decline the engagement because it impairs the internal audit activity's independence.
  D. Accept the engagement but inform senior management of the request.
  D. Accept the engagement but inform senior management of the request.

• Question 524:

  According to IIA guidance, which of the following best demonstrates due professional care?

  A. staffing audit engagements with internal auditors who possess professional designations.
  B. Relying on prior audit work to save planning time and costs.
  C. Performing assurance procedures to guarantee all significant risks are identified.
  D. Assessing the cost of assurance in relation to the potential benefits.
  D. Assessing the cost of assurance in relation to the potential benefits.

• Question 525:

  In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?

  A. Conformance with the Standards.
  B. Nonconformance with the Standards.
  C. Unable to determine conformance with the Standards.
  D. Partial conformance with the Standards.
  C. Unable to determine conformance with the Standards.

• Question 526:

  Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

  A. Auditors must be given assignments based primarily upon their years of experience.
  B. All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.
  C. Tasks must be assigned to the audit team member who is most qualified to perform them.
  D. All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.
  B. All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

• Question 527:

  According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

  A. The audit committee and senior management.
  B. The audit committee and the external auditors.
  C. Senior management and management of the audited area.
  D. Senior management and the external auditors.
  A. The audit committee and senior management.

• Question 528:

  A quantitative risk assessment model has all of the following advantages except:

  A. Accommodating a large number of risk factors in the assessment.
  B. Providing documentation for the chief audit executive, who must defend the long-range audit plan.
  C. Providing a systematic method of applying weightings to risks and priorities.
  D. Removing the need for judgment on the part of the chief audit executive.
  D. Removing the need for judgment on the part of the chief audit executive.

• Question 529:

  Which combination of strategies would provide the best evaluation of the effectiveness of the organization's risk assessment activity?

  1. Interview staff at various levels to discuss the organization's objectives, significant risks, and risk appetite.

  2. Review board meeting minutes to determine whether the significant risks identified are communicated timely to the board.

  3. Evaluate the adequacy and timeliness of management remediation actions by reviewing the control design, testing the controls, and reviewing monitoring procedures.

  4. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.

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

• Question 530:

  A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

  A. The CAE should not interfere because there is no evidence that a conflict of interest has occurred.
  B. The CAE should remind the senior auditor of his obligation to be objective and impartial.
  C. The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.
  D. The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.
  C. The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.