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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 621:

  According to the Standards, which of the following demonstrates the proficiency of an internal auditor?

  A. Each internal auditor must hold one or more certifications in the area of fraud and seek out continuing professional development related to fraud detection and fraud investigation.
  B. Each internal auditor must have suficient knowledge of IT risks and controls, and be able to evaluate the risk of fraud and the manner in which it is managed by the organization.
  C. Each internal auditor on the engagement team must possess the same level of knowledge, skills, and other competencies as other auditors on the engagement team.
  D. Each internal auditor must be paired, by the chief audit executive, with an individual who possesses the knowledge, skills, or other competencies required to complete the audit.
  B. Each internal auditor must have suficient knowledge of IT risks and controls, and be able to evaluate the risk of fraud and the manner in which it is managed by the organization.

• Question 622:

  A member of the IT department transfers to the internal audit department. A few months after transferring, the new auditor volunteers to assist in an assurance engagement for the IT department. According to the Standards, how should the chief audit executive respond?

  A. Decline the offer because the internal auditor subordinated professional judgment, and objectivity is therefore impaired.
  B. Decline the offer because the internal auditor recently transferred from the IT department.
  C. Accept the offer because the internal auditor maintains an independent mental attitude and is therefore objective.
  D. Accept the offer because the internal audit charter grants the internal auditor authority to maintain objectivity.
  B. Decline the offer because the internal auditor recently transferred from the IT department.

• Question 623:

  During the annual fraud risk assessment, an organization identified that an employee in the accounts payable department has the ability to both enter a new vendor into the system and process payments to the vendor. Which of the following is a preventative control that an auditor would propose to reduce the risk in this scenario?

  A. New vendors may only be added into the vendor management system by employees in the procurement department.
  B. Vendor payments may only be processed by employees in the accounts payable department.
  C. An anonymous employee hotline is established for employees to report any suspicious activity they witness regarding payments to vendors.
  D. The vendor management system activity log is reviewed by management on a weekly basis for suspicious transactions.
  B. Vendor payments may only be processed by employees in the accounts payable department.

• Question 624:

  Which of the following is a preventive control the organization could implement to mitigate fraudulent activity in the accounts payable department?

  A. Delivering fraud awareness training to employees in the department.
  B. Segregating duties between employees in the department.
  C. Requesting the internal audit activity perform an independent evaluation of fraud risk in the department.
  D. Requiring accounts payable employees to sign a code of conduct awareness confirmation.
  B. Segregating duties between employees in the department.

• Question 625:

  Which of the following would not be a red flag for fraud?

  A. Several recent, large expenditures to a new vendor have not been documented.
  B. A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.
  C. A weak control environment has been accepted by management to encourage creativity.
  D. New employees occasionally fail to meet established project deadlines due to staffing shortages.
  D. New employees occasionally fail to meet established project deadlines due to staffing shortages.

• Question 626:

  In selecting a team to perform an internal audit of a purchasing operation, which of the following characteristics would not preclude an auditor from being selected?

  1. The auditor's spouse is employed by the clerical section of the purchasing records unit.

  2. The auditor had been a purchasing agent five years earlier.

  3. The auditor's family owns a business that regularly sells goods to the organization.

  4. The auditor has received a desk calendar as a promotional gift from a vendor.

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

• Question 627:

  Which of the following characteristics could indicate high risk?

  A. Management decisions are made by a committee of mid to higher level management personnel.
  B. The company is not in a rapidly growing industry.
  C. The company's profitability is lower than the industry norm.
  D. Management turnover has been very low.
  C. The company's profitability is lower than the industry norm.

• Question 628:

  An internal auditor conducted a surprise inventory count at a warehouse of a small subsidiary. By the end of the count, it became apparent that a few items from several categories were missing. The warehouse manager explained that he took those items for personal needs, and he said that he would provide information about other employees' wrongdoings to avoid being reported. The auditor agreed not to report the issue, which ultimately enabled her to uncover more significant losses. Which of the following statements is true regarding this situation?

  A. This scenario demonstrates an impairment to audit independence.
  B. The auditor acted in accordance with the definition of Internal Auditing, adding value to the organization.
  C. The auditor demonstrated due professional care and cost-benefit considerations.
  D. The auditor appears to lack personal integrity.
  A. This scenario demonstrates an impairment to audit independence.

• Question 629:

  Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be.

  A. Edit controls on the payroll file.
  B. Appropriate segregation of duties for batch approval.
  C. Validation of hash totals.
  D. Reconciliation of paychecks to the bank account.
  C. Validation of hash totals.

• Question 630:

  What conclusion can be reached by comparing a random sample of vendor invoices to purchase orders?

  A. No duplicate invoices were received.
  B. No duplicate payments were made.
  C. Invoices were for authorized purchases.
  D. Authorized invoices were paid.
  C. Invoices were for authorized purchases.