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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 681:

  COBIT is primarily designed to:

  A. Define auditing standards for information technology auditors.
  B. Satisfy information technology regulatory requirements.
  C. Provide guidance to govern information technology activities.
  D. Assist technology professionals in interpreting technological specifications.
  C. Provide guidance to govern information technology activities.

• Question 682:

  The board asked the chief audit executive (CAE) to assume responsibility for a newly formed risk management function while retaining responsibility for the internal audit activity. The new function is comprised of both risk and compliance activities. How should next year's internal audit of the risk management function be performed?

  A. It should be performed by a competent assurance provider external to the internal audit activity.
  B. It should be performed by a qualified audit team in the internal audit activity and overseen by the most senior auditor other than the CAE.
  C. It should be conducted by a team of internal auditors under the supervision of risk and compliance managers.
  D. It should be performed by a team of the most experienced internal auditors, without oversight or direct involvement from the CAE.
  B. It should be performed by a qualified audit team in the internal audit activity and overseen by the most senior auditor other than the CAE.

• Question 683:

  After being terminated due to downsizing, an internal auditor nds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

  A. To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.
  B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
  C. In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.
  D. In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information
  B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.

• Question 684:

  The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigator. Which of the following would most likely be the next step?

  A. Ask internal auditors to gather all relevant information and evidence.
  B. Identify and interview witnesses first and potential suspects later.
  C. Conduct a fraud risk assessment to identify the most vulnerable areas.
  D. Determine the competencies needed and assess whether team members have a conflict of interest.
  D. Determine the competencies needed and assess whether team members have a conflict of interest.

• Question 685:

  Which of the following is the most common method of fraud detection?

  A. Analytical reviews of high-risk areas.
  B. Detective controls built into the daily processes.
  C. Unannounced audits or reviews of programs or departments.
  D. Tips received from employees or citizens.
  D. Tips received from employees or citizens.

• Question 686:

  In a retail organization, sales teams compete with each other to achieve and exceed sales targets. Each quarter, the members of the top sales team receive a bonus. In this environment, management should closely monitor for the emergence of which of the following potential risks?

  A. Risks related to employee turnover.
  B. Risks related to data manipulation.
  C. Risks related to employee competency.
  D. Risks related to not achieving sales targets.
  D. Risks related to not achieving sales targets.

• Question 687:

  An engagement manager is reviewing the results of sampling work performed by staff internal auditors. Which interim report statement should immediately give the engagement manager cause for concern about the nature and quality of the sampling procedure?

  A. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, sample size is 80 out of a large population.
  B. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 5%, the sample size is 1580.
  C. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, the confidence expressed is 95%.
  D. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the true, but unknown population rate is less than 5%,
  B. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 5%, the sample size is 1580.

• Question 688:

  A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

  A. Internal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits.
  B. Standard training for each employee, including internal auditors, is 10 hours per year.
  C. To enhance efficiency, internal auditors should not be rotated regularly among engagements.
  D. Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.
  D. Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

• Question 689:

  Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?

  1. Periodically report about the accounting standards followed by the organization.

  2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.

  3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.

  4. Maintain open and effective communications with the audit committee.

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

• Question 690:

  To develop greater internal auditing expertise, the chief audit executive (CAE) has been assigning the same relatively inexperienced team of internal auditors to a series of engagements spanning several months. Is this practice consistent with the Standards?

  A. Yes. The CAE is promoting the professional development of the staff.
  B. Yes. The experience will quickly build specialized skills and competencies.
  C. No. The team should collectively possess the competencies appropriate for the engagements.
  D. No. Teams should be comprised of both experienced and inexperienced auditors.
  C. No. The team should collectively possess the competencies appropriate for the engagements.