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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 651:

  Which of the following would be a red flag for potential issues in the control environment?

  A. Segregation of duties during preparation of the financial statements.
  B. Compensation structures that are based on commissions.
  C. A low rate of turnover in key financial positions.
  D. The presence of a whistleblower policy and fraud hotline.
  B. Compensation structures that are based on commissions.

• Question 652:

  Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

  A. Proficiency in applying management principles in order to stand in for the chief financial officer.
  B. An understanding of management principles in order to evaluate deviations from good practices.
  C. An appreciation of internal audit standards in order to recognize problems.
  D. Proficiency in accounting principles in order to conduct fraud investigations.
  B. An understanding of management principles in order to evaluate deviations from good practices.

• Question 653:

  Which of the following organizations has an impairment to internal audit independence?

  A. An organization where the chief audit executive (CAE) reports administratively to the CEO, who is the highest officer within the organization.
  B. An organization in which the CAE reports functionally to the board, which is the governing body for the organization.
  C. An organization where the chief financial officer, who is a high-ranking executive, is responsible for approving the internal audit budget.
  D. An organization where the CAE is a member of the executive management team.
  C. An organization where the chief financial officer, who is a high-ranking executive, is responsible for approving the internal audit budget.

• Question 654:

  A staff member working in human resources found a sensitive document that discussed merger plans and potential layoffs. The document was considered privileged information for senior management only. The staff member disclosed information about the layoffs through his personal social media account. Which of the following actions should senior management perform first to address this situation?

  A. Assess the risks associated with disclosure and take the appropriate action against the staff member.
  B. Take immediate legal action against the staff member for stealing and disclosing sensitive information.
  C. Issue a formal statement to employees and any interested parties indicating that the disclosed information is not accurate.
  D. Identify weaknesses that created the opportunity to allow the unauthorized release of the documents.
  A. Assess the risks associated with disclosure and take the appropriate action against the staff member.

• Question 655:

  Which of the following is not an objective of internal control?

  A. Compliance.
  B. Accuracy.
  C. efficiency.
  D. Validation.
  D. Validation.

• Question 656:

  New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:

  A. Feedback control data.
  B. Irrelevant and argumentative information.
  C. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
  D. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
  A. Feedback control data.

• Question 657:

  Continuing Professional Education (CPE) hours for certified Internal Auditors may be achieved by:

  A. Attending audit staff meetings.
  B. Verifying that all completed audit tests are fully documented.
  C. Publishing an article on the company's internal audit department.
  D. Obtaining experience on the job.
  C. Publishing an article on the company's internal audit department.

• Question 658:

  Which of the following would best describe a control implemented to detect cash register disbursement fraud in a large retail store?

  A. Separate the duties of processing and authorizing refunds on merchandise.
  B. Post signs in the register area prompting customers to ask for and examine their sales receipts.
  C. Periodically count the cash in the register and compare it to the expected amount.
  D. Use cash registers with internal tapes that are tamper proof, and that require a manager to process voids or refunds.
  C. Periodically count the cash in the register and compare it to the expected amount.

• Question 659:

  In which of the following circumstances is it apparent that the internal auditor exercised due professional care in carrying out his duties?

  1. The internal auditor weighed the cost of the engagement against its potential benefits.

  2. The internal auditor used anonymous information from a whistleblower to report the existence of fraudulent activity.

  3. The internal auditor found minor and major instances of fraud and highlighted only the major instances in its report, in consideration of the board's limited time.

  4. The internal auditor decided to use new auditing software to assist with the statistical analysis required during the engagement.

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

• Question 660:

  Which of the following is the fundamental purpose of implementing a continuing professional development program within the internal audit activity?

  A. To ensure that auditors achieve their long-term career goals.
  B. To ensure that auditors obtain internal audit certification.
  C. To ensure that auditors consistently obtain high performance appraisal scores.
  D. To ensure that auditors collectively enhance competencies required to perform effectively.
  D. To ensure that auditors collectively enhance competencies required to perform effectively.