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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 531:

  A global manufacturing company has three regional offices. The chief audit executive (CAE) is concerned about the cost of an upcoming external quality assessment of the internal audit activity. The last external assessment was performed six years ago. Recently, the internal audit staff at one of the regional offices performed an internal assessment.

  To ensure conformance with the Standards, what is the most appropriate action for the CAE to take?

  A. Request from the audit committee an additional budget and an extension so that the external assessment could be performed next year.
  B. Review the results of the internal assessment, identify weaknesses, and implement improvements at the remaining offices.
  C. Request the regional office that performed the internal assessment to perform an assessment of the remaining offices.
  D. Request that an external assessor validate the results of the internal assessment and review the remaining offices.
  D. Request that an external assessor validate the results of the internal assessment and review the remaining offices.

• Question 532:

  An internal auditor is testing the controls of a large and complex food production process where quality assurance is critical. Management provides process charts and documentation, but the auditor quickly determines that this information is incomplete and out of date. Which of the following would be the most appropriate course of action for the auditor to follow?

  A. Use the documentation but meet with the production supervisor to obtain updated information before proceeding.
  B. Amend the engagement objectives recognizing that important information is not available to protect the engagement's integrity.
  C. Defer the audit until management can provide updated charts and documentation as this is their responsibility.
  D. Use the documentation but use observation during the engagement to provide missing information.
  A. Use the documentation but meet with the production supervisor to obtain updated information before proceeding.

• Question 533:

  Which of the following statements is true regarding reporting results of the quality assurance and improvement program to senior management and the board?

  A. Internal assessments must be reported to the board at least every five years.
  B. If supported by assessment results, reporting provides assurance that internal auditors demonstrate conformance with the Code of Ethics.
  C. Following the reporting, the board must give the internal audit activity five years to correct any deviations.
  D. A report, including the results of both internal and external assessments, must be provided to the board annually.
  D. A report, including the results of both internal and external assessments, must be provided to the board annually.

• Question 534:

  An audit to test the system of controls over the purchase, distribution, and use of radioactive material is being conducted at a company's plants. The process is well documented, and employees in the safety department are very familiar with the department's procedures. Since the purchasing and facilities departments are involved in the process, the auditor is considering reviewing their radioactive material-handling procedures as well. The auditor should:

  A. Have confidence in the rigorous and detailed safety department procedures, since that department has the main responsibility for radiation safety, and should not use audit time to review other departments.
  B. Adjust the engagement schedule and budget, if needed, and interview the appropriate individuals in the purchasing and facilities departments to ascertain whether additional controls exist that complement those identified within the safety department.
  C. Test the controls identified within the safety department; if results are unfavorable, the auditor should consider whether to involve the other departments.
  D. Defer questions regarding purchasing, facilities, and other departments until audit projects can be scheduled for those departments.
  B. Adjust the engagement schedule and budget, if needed, and interview the appropriate individuals in the purchasing and facilities departments to ascertain whether additional controls exist that complement those identified within the safety department.

• Question 535:

  Which type of documentary evidence gathered by an organization's internal auditors has the highest level of reliability?

  A. Inventory test counts.
  B. Bank statements.
  C. Remittance advices.
  D. Written policy statements.
  A. Inventory test counts.

• Question 536:

  Which of the following is an example of sharing risk?

  A. An organization redesigned a business process to change the risk pattern.
  B. An organization outsourced a portion of its services to a third-party service provider.
  C. An organization sold an unprofitable business unit to its competitor.
  D. In order to spread total risk, an organization used multiple vendors for critical materials.
  B. An organization outsourced a portion of its services to a third-party service provider.

• Question 537:

  Risk assessments are valuable to the internal audit activity's planning process because they assist in:

  A. Eliminating all areas with low risk from the audit plan.
  B. Educating management on the importance of keeping the internal audit activity informed of organizational changes.
  C. Identifying the audit universe or auditable activities that need to be reviewed.
  D. Identifying risks that management and the internal auditors have overlooked.
  C. Identifying the audit universe or auditable activities that need to be reviewed.

• Question 538:

  According to IIA guidance, which of the following is the best example of a system application control?

  A. A physical security control over a data center.
  B. A system development life cycle control.
  C. A program change management control.
  D. An input control over data integrity.
  D. An input control over data integrity.

• Question 539:

  Which of the following does not need to be defined in the internal audit charter?

  A. The audit engagements to be performed during the upcoming year.
  B. The internal audit activity's position within the organization.
  C. The scope of internal audit activities.
  D. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.
  A. The audit engagements to be performed during the upcoming year.

• Question 540:

  According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?

  A. The CAE seeks senior management approval of the internal audit charter.
  B. The CAE obtains senior management's approval to hire staff.
  C. The CAE reports significant issues to the organization's CEO.
  D. The CAE provides the board with an annual budget for approval.
  D. The CAE provides the board with an annual budget for approval.