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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 611:

  Which of the following would be the least desirable criteria against which to judge current operations of a company's treasury function?

  A. The operations of the treasury function as documented during the last audit engagement.
  B. Company policies and procedures delegating authority and assigning responsibilities.
  C. Finance textbook illustrations of generally accepted good treasury function practices.
  D. Codi cation of best practices of the treasury function in relevant industries.
  A. The operations of the treasury function as documented during the last audit engagement.

• Question 612:

  According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?

  A. The initial review of workpapers should be conducted after the final engagement report is issued.
  B. Independent internal assessments of the internal audit activity should be performed by entry-level staff as part of on-the-job training.
  C. Internal audit staff should be informed regularly of changes to policies and procedures.
  D. Training documents should be destroyed at the end of the year to create space for the next year's training documents.
  C. Internal audit staff should be informed regularly of changes to policies and procedures.

• Question 613:

  A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatis ed with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

  A. Require that all staff obtain a minimum of two relevant audit certifications.
  B. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.
  C. Engage a consultant to benchmark the IAA's training program against its peers.
  D. Assign one experienced manager to better coordinate staff training and development activities.
  B. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

• Question 614:

  Which of the following would not be considered part of preliminary survey of an engagement area?

  A. Interviews with individuals affected by the entity.
  B. Functional walk through test.
  C. Analytical reviews.
  D. Sampling scope.
  D. Sampling scope.

• Question 615:

  An organization established 20 years ago has had its internal audit activity in place for the last three years. Which of the following would allow the internal audit activity to accurately state that it is in conformance with the Standards?

  A. Documented assessment was performed by the audit committee and confirmed conformance.
  B. Internal and external assessments are performed annually, and nonconformance results are reported to the board.
  C. The independent and objective judgement of the chief audit executive confirmed conformance with the Standards.
  D. Documented internal assessments are performed periodically and confirm conformance.
  B. Internal and external assessments are performed annually, and nonconformance results are reported to the board.

• Question 616:

  A financial services organization's board is assessing increased regulations and its effect on current industry lending practices. Which of the following committees would help the board identify and assess the effects of the increased regulations?

  A. Quality committee.
  B. Audit committee.
  C. Risk committee.
  D. Governance committee.
  C. Risk committee.

• Question 617:

  Which of the following is the most important limitation on the effectiveness of audit committees?

  A. Audit committees may be composed of independent directors; however, those directors may have close personal and professional friendships with management.
  B. Audit committee members are compensated by the organization and thus favor a stockholder view.
  C. Audit committees devote most of their efforts to external audit concerns and do not pay much attention to internal auditing and the overall control environment.
  D. Audit committee members do not normally have degrees in the accounting or auditing fields.
  A. Audit committees may be composed of independent directors; however, those directors may have close personal and professional friendships with management.

• Question 618:

  When performing benchmarking during the planning phase of a performance audit, an internal auditor should:

  A. Determine the current performance gap.
  B. Project future performance levels.
  C. Develop functional action plans.
  D. Identify comparative organizations.
  D. Identify comparative organizations.

• Question 619:

  An organization is replacing its outsourced internal audit activity by hiring a chief audit executive (CAE) to build an internal audit department. Which of the following should be done to ensure the new department maintains appropriate independence?

  A. Ensure that senior management approves the risk-based internal audit plan.
  B. Update the audit charter to show the internal audit activity is no longer outsourced.
  C. Ensure that the CAE meets regularly with the board with no member of management present.
  D. Ensure no auditor is assigned to audit a department where they worked within the last year.
  C. Ensure that the CAE meets regularly with the board with no member of management present.

• Question 620:

  Which of the following actions best demonstrates an internal auditor exercising due professional care?

  A. Testing an entire population, even when a sample would suffice.
  B. Using technology and data analysis techniques for efficiency.
  C. Enhancing knowledge, skills, and other competencies through professional development.
  D. Establishing audit objectives, performing audit tests, and implementing missing controls.
  B. Using technology and data analysis techniques for efficiency.