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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 731:

  Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures.

  Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred.

  According to the Standards, which of the following principles did the CAE violate?

  A. Due professional care.
  B. Individual objectivity.
  C. Proficiency.
  D. Organizational independence.
  A. Due professional care.

• Question 732:

  According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

  A. Rating each engagement record to assess its relevance and accessibility for the organization's board.
  B. Controlling access to engagement records, including access by senior management.
  C. Developing retention requirements for engagement records that are consistent with organizational guidelines.
  D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
  A. Rating each engagement record to assess its relevance and accessibility for the organization's board.

• Question 733:

  An internal auditor creates a professional development plan to obtain more experience in the organization's environmental, social, and corporate governance initiatives. Which of the following would the auditor include in the plan to support these objectives?

  A. A plan to study for and obtain a certification in nonprofit management.
  B. A deadline within the individual development plan to meet the overall engagement objectives.
  C. A plan to perform a variety of engagements to develop general skills that could be used to assess environmental, social, and governance initiatives.
  D. A request to attend the organization's committee meeting that is focused on strategic community awareness.
  C. A plan to perform a variety of engagements to develop general skills that could be used to assess environmental, social, and governance initiatives.

• Question 734:

  Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization's ethical climate?

  I- Review formal and informal processes within the organization that could promote unethical behavior.

  II-. Conduct surveys of employees, suppliers, and customers regarding ethics.

  III-. Assess the employees' knowledge of and compliance with the organization's code of conduct.

  A. I only
  B. I and II only
  C. II and III only
  D. I, II, and III.
  D. I, II, and III.

• Question 735:

  According to IIA guidance, the internal audit charter should:

  A. Define the purpose, authority, and responsibility of the internal audit activity.
  B. Be reviewed only when a new CAE is appointed.
  C. Be signed exclusively by the CEO.
  D. Contain detailed engagement procedures.
  A. Define the purpose, authority, and responsibility of the internal audit activity.

• Question 736:

  An internal auditor was offered expensive tickets to a sporting event by the manager of an area that she was currently auditing. The auditor politely declined. Which of the following fundamental principles of the IIA Code of Ethics did she display?

  A. Con dentiality.
  B. Independence.
  C. Competency.
  D. Objectivity.
  D. Objectivity.

• Question 737:

  An internal auditor, when planning the tests for an assurance engagement, noted certain aspects in the area under review where he believes that he can add significant value, though they have not been included within the approved scope of the engagement. What should he do?

  A. Review the areas and present findings as value-added points in the audit report.
  B. Discuss with the chief audit executive (CAE) to change the assurance engagement to a consulting engagement.
  C. Discuss with the CAE and senior management the opportunities to improve operations in the area.
  D. Wait until annual audit planning and propose to the CAE to include it into the following year's annual audit plan.
  C. Discuss with the CAE and senior management the opportunities to improve operations in the area.

• Question 738:

  The chief audit executive needs to revise the internal audit activity's (IAA) charter. The revision must address the element of authority. Which of the following statements meets this requirement?

  A. The IAA shall identify and assess all potential risks to the operations of the organization.
  B. The IAA shall be granted access to all records relevant to the performance of its duties.
  C. Following its assessment, the IAA shall recommend risk control processes and resource management strategies.
  D. The IAA shall deliver an initial report of its findings to the organization's board within 120 days of the beginning of the engagement.
  B. The IAA shall be granted access to all records relevant to the performance of its duties.

• Question 739:

  Which of the following situations is most likely to threaten the independence of the internal audit activity?

  A. The chief audit executive reports functionally to the board and administratively to the CEO.
  B. The annual budget for the internal audit activity is approved by the chief financial officer.
  C. The internal audit activity is completely outsourced to an external service provider.
  D. The internal audit manager provides consulting services to the procurement department, where she worked during the prior year.
  C. The internal audit activity is completely outsourced to an external service provider.

• Question 740:

  Which of the following would be the most useful in developing an annual audit plan?

  A. General purpose audit software.
  B. Voting software and hardware.
  C. Flowcharting and data capture software.
  D. Risk assessment software.
  D. Risk assessment software.