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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 741:

  Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?

  A. The internal auditors review the organization's strategic plan, business plan, and policies, and have discussions with the board and senior management.
  B. The internal auditors evaluate the adequacy and timeliness of management's reporting of risk management results.
  C. The internal auditors interview staff at various levels and determine whether the organization's objectives, significant risks, and risk appetite are articulated suficiently.
  D. The internal auditors review recently completed risk assessments and related reports issued by senior management, external auditors, and other sources.
  D. The internal auditors review recently completed risk assessments and related reports issued by senior management, external auditors, and other sources.

• Question 742:

  Which of the following is true regarding internal audit role's in The IIA's Three Lines Model?

  A. As internal control is part of risk management, the internal audit role in risk management implies reduced emphasis on internal control.
  B. Internal audit can blur the distinction between the second and the third lines as long as value is added.
  C. Internal audit cannot rely on other assurance providers when opining on the effectiveness of risk management.
  D. Internal audit should be aligned with first- and second-line functions through effective communication, cooperation, and collaboration.
  D. Internal audit should be aligned with first- and second-line functions through effective communication, cooperation, and collaboration.

• Question 743:

  Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?

  1. Periodically reviewing the vendor list for unusual vendors and addresses.

  2. Segregating duties for amount purchasing, receiving, shipping, and accounting.

  3. Validating sequential integrity of purchase orders.

  4. Verifying the validity of invoices with post office box addresses.

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

• Question 744:

  A chief audit executive ensures that the internal audit activity provides annual training to management on internal controls. Where is the nature of these services defined?

  A. The annual audit plan.
  B. The audit report.
  C. The annual risk assessment.
  D. The audit charter.
  D. The audit charter.

• Question 745:

  Which of the following is a typical characteristic of an organization's risk management framework?

  A. Risk tolerance may or may not align with risk appetite, depending on whether the assessment is quantitative or qualitative.
  B. Risk is assessed on both an inherent and a residual basis.
  C. The framework addresses four organizational objective categories: strategic, historical, operational, and investment.
  D. External risks and internal opportunities are omitted from the risk assessment scope.
  B. Risk is assessed on both an inherent and a residual basis.

• Question 746:

  Internal controls belong to which risk response category?

  A. Reduction.
  B. Avoidance.
  C. Sharing.
  D. Acceptance.
  A. Reduction.

• Question 747:

  According to IIA guidance, which of the following activities would typically be examined when using the maturity model approach for assessing an organization's risk management program?

  A. Monitor and review.
  B. Performance measurement.
  C. Setting the context.
  D. Communication.
  B. Performance measurement.

• Question 748:

  Which of the following statements is correct regarding corporate compensation systems and related bonuses?

  I- A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.

  II-. Compensation systems are not part of an organization's control system and should not be reported as such.

  III-. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

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

• Question 749:

  An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

  A. Preventive controls.
  B. Detective controls.
  C. Soft controls.
  D. Directive controls.
  A. Preventive controls.

• Question 750:

  At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created. The auditor should:

  A. Proceed with the existing program since this was the original scope of work that was approved.
  B. Modify the audit program and proceed with the engagement.
  C. Consult with management to verify the interest rate change and proceed with the engagement.
  D. Determine the effect of the interest rate change and whether the program should be modi ed.
  D. Determine the effect of the interest rate change and whether the program should be modi ed.