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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 701:

  From a fraud risk management perspective, which of the following best explains the need to review a vendor master file for duplicates or similar names?

  A. To mitigate the risks related to the lack of segregation of duties.
  B. To mitigate the risks related to invoice authorization process.
  C. To mitigate the risks related to quality of data in vendor master file.
  D. To mitigate the risks related to payments to unapproved bank accounts.
  D. To mitigate the risks related to payments to unapproved bank accounts.

• Question 702:

  Which of the following internal control weaknesses would an internal auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?

  A. Purchasing policies have not been updated.
  B. The organization is not taking advantage of quantity discounts available from its suppliers.
  C. Payments for goods received have not been authorized at the appropriate level.
  D. Payments to suppliers are made before goods are received.
  D. Payments to suppliers are made before goods are received.

• Question 703:

  Which of the following activities best refiects the scope and status of the internal audit activity as defined in the internal audit policy statement?

  A. The internal auditor reviews the physical access to merchandise during an inventory count.
  B. The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards.
  C. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
  D. The board approves the annual performance evaluation of the chief audit executive.
  A. The internal auditor reviews the physical access to merchandise during an inventory count.

• Question 704:

  The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1,000 as a gift. Which statement regarding acceptance of the money is correct?

  A. Accepting the money would be prohibited only if it were non-customary.
  B. Accepting the money would violate the IIA Code of Ethics.
  C. Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization's code of conduct.
  D. Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.
  B. Accepting the money would violate the IIA Code of Ethics.

• Question 705:

  According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?

  1. The complexity of the work required.

  2. The needs and expectations of the client.

  3. The potential value of the engagement compared to the effort.

  4. Information regarding assumptions and procedures to be employed.

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

• Question 706:

  Which segregation of duties would best reduce the risk of payroll fraud?

  A. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers.Paychecks are automatically deposited in the employee's bank account.
  B. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.
  C. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
  D. Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically
  A. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers.Paychecks are automatically deposited in the employee's bank account.

• Question 707:

  According to IIA guidance, which of the following statements is correct concerning the knowledge, skills, and competencies required to fulfill the responsibilities of the internal audit activity (IAA)?

  A. The IAA must collectively possess the knowledge, skills, and competencies needed to perform all engagements.
  B. Each internal auditor in the IAA must possess the competencies required to detect and investigate fraudulent transactions.
  C. The IAA must not decline any engagement based solely on a lack the necessary knowledge, skills, and competencies to perform it.
  D. The competencies of external service providers must be assessed by the chief audit executive before the IAA can use external service providers' work.
  D. The competencies of external service providers must be assessed by the chief audit executive before the IAA can use external service providers' work.

• Question 708:

  A whistleblower noti ed internal audit of a conflict of interest between an organization's employee and a major supplier. Which of the following steps should be undertaken first?

  A. Interview the employee identified by the whistleblower.
  B. Attain an understanding of the employee's role, responsibilities, and relationship with the supplier.
  C. Notify senior management, the board, and the external auditor about the alleged fraud.
  D. Review all the orders issued to the supplier to investigate potential fraud.
  B. Attain an understanding of the employee's role, responsibilities, and relationship with the supplier.

• Question 709:

  The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

  A. Demonstrated compliance with procedures.
  B. Due professional care.
  C. Engagement supervision.
  D. Employment of tools and techniques.
  C. Engagement supervision.

• Question 710:

  Who has the ultimate responsibility of implementing the organization's governance system?

  A. Stakeholders.
  B. The board.
  C. The chief executive officer.
  D. Internal auditors.
  B. The board.