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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 641:

  An internal auditor is testing whether employee job descriptions refiect business objectives. The internal auditor is evaluating which type of risk?

  A. Accountability.
  B. Knowledge.
  C. Communication.
  D. Reward.
  A. Accountability.

• Question 642:

  Which of the following is not an appropriate role for internal auditors after a disaster occurs?

  A. Monitor the effectiveness of the recovery and control of operations.
  B. Correct defficiencies of the entity's business continuity plan.
  C. Recommend future improvements to the entity's business continuity plan.
  D. Assist in the identification of lessons learned from the disaster and the recovery operations.
  B. Correct defficiencies of the entity's business continuity plan.

• Question 643:

  As a result of a high-pro file processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?

  A. The organization's board of directors.
  B. The chief audit executive.
  C. The business unit manager and the engagement supervisor.
  D. The compliance manager and the business unit manager.
  C. The business unit manager and the engagement supervisor.

• Question 644:

  An auditor for a large wholesaler is evaluating the controls over the approval and oversight of credit sales. Which of the following procedures would be a control weakness?

  A. The credit department is responsible for approving shipments to all customers.
  B. The finance committee of the board of directors periodically reviews credit standards.
  C. Customers who fail to meet credit requirements must pay cash for shipments upon delivery.
  D. The sales department is responsible for determining the credit ratings of customers.
  D. The sales department is responsible for determining the credit ratings of customers.

• Question 645:

  Which of the following is a component of the internal audit value proposition endorsed by IIA guidance?

  A. Insight.
  B. Independence.
  C. Integrity.
  D. Competency.
  A. Insight.

• Question 646:

  Which of the following is true about corporate social responsibility (CSR)?

  A. Social and environmental considerations are required parts of an organization's decision making.
  B. The Global Reporting Initiative provides standards on required disclosures of CSR.
  C. CSR activities are overseen and managed by operational management.
  D. Internal auditors can provide assurance on reported sustainability results.
  A. Social and environmental considerations are required parts of an organization's decision making.

• Question 647:

  Why is a chief audit executive (CAE) required to consult senior management and the board when preparing the internal audit plan?

  A. To receive direction on which projects they would like the CAE to include in the internal audit plan.
  B. To understand important initiatives or strategic objectives that may present significant risks to the organization.
  C. To compare the results of the internal audit risk assessment with management's risk assessment and determine alignment.
  D. To create awareness of the plan's contents, garner support, and avoid unanticipated resistance prior to nalizing the plan.
  B. To understand important initiatives or strategic objectives that may present significant risks to the organization.

• Question 648:

  An internal auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary defficiency with the above process is that:

  A. The auditor failed to consider the importance of the information offered.
  B. A questionnaire was used in a situation where a structured interview should have been used.
  C. The use of a questionnaire precluded the auditor from documenting other information.
  D. The engagement program was incomplete.
  A. The auditor failed to consider the importance of the information offered.

• Question 649:

  Which of the following statements is true regarding engagement planning?

  A. The scope and objectives are determined by internal auditors in both assurance and consulting engagements.
  B. The scope and objectives for assurance engagements are determined by internal auditors, while in consulting engagements they are agreed with the client.
  C. For both assurance and consulting engagements, the objectives are determined by management and the scope is determined by internal auditors.
  D. For assurance engagements, the scope and objectives are determined by internal auditors; for consulting engagements, the scope and objectives are determined by the client.
  B. The scope and objectives for assurance engagements are determined by internal auditors, while in consulting engagements they are agreed with the client.

• Question 650:

  A chief audit executive (CAE) ensures that internal auditors maintain professional objectivity by:

  A. Limiting engagements to low-risk areas.
  B. Avoiding participation in system design or policy development.
  C. Reporting directly to line management.
  D. Relying solely on external quality assessments.
  B. Avoiding participation in system design or policy development.