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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 541:

  A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

  A. Preparing the financial statements for the company's defined contribution plan.
  B. Performing a pre-implementation review of the company's payroll application.
  C. Providing the COBIT framework as a possible IT management tool.
  D. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.
  A. Preparing the financial statements for the company's defined contribution plan.

• Question 542:

  Which of the following statements is true regarding the role of the internal audit activity in the organization's risk management process?

  A. The internal audit activity should not be responsible for developing the organization's risk management framework, even with appropriate safeguards.
  B. The internal audit activity is typically responsible for alerting operational management to emerging risks and changes in regulatory scenarios.
  C. The internal audit activity may coach management on risk response scenarios if safeguards have been implemented.
  D. The internal audit activity should avoid giving assurance regarding the accuracy of risk evaluations if safeguards have not been implemented.
  B. The internal audit activity is typically responsible for alerting operational management to emerging risks and changes in regulatory scenarios.

• Question 543:

  Which of the following is a limitation when using the bottom-up approach to assess an organization's risk management process?

  A. The level of detail gathered is low.
  B. The assessment may take on a governance focus.
  C. Feedback may be inconsistently distributed across participants.
  D. insufficient documents are available for review.
  C. Feedback may be inconsistently distributed across participants.

• Question 544:

  An internal auditor discovered that a former colleague from the internal audit activity now works in a junior position in a department scheduled for an upcoming audit. How can the auditor best ensure his objectivity for this engagement?

  A. Recommend that the chief audit executive outsource the upcoming audit engagement.
  B. Proceed with the audit engagement in accordance with the internal audit manual.
  C. Increase the amount of fieldwork in order to build greater credibility for audit conclusions.
  D. Declare a conflict of interest and hand over the engagement to another auditor.
  D. Declare a conflict of interest and hand over the engagement to another auditor.

• Question 545:

  While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization. Which of the following actions are most appropriate for the auditor to take?

  A. Consult with an immediate supervisor and notify the organization's audit committee.
  B. Consult with an immediate supervisor and review the organization's ethics policy.
  C. Give the prize to a friend or family member and notitfy the organization's audit committee.
  D. Give the prize to a friend or family member and review the organization's ethics policy.
  B. Consult with an immediate supervisor and review the organization's ethics policy.

• Question 546:

  According to IIA guidance, if an internal auditor suspects fraud during an assurance engagement, what should the auditor do first?

  A. Recommend parties involved to be sanctioned in accordance with the organization's policy.
  B. Determine whether any additional audit work needs to be performed.
  C. Launch an investigation to obtain details of the fraud and parties involved.
  D. Request that the responsible process owner remediate the issue immediately.
  B. Determine whether any additional audit work needs to be performed.

• Question 547:

  According to The IIA's Competency Framework, which competency is considered the mandatory minimum for internal auditors to possess when performing internal audit engagements?

  A. To recognize red flags that indicate fraud.
  B. To recommend controls to prevent fraud.
  C. To apply forensic auditing techniques to detect fraud.
  D. To evaluate the potential for fraud.
  D. To evaluate the potential for fraud.

• Question 548:

  In order to effectively handle conflict between audit team members, an audit team leader should:

  A. Avoid addressing the conflict until the leader is sure that there is a problem.
  B. Be assertive and keep the team members focused on a resolution.
  C. Ask one of the team members to resolve the issue by being more conciliatory.
  D. Transfer one of the team members to another assignment.
  B. Be assertive and keep the team members focused on a resolution.

• Question 549:

  An internal auditor is testing, on a sample basis, whether invoices paid between January 1 and December 31 are supported by appropriately approved purchase orders. Over 25,000 invoices were paid during the scal year, which runs from

  the first of April to the end of March. The auditor sets the acceptable risk of assessing control risk too low at 5% and the tolerable deviation rate at 5%. The internal auditor consults the previous audit and sets the expected population deviation

  rate at 1%. Sample size (77) is selected from a table and rounded up to 80. No sample deviations were found. The upper deviation limit was 3. 7%.

  Which of the following statements represents a valid conclusion regarding this information?

  A. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3. 7%. Results indicated that the sample size was too small, as no sample deviations were found.
  B. I am 95% confident that the actual population deviation rate is 3. 7%. Since this is less than the tolerable deviation rate, quantitative attribute testing results indicate that the control is effective.
  C. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3. 7%. The quantitative attribute testing results indicate that the control is effective.
  D. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3. 7%. The quantitative attribute testing results indicate that the
  C. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3. 7%. The quantitative attribute testing results indicate that the control is effective.

• Question 550:

  Which of the following process weaknesses is most likely to cause an internal auditor the most concern about fraud risk?

  A. Final employee payroll list is belatedly sent to the bank for payment processing.
  B. Employee salary is calculated by the payroll system without further verification.
  C. Employee personal records in the permanent file are not updated in a timely manner.
  D. Employee personal information in the payroll system could be updated without approval.
  D. Employee personal information in the payroll system could be updated without approval.