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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 581:

  An internal auditor audited a department store's cash function. Which of the following actions would indicate a lack of due professional care by the auditor?

  A. Based on a well-designed system of internal controls over the cash function, the audit report assured senior management that no irregularities existed.
  B. A flowchart of the entire cash function was developed but only samples of transactions were tested.
  C. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
  D. The auditor informed appropriate authorities within the organization about suspected wrongdoing but did not inform external authorities.
  A. Based on a well-designed system of internal controls over the cash function, the audit report assured senior management that no irregularities existed.

• Question 582:

  Which of the following controls would most likely prevent fraud related to the overpayment of vendors?

  A. Require supervisory review of all invoices and cash disbursements exceeding a stated threshold.
  B. Require the matching of a purchase order, receiving report, and invoice before payment.
  C. Require all checks to be signed by more than one person.
  D. Require all invoices to be paid within 30 days by check only.
  B. Require the matching of a purchase order, receiving report, and invoice before payment.

• Question 583:

  Which of the following is a preventive control?

  A. Creating an audit trail.
  B. Placing controls on physical access to inventory.
  C. Reconciling purchase orders with approvals.
  D. Reviewing expense accounts for irregularities.
  B. Placing controls on physical access to inventory.

• Question 584:

  Which of the following is an indicator of ineffective third-party risk management?

  A. Sourcing of third parties does not follow public procurement law.
  B. Violations of service conditions trigger either nes or termination.
  C. Due diligence of third parties is conducted only after contract signing.
  D. The right-to-audit clause is limited by personal data protection regulations.
  C. Due diligence of third parties is conducted only after contract signing.

• Question 585:

  IT management requires all employees in the IT department to attend annual training on the department's mission, values, and key performance measures. This activity is designed to prevent which of the following conditions?

  A. Knowledge/skills gap.
  B. Monitoring gap.
  C. Accountability/reward failure.
  D. Communication failure.
  C. Accountability/reward failure.

• Question 586:

  The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?

  A. Take no action, as there is no impairment to independence.
  B. Remove the new internal auditor from the engagement team.
  C. Discuss the matter with the appropriate personnel to alleviate concerns.
  D. Closely supervise the new auditor and carefully review his work.
  C. Discuss the matter with the appropriate personnel to alleviate concerns.

• Question 587:

  An internal audit team received the following feedback from operational management via a post-engagement survey:

  "Management agrees with all audit findings. However, the audit team did not consider our input on the best way to resolve the issues."

  This feedback is an indication that the internal audit activity may need to improve which of the following interpersonal skills?

  A. Leadership.
  B. Con ict management.
  C. Communication.
  D. In uence.
  C. Communication.

• Question 588:

  In order to ensure that the internal auditors have the objectivity required by the Standards, the chief audit executive should:

  A. Demonstrate willingness to include in engagement final communications all matters believed to be important.
  B. Require all auditors to sign statements attesting to their independent mental attitudes and honest belief in their work product.
  C. Carefully assign personnel to individual audit engagements and require auditors to disclose all conflicts of interest.
  D. Appraise each auditor's performance on each audit assignment.
  C. Carefully assign personnel to individual audit engagements and require auditors to disclose all conflicts of interest.

• Question 589:

  Which of the following should be the first step that an internal auditor takes to establish data integrity when building an audit working copy of a large database?

  A. Search for anomalies in the extracted information.
  B. Verify that all required data was downloaded.
  C. Review the data for statistical patterns.
  D. Ensure that the data is e ciently organized within the database.
  B. Verify that all required data was downloaded.

• Question 590:

  An internal auditor is testing whether payments to outside contractors have been charged to the proper account. Which of the following sampling methods would be most useful in completing this task?

  A. Haphazard sampling.
  B. Probability-proportional-to-size sampling.
  C. Attribute sampling.
  D. Judgmental sampling.
  B. Probability-proportional-to-size sampling.