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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 691:

  Which of the following most accurately describes corporate social responsibility at an organization?

  A. An organizational focus on improving the overall environment, even if it is to the detriment of the local community.
  B. A philosophy driven by employees that flows up to senior management and the board of directors.
  C. An overall commitment of the organization to improve the quality of life for not only the employees but the community at large.
  D. A policy of ensuring that the organization is socially responsible, even if it leads to unprofitability due to increased costs.
  C. An overall commitment of the organization to improve the quality of life for not only the employees but the community at large.

• Question 692:

  Which of the following elements should an auditor recommend for inclusion in an organization's code of ethics?

  I- Ethics should vary with local customs in the organization's foreign operations.

  II-. Whistle-blowing should be discouraged because it can cause distrust among employees and false accusations which waste organizational resources on investigations.

  III-. Ethical behavior should not be incorporated into performance evaluations because it is too subjective and controversial.

  A. I only
  B. II only
  C. I, II, and III.
  D. None of the above.
  D. None of the above.

• Question 693:

  When can an internal audit activity use the statement, "Conforms with the International Standards for the Professional Practice of Internal Auditing"?

  A. The internal audit activity has been in existence for four years; the results of the last three consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics.
  B. The internal audit activity has been in existence for 11 years; the results of the last external assessment, performed six years ago, demonstrated general conformance with the Standards and Code of Ethics.
  C. The internal audit activity has been in existence for six years; although an external assessment has not yet been performed, the results of the last four consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics.
  D. The internal audit activity has been in existence for seven years; the results of the external assessment performed seven years ago and the last six consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics.
  B. The internal audit activity has been in existence for 11 years; the results of the last external assessment, performed six years ago, demonstrated general conformance with the Standards and Code of Ethics.

• Question 694:

  Which of the following best describes the primary purpose of corporate governance within an organization?

  A. To ensure that the organization's financial and regulatory disclosures are reported adequately.
  B. To review and recommend terms of reference for the various governance committees within the organization.
  C. To provide the structure for setting, attaining, and monitoring the organization's objectives.
  D. To establish standards for monitoring the performance of the organization.
  C. To provide the structure for setting, attaining, and monitoring the organization's objectives.

• Question 695:

  An internal auditor is assessing fraud risks and creating a fraud risk matrix for a particular branch location. Which of the following is most likely to be included in the matrix?

  A. Risks and relevant mitigating controls.
  B. Business processes and relevant fraud risks.
  C. Fraud scenarios and relevant risks.
  D. Opportunity, rationalization, and pressure to commit fraud.
  D. Opportunity, rationalization, and pressure to commit fraud.

• Question 696:

  A company's chief audit executive determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following actions would be the least acceptable?

  A. Notify the audit committee of the problem and consult with them regarding outsourcing the audit engagement to a qualified external auditing firm.
  B. Determine the requisite knowledge needed and obtain the proper training for auditors if such training is available within the appropriate time framework outlined by the audit committee.
  C. Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.
  D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.
  C. Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.

• Question 697:

  Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?

  A. Promoting continuous evaluation.
  B. Promoting continuous monitoring.
  C. Promoting continuous improvement.
  D. Promoting continuous reporting.
  B. Promoting continuous monitoring.

• Question 698:

  Which of the following is an advantage of email surveys compared to face-to-face interviews?

  A. They are less expensive.
  B. They have higher rates of response.
  C. Survey designers are able to use a broader variety of questions.
  D. Respondents can easily get clari cation on questions from survey designers or interviewers.
  A. They are less expensive.

• Question 699:

  Which source of audit evidence would provide the least value in flowcharting an organization's purchasing process?

  A. An interview with the purchasing supervisor.
  B. A review of a sample of purchase orders which were completed during the last month.
  C. A review of the purchasing policies and procedures manual.
  D. A walk-through of the process with a member of the purchasing staff.
  B. A review of a sample of purchase orders which were completed during the last month.

• Question 700:

  According to IIA guidance, which of the following is true with regard to the internal audit charter?

  1. It specifies the minimum resources needed for assurance engagements.

  2. It requires final approval from senior management.

  3. It defines the internal audit activity's authority and responsibilities.

  4. It describes the expectations for communicating the results of a quality assurance and improvement program.

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