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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 551:

  Which of the following tools would provide the most useful depiction of a process ow that spans multiple departments in an organization?

  A. A vertical flowchart of each department, showing inputs at the top and outputs at the bottom.
  B. A narrative, with a section dedicated to the process of each department.
  C. A combination of a flowchart, which shows the process, and a narrative, which indicates the related department.
  D. A horizontal flowchart, with each department identified across the top and the process ow below.
  D. A horizontal flowchart, with each department identified across the top and the process ow below.

• Question 552:

  Which of the following best demonstrates organizational independence of the internal audit activity?

  A. The chief audit executive (CAE) reports functionally to the CEO.
  B. The CAE's compensation is approved by the chief financial officer.
  C. The CAE's appointment is determined by the CEO.
  D. The CAE reports administratively to the chief operating officer.
  D. The CAE reports administratively to the chief operating officer.

• Question 553:

  According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?

  I-. Oversight of Work Coordination of Activities Chief audit executive

  Senior management II-. Board Chief audit executive

  III-. Chief financial officer Chief audit executive

  IV-. Board Chief financial officer

  A. I
  B. II.
  C. III.
  D. IV.
  B. II.

• Question 554:

  Which of the following actions by the internal audit activity requires disclosure to the board of nonconformance with the Standards?

  A. The internal audit activity did not complete an external assessment within the last seven years.
  B. The internal audit activity performed an engagement with limited scope due to lack of knowledge.
  C. The internal audit activity failed to consider risk when conducting a review of a department.
  D. An internal auditor was assigned to an engagement in an area where she previously worked more than 10 years ago.
  A. The internal audit activity did not complete an external assessment within the last seven years.

• Question 555:

  A charitable organization provides substantial grants for important medical research. Assuming marginal controls are in place, which of the following possible frauds or misuses of organization assets should be considered the area of greatest risk?

  A. Senior executives are using company travel and entertainment funds for activities that might be considered questionable.
  B. Purchases of office supplies are made from ctitious vendors.
  C. Grants are made to organizations associated with senior executives.
  D. A payroll clerk has added a ctitious employee.
  C. Grants are made to organizations associated with senior executives.

• Question 556:

  The chief audit executive is asked to review a new anti-money laundering policy and provide feedback. Which is the most appropriate response?

  A. Offer to rewrite portions of the policy that contain errors.
  B. Seek approval from legal counsel.
  C. Perform the review, as requested.
  D. Decline to perform the review, to avoid a conflict of interest.
  C. Perform the review, as requested.

• Question 557:

  An auditor plans to analyze customer satisfaction, including:

  (1)

  customer complaints recorded by the customer service department during the last three months;

  (2)

  merchandise returned in the last three months;

  (3)

  responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?

  A. Although useful, such an analysis does not address any risk factors.
  B. The survey would not consider customers who did not make purchases in the last three months.
  C. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.
  D. Analysis of three months' activity would not evaluate customer satisfaction.
  B. The survey would not consider customers who did not make purchases in the last three months.

• Question 558:

  An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?

  1. They are most effective when using a combination of current and prior engagement findings to draw conclusions.

  2. They typically are based on defined procedures such as those found in an accounts payable reconciliation process.

  3. They are discrete and not normally shared with senior management or the board.

  4. They can rely on evidence taken from the work of other assurance activities across the organization.

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

• Question 559:

  Which of the following requests, if accepted by the internal audit activity, would impair its independence?

  A. A request to develop workshops on corporate governance for management.
  B. A request to act as liaison with external auditors.
  C. A request to determine appropriate risk management responses for management.
  D. A request to provide counseling services on ethical matters.
  C. A request to determine appropriate risk management responses for management.

• Question 560:

  The audit process used by the internal audit activity of a large wholesale clothing company does not include an engagement letter or project approval document. The most serious consequence of this defficiency in the process is that the:

  A. Audit schedule may not be optimal from the engagement client's perspective.
  B. Audit objectives may not be understood by management of the area being audited.
  C. Audit resources may not be suficient.
  D. Audit plan priority may have changed.
  B. Audit objectives may not be understood by management of the area being audited.