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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 771:

  Which of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?

  A. The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system.
  B. The volume of nonroutine journal entries has steadily increased over time.
  C. The database of approved suppliers has not been reviewed in the last year.
  D. The recent employee survey indicates that some employees remain unaware of the organization's whistleblower hotline.
  A. The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system.

• Question 772:

  Which of the following items of evidence is most valid to support a finding that a public utility's repair crews are sometimes required to work under unsafe conditions?

  A. Videotapes of repair crews working in a situation that is unsafe.
  B. Audio taped testimonials from repair crew members who were required to work under unsafe conditions.
  C. Reports showing increases in the number of days of sick leave for individuals on repair crews.
  D. Written and signed descriptions from repair crew members of the unsafe conditions that they have had to endure.
  A. Videotapes of repair crews working in a situation that is unsafe.

• Question 773:

  A newly hired internal auditor is most likely to need further education in the area of business acumen in which of the following situations?

  A. She was transferred from the managerial accounting department of the same organization.
  B. She was recruited from the internal audit activity of another organization that operates in a different industry.
  C. She was offered a permanent position after she had worked with the organization for two years in a temporary auditor-in-training position.
  D. She previously served on the organization's external audit team and was recruited to the internal audit activity following the current year's financial audit.
  B. She was recruited from the internal audit activity of another organization that operates in a different industry.

• Question 774:

  According to the International Professional Practices Framework, a primary purpose of evaluating the adequacy of an organization's risk management, control, and governance processes is to determine if it:

  A. Was designed to ensure compliance with policies, plans, procedures, laws, and regulations.
  B. Provides reasonable assurance that the organization's objectives will be met.
  C. Mitigates inherent risk.
  D. Assures the reliability and integrity of information used by management.
  B. Provides reasonable assurance that the organization's objectives will be met.

• Question 775:

  A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

  A. The government's independent auditor.
  B. The external auditors from an accounting firm.
  C. The internal audit activity.
  D. The agency's chief compliance officer.
  A. The government's independent auditor.

• Question 776:

  Which of the following best demonstrates the concept of "tone at the top"?

  A. The CEO enforces ethical behavior and zero tolerance for fraud.
  B. Internal auditors develop detailed procedure manuals.
  C. The HR department conducts annual training.
  D. Employees self-report policy violations.
  A. The CEO enforces ethical behavior and zero tolerance for fraud.

• Question 777:

  Which of the following internal controls is likely to prevent pollution from waste disposal before it occurs, rather than detect it after it occurs?

  A. identification of large budget variances in disposal costs for hazardous chemicals.
  B. Restricted access to environmental department files.
  C. Formal on-the-job training program conducted by the environmental staff.
  D. Samples of water and solid waste taken daily with the results recorded in a log.
  C. Formal on-the-job training program conducted by the environmental staff.

• Question 778:

  Which of the following is correct regarding the implementation of a quality assurance and improvement program for the internal audit function?

  A. The board has the primary responsibility for implementation of a robust quality assurance and improvement program for internal audit.
  B. An internal audit function that is fully complying with internal assessment of quality can confidently claim it is performing in conformity with the International Professional Practices Framework.
  C. The chief audit executive can establish a formal quality assurance and improvement program that is led by an audit manager.
  D. A quality assurance and improvement program is applicable depending on the size and complexity of the audit function.
  C. The chief audit executive can establish a formal quality assurance and improvement program that is led by an audit manager.

• Question 779:

  During an assurance engagement, an internal auditor reviews a tender inviting vendors to submit bids to supply financial services software to the organization. She suspects that the tender was tailored for the bidder who eventually won the contract. What should the auditor do next?

  A. Review payments made for the financial services software.
  B. Confront a procurement specialist with the suspicion.
  C. Submit an anonymous tip to the whistleblower hotline.
  D. Analyze technical terms and conditions of the tender.
  D. Analyze technical terms and conditions of the tender.

• Question 780:

  Which of the following best describes the role of internal control frameworks?

  A. They outline specific internal controls for an organization to implement to ensure business objectives will be achieved.
  B. They provide guidance related to internal control design and implementation to assist with the evaluation and benchmarking of business practices.
  C. They serve as a list of appropriate internal controls for auditors to ensure an organization is using best practices.
  D. They serve as a template for identifying standardized best practices in effective risk management across industries and countries.
  B. They provide guidance related to internal control design and implementation to assist with the evaluation and benchmarking of business practices.