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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 601:

  An internal audit activity's work schedule should always provide suficient information to the audit committee to enable it to determine whether the proposed engagements:

  A. Support the organization's objectives.
  B. Include suficient fraud awareness.
  C. Will likely result in the detection of any major risk exposures.
  D. Are likely to detect control defficiencies.
  A. Support the organization's objectives.

• Question 602:

  Which of the following best distinguishes assurance services from consulting services under the Standards?

  A. Consulting engagements evaluate controls; assurance engagements provide advice.
  B. Assurance engagements provide conclusions; consulting engagements are advisory in nature.
  C. Consulting engagements are mandatory; assurance engagements are optional.
  D. Both types require approval from external auditors.
  B. Assurance engagements provide conclusions; consulting engagements are advisory in nature.

• Question 603:

  To comply with the proficiency standard, which of the following would the chief audit executive likely consider as the primary hiring criterion when choosing a new internal auditor?

  A. The length and consistency of the auditor's work experience.
  B. The auditor's demonstrated problem-solving skills.
  C. The auditor's skills compared to those already possessed by other audit staff.
  D. The auditor's ability to be self-motivated and a good team player.
  C. The auditor's skills compared to those already possessed by other audit staff.

• Question 604:

  A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO). Which of the following would impair the internal audit function's independence?

  A. The CFO determines the scope of internal audit work in the accounting department.
  B. The CFO manages the accounting of the budget for the internal audit function.
  C. The CFO administers the annual evaluation process for the internal auditors.
  D. The CFO provides feedback on the CAE's audit reports.
  A. The CFO determines the scope of internal audit work in the accounting department.

• Question 605:

  Which of the following is the best way to detect fraud?

  A. Conduct anti-fraud training.
  B. Perform background investigations.
  C. Implement process controls.
  D. Activate a whistleblower hotline.
  D. Activate a whistleblower hotline.

• Question 606:

  According to IIA guidance, which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?

  A. A report on the results of the assessment is issued upon completion, and progress on implementing recommended improvements must be reported monthly.
  B. The results are reported upon completion in confidence directly to the board, and management is advised only of the recommendations and improvement action plans.
  C. The results are shared with the board and management upon completion, and monitoring of recommended improvements must be reported at least annually.
  D. The results are communicated upon completion to the board and management, but action plans for recommended improvements do not have to be reported.
  C. The results are shared with the board and management upon completion, and monitoring of recommended improvements must be reported at least annually.

• Question 607:

  Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?

  A. Internal auditors have shown they have the freedom to carry out their responsibilities.
  B. Internal auditors have demonstrated the skills needed to carry out the audit engagement.
  C. Internal auditors have strictly followed a formal audit process in conducting their work.
  D. Internal auditors have demonstrated an unbiased mental attitude.
  B. Internal auditors have demonstrated the skills needed to carry out the audit engagement.

• Question 608:

  In order for an internal auditor to assess the opportunity for fraud to occur in an organization, which of the following does the auditor first need to understand?

  A. Fraud prevention.
  B. Fraud detection.
  C. Corporate culture.
  D. Forensic analysis techniques.
  C. Corporate culture.

• Question 609:

  Which of the following fundamental principles of The IIA's Code of Ethics is best described as performing work honestly, diligently, and responsibly?

  A. Integrity.
  B. Proficiency.
  C. Due Professional Care.
  D. Competency.
  A. Integrity.

• Question 610:

  Internal auditors are preparing for an engagement to evaluate an organization's plan to accept cryptocurrency as a form of payment. Which of the following would demonstrate the internal auditors' business acumen in this scenario?

  A. Auditors attended a seminar on mitigating risks related to blockchain.
  B. Auditors coordinated their engagement work with department managers.
  C. Auditors are available to provide consulting services to departments.
  D. Auditors attended critical thinking seminars.
  A. Auditors attended a seminar on mitigating risks related to blockchain.