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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 561:

  A chief audit executive (CAE) is considering outsourcing an assurance engagement to a third party, as this option provides the relevant skills for the engagement, which the internal audit staff currently does not possess. Management rejects the request to hire a third party for this engagement, citing budget constraints. Therefore, the CAE eventually accepts to carry out the audit using the internal audit staff. Which principle of The IIA's Code of Ethics is violated in this situation?

  A. Integrity.
  B. Proficiency.
  C. Due professional care.
  D. Competency.
  D. Competency.

• Question 562:

  Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?

  I- Areas where personal information is collected, used, stored, and disseminated.

  II-. Inherent risk.

  III-. Privacy practices of competitors.

  IV-. Third-party recipients of information.

  A. III only
  B. I and II only
  C. I, II, and IV only
  D. I, II, III, and IV.
  C. I, II, and IV only

• Question 563:

  Which of the following actions does not violate the IIA Code of Ethics or Standards?

  A. An internal auditor performing an audit on an operation that they managed less than a year ago.
  B. An internal auditor performing an audit on procedures that they were responsible for creating.
  C. An internal auditor disclosing details of an audit report to colleagues from a different organization.
  D. An internal auditor disclosing confidential information in response to a lawsuit.
  D. An internal auditor disclosing confidential information in response to a lawsuit.

• Question 564:

  Which of the following statements is true regarding the importance of risk management?

  A. Risk management ensures the ability to eliminate potential hazards to the organization.
  B. Risk management includes consideration of potential opportunities for the organization.
  C. Risk management aids with the establishment of appropriate key performance indicators.
  D. Risk management increases employees' commitment and belief in strategic goals.
  B. Risk management includes consideration of potential opportunities for the organization.

• Question 565:

  Which of the following best describes the underlying premise of the COSO enterprise risk management framework?

  A. Management should set objectives before assessing risk.
  B. Every entity exists to provide value for its stakeholders.
  C. Policies are established to ensure that risk responses are performed effectively.
  D. Enterprise risk management can minimize the impact and likelihood of unanticipated events.
  B. Every entity exists to provide value for its stakeholders.

• Question 566:

  Which of the following is least likely to enhance the independence of an internal audit activity?

  A. The existence of a formal written charter for the internal audit activity.
  B. Submission of an annual internal audit work plan to the audit committee.
  C. A direct reporting relationship to the audit committee.
  D. Adherence to the organization's position classification structure.
  D. Adherence to the organization's position classification structure.

• Question 567:

  Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer. Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

  1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.

  2. Experience of the engineer in the type of work being considered.

  3. Compensation or other incentives that the engineer may receive.

  4. The extent of other ongoing services that the engineer may be performing for the organization.

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

• Question 568:

  Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

  A. Accept the assignment provided that such consulting services are defined in the charter.
  B. Decline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.
  C. Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.
  D. Do not accept the assignment because the assignment is not part of an approved audit plan.
  A. Accept the assignment provided that such consulting services are defined in the charter.

• Question 569:

  Which of the following statements is true regarding the internal audit activity's quality assurance and improvement program (QAIP)?

  A. Internal assessments must be performed by the chief audit executive.
  B. An internal assessment must be performed at least once every five years.
  C. It is permissible to share the results of the QAIP with the organization's external auditors.
  D. Results of ongoing monitoring must be validated annually by an independent external assessor.
  B. An internal assessment must be performed at least once every five years.

• Question 570:

  A tax consultancy agency retains sensitive personal information regarding its clients. Which of the following is a violation of acceptable privacy practices?

  A. Copies of printed client information not used by the agency are shredded.
  B. Employees share client information with coworkers with the permission of the client.
  C. The agency only releases client information with management's approval.
  D. The agency advises clients of their privacy rights before they commence business with the agency.
  C. The agency only releases client information with management's approval.