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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 631:

  Which of the following is the most appropriate outcome measure for assessing safety operations?

  A. Number of inspections conducted.
  B. Tests made of equipment.
  C. Reduction in machine down time due to accidents.
  D. Number of operations observed.
  C. Reduction in machine down time due to accidents.

• Question 632:

  Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed suficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area. Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?

  A. Engage the former head of the institution's derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.
  B. Request that senior management allow a delay of the fraud investigation until the internal audit activity's on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.
  C. Request that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner with derivatives experience to perform all aspects of the investigation and subsequent reporting.
  D. Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit
  D. Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit

• Question 633:

  Which of the following best describes the expectation for internal auditors to demonstrate due professional care when performing their work?

  A. Internal auditors consider the possibility of fraud during all assurance engagements.
  B. Internal auditors ensure that any risks within the engagement scope are identified.
  C. Internal auditors provide absolute assurance to senior management and the board.
  D. Internal auditors mitigate risks to a level deemed acceptable by the organization.
  A. Internal auditors consider the possibility of fraud during all assurance engagements.

• Question 634:

  According to IIA guidance, which of the following best describes how risks are measured?

  A. Likelihood and probability.
  B. Impact and relevance.
  C. Velocity and rate of occurrence.
  D. Likelihood and impact.
  D. Likelihood and impact.

• Question 635:

  Which of the following scenarios is a characteristic of an organization with a highly effective ethical culture?

  A. An organization implements and communicates to staff a formal and comprehensive code of conduct, which is clear and understandable.
  B. An organization waives reference and background checks when hiring for certain sensitive positions in order to not violate potential employees' rights to privacy.
  C. An organization punishes senior management more harshly for ethics violations than it would for lower-level staff to send a message throughout the organization.
  D. An organization conducts surveys of employees, suppliers, and customers once every five years to determine the state of the ethical climate in the organization.
  A. An organization implements and communicates to staff a formal and comprehensive code of conduct, which is clear and understandable.

• Question 636:

  While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?

  1. Ensure all tests use a random sampling technique.

  2. Consider a judgmental approach for the sample size.

  3. Assess testing errors through root cause analysis.

  4. Ensure that the entire data set is tested.

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

• Question 637:

  In an audit engagement, a group of internal auditors used an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps in the computer software, and then developed test data.

  Over the course of 24 months, they submitted test transactions on a regular basis but did not find any differences between payroll processing and integrated test facility results.

  Based on the data, what can the auditors conclude?

  A. Payments to employees during the 24-month period were all correct.
  B. The computer application and its control procedures correctly processed payroll over the 24-month period.
  C. Employees are properly submitting their hours to payroll.
  D. The computer software is awed.
  B. The computer application and its control procedures correctly processed payroll over the 24-month period.

• Question 638:

  Which of the following factors is not likely to affect the level of inherent risk associated with an application system?

  A. The system is strategic.
  B. Controls over the system appear reliable.
  C. The system is not a critical operating system.
  D. The system uses complex technology.
  B. Controls over the system appear reliable.

• Question 639:

  A chief audit executive is finding it increasingly difficult to obtain cooperation from some managers who refuse to provide access to records and property when requested. To address this situation, which of the following should be reinforced?

  A. The authority of the internal audit activity.
  B. The independence and objectivity of the internal audit activity.
  C. The objectives of the quality assurance and improvement program.
  D. The responsibilities of the internal audit activity.
  A. The authority of the internal audit activity.

• Question 640:

  The chief commodity trader for a large energy company learns from a friend that a competitor will likely fail its upcoming regulatory audit and will be forced to temporarily decrease production. If the information is true, the trader has short-term opportunities to make trades that will nancially benefit the trader's company and will lead to a substantial increase in the trader's performance bonus. However, if the information is not true, making the trades will significantly increase the company's risk of being caught in a long position. From an ethical perspective, which of the following would be the most appropriate course of action for the trader to take?

  A. Make the trade because the company and the trader will both benefit.
  B. Have another trader on staff make the trade in order to avoid a conflict of interest.
  C. Disclose the information to the risk oversight committee but proceed with the trade to capitalize on the opportunity.
  D. Defer the decision to management and risk the loss of the trading opportunity.
  D. Defer the decision to management and risk the loss of the trading opportunity.