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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 571:

  When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?

  1. Include copies of all client files that were reviewed for the audit.

  2. Avoid the use of professional, industry-appropriate jargon and technical terms.

  3. Indicate the original sources of all data and information used in the workpapers.

  4. Leave blank space for cross-references to be completed during the post-audit process.

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

• Question 572:

  Which of the following statements describes a control failure that is not directly attributable to a customer billing application?

  1. End users have raised a number of concerns regarding data integrity.

  2. An untested program change is transferred from the test environment to production.

  3. Purchase history does not reconcile with accounts receivable for some customers.

  4. End user security is inadvertently granted to an unauthorized individual by management.

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

• Question 573:

  An internal auditor failed to identify transactions between the parent organization and a subsidiary. What is the most likely reason for the failure?

  A. The auditor misunderstood the audit objectives.
  B. The auditor lacked professional skepticism.
  C. The auditor's fieldwork was not properly supervised.
  D. The auditor lacked an understanding of the organization.
  B. The auditor lacked professional skepticism.

• Question 574:

  Which of the following would an internal auditor evaluate when the assignment is to assess the tone at the top?

  A. Senior management's interaction with the board, stakeholders, and their responses to media inquiries.
  B. Values and code of conduct established by senior management and their adherence to them.
  C. Content and length of board meetings as well as attendance records.
  D. Salaries, bonuses, and other benefits received by senior management during past financial year.
  B. Values and code of conduct established by senior management and their adherence to them.

• Question 575:

  According to the Standards, which of the following statements best describes the required content of the chief audit executive's (CAE) report to senior management and the board on the internal audit activity (IAA)?

  A. The CAE must report on significant risk exposures, control issues, and governance issues.
  B. The CAE must report on policies, procedures, and best practices of the IAA.
  C. The CAE must report on quality assurance techniques, statistical analysis methods, and other analytical processes used.
  D. The CAE must report on auditors' continuing education activities, staffing changes, and any outsourcing to external parties.
  A. The CAE must report on significant risk exposures, control issues, and governance issues.

• Question 576:

  Which of the following statements concerning corporate social responsibility (CSR) is most accurate?

  A. The primary goal of implementing a CSR program is to increase corporate profit in the long term.
  B. Companies are expected to invest more money into CSR programs as their profits increase.
  C. A CSR program, if managed effectively, will ensure the success of an organization.
  D. CSR focuses on pursuing organizational goals other than revenue growth and maximizing shareholder value.
  D. CSR focuses on pursuing organizational goals other than revenue growth and maximizing shareholder value.

• Question 577:

  During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.

  The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.

  Division management views the employee's actions as extra incentive to retain the employee. A decision to include the employee's action in the engagement final communication would be:

  1. A violation of the IIA Code of Ethics.

  2. A violation of the reporting requirements in the Standards.

  3. Justi ed and necessary, according to the IIA Code of Ethics and Standards.

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

• Question 578:

  When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:

  A. An inherent risk.
  B. A control risk.
  C. An audit risk.
  D. A residual risk.
  C. An audit risk.

• Question 579:

  Which of the following is characteristic of embezzlement?

  A. Favors from a supplier that is attempting to gain advantage when selling its products.
  B. Unlawful conversion of assets that are in the possession of an employee.
  C. Misrepresentation of material facts in order to mislead others to part with something of value.
  D. Stealing of material of value by unknown persons from outside the organization.
  B. Unlawful conversion of assets that are in the possession of an employee.

• Question 580:

  Which of the following is a limitation of internal controls?

  A. Controls can prevent all human error.
  B. Controls are designed to detect every instance of fraud.
  C. Controls may be overridden by management.
  D. Controls eliminate the need for external audits.
  C. Controls may be overridden by management.