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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 781:

  An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?

  A. Select those items that are most easily inspected.
  B. Employ simple random sampling.
  C. Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
  D. Sample so that the probability of a given inventory item being selected is proportional to its book value.
  D. Sample so that the probability of a given inventory item being selected is proportional to its book value.

• Question 782:

  An organization receives the most value from an internal audit activity's enterprise-wide risk assessment when the auditor:

  A. Focuses primarily on enterprise-level risks.
  B. Considers activities at all levels of the organization.
  C. Reviews special projects and new initiatives.
  D. Validates supporting financial and operational data.
  B. Considers activities at all levels of the organization.

• Question 783:

  Which of the following statements best describes internal auditors' role in fraud detection?

  A. Internal auditors' roles are similar to those performed by loss prevention managers or fraud investigators.
  B. Internal auditors' demonstration of adequate professional skepticism during an audit engagement is of paramount importance.
  C. Internal auditors should consider fraud risks in every assignment and demonstrate due care by detecting fraud instances.
  D. Internal auditors should possess a fraud-related body of knowledge, enabling them to carry out preventative and detective measures.
  B. Internal auditors' demonstration of adequate professional skepticism during an audit engagement is of paramount importance.

• Question 784:

  Which of the following statements best describes the competency requirement for an auditor regarding fraud risks encountered in an engagement execution?

  A. The auditor should be able to have comparable competencies of a person whose primary responsibility is detecting and investigating fraud.
  B. The auditor must have suficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.
  C. The auditor is not expected to have any competency requirement regarding fraud since the role of investigating and detecting fraud belongs to other functions in the organization.
  D. The auditor must be able to have an appreciation of the fundamentals of fraud detection and investigation techniques.
  B. The auditor must have suficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.

• Question 785:

  To promote a positive image within an organization, a chief audit executive (CAE) adjusted the audit plan to focus on assurance engagements that highlighted potential costs to be saved. Negative observations were to be omitted from

  engagement final communications. Which action taken by the CAE would be considered a violation of the Standards?

  I- The focus of the audit function was changed without modifying the audit charter or notifying the audit committee.

  II-. Negative observations were omitted from the engagement final communications.

  III-. Cost savings and recommendations were highlighted in the engagement final communications.

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

• Question 786:

  Which of the following best describes the relationship between governance, risk management, and control?

  A. Governance drives risk management; controls support both.
  B. Risk management operates independently of governance.
  C. Control activities determine governance outcomes.
  D. Governance is only relevant to compliance objectives.
  A. Governance drives risk management; controls support both.

• Question 787:

  When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

  A. Identifying risks to the organization's operations.
  B. Observing and analyzing controls.
  C. Prioritizing known risks.
  D. Reviewing organizational objectives.
  D. Reviewing organizational objectives.

• Question 788:

  Which of the following represents an impairment to the independence of an internal audit activity?

  A. The chief audit executive participates in the full audit committee meeting.
  B. The audit committee organizes a private session with the chief audit executive bi-annually.
  C. Senior management approves the remuneration package of the chief audit executive.
  D. The board approves the annual internal audit plan and budget.
  C. Senior management approves the remuneration package of the chief audit executive.

• Question 789:

  According to IIA guidance, which of the following is a responsibility of the internal audit activity regarding organizational governance?

  A. Establish a risk management structure and controls.
  B. Make strategic and operational decisions.
  C. Promote awareness towards appropriate organizational ethics and values.
  D. Assess the effectiveness of organizational performance management and accountability.
  D. Assess the effectiveness of organizational performance management and accountability.

• Question 790:

  Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?

  A. The quality assurance and improvement program identified several opportunities for the internal audit activity to make improvements.
  B. In lieu of an external assessment, the internal audit activity performed a self-assessment with independent external validation.
  C. During an internal quality assessment, it was identified that rotational auditors often perform consulting engagements for areas of the organization where they had previous responsibilities.
  D. External assessments are performed every five years by a competent internal audit team from the organization's parent company.
  D. External assessments are performed every five years by a competent internal audit team from the organization's parent company.