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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 791:

  According to IIA guidance, which of the following objectives of an assurance engagement for the organization's risk management process is valid?

  A. All risks have been identified and mitigated.
  B. Risks have been accurately analyzed and evaluated.
  C. All controls are both adequate and e cient.
  D. The board is appropriately addressing intolerable risks.
  B. Risks have been accurately analyzed and evaluated.

• Question 792:

  Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

  A. Observe the process.
  B. Review the trend in receivables write-offs.
  C. Ask the credit manager about the effectiveness of the function.
  D. Check for evidence of credit approval on a sample of customer orders.
  B. Review the trend in receivables write-offs.

• Question 793:

  In order to use "Conducted in accordance with the International Standards for the Professional Practice of Internal Auditing, " an internal audit activity must:

  A. Satisfy all requirements of the International Professional Practices Framework during each internal audit engagement.
  B. Complete an external assessment of quality assurance to demonstrate compliance with the Standards.
  C. Establish a continuous quality assurance and improvement program.
  D. Have its charter reviewed and approved by management and the board.
  B. Complete an external assessment of quality assurance to demonstrate compliance with the Standards.

• Question 794:

  Which of the following policies exempli es a control weakness in the approval and oversight of credit sales?

  A. The credit department is responsible for approving shipments to all customers.
  B. The head of the sales department can authorize credit lines for large customers.
  C. The finance committee of the board of directors periodically reviews credit standards.
  D. Customers who fail to meet credit requirements must pay cash for shipments upon delivery.
  B. The head of the sales department can authorize credit lines for large customers.

• Question 795:

  An internal auditor is designing a sampling plan to test the accuracy of daily production reports over the past three years. All of the reports contain the same information except that Friday reports also contain weekly totals and are prepared by managers rather than by supervisors. Production normally peaks near the end of a month.

  If the auditor wants to select two reports per month using an interval sampling plan, which of the following techniques reduces the likelihood of bias in the sample?

  A. Estimating the error rate in the population.
  B. Using multiple random starts.
  C. Increasing the confidence level.
  D. Increasing the precision.
  B. Using multiple random starts.

• Question 796:

  Once the cause of a problem has been identified, the next step is to:

  A. Select a solution.
  B. Generate alternative solutions.
  C. Identify the problem.
  D. Consider the reaction of competitors to various courses of action.
  B. Generate alternative solutions.

• Question 797:

  Which of the following is an example of a preventive control activity for risk related to pollution caused by waste disposal?

  A. Offering an education program delivered by environmental experts.
  B. Maintaining strict security around environmental department files.
  C. Seeking legal consultation from a rm with experience in environmental law.
  D. Taking periodic samples of the area at risk and logging the results.
  A. Offering an education program delivered by environmental experts.

• Question 798:

  When a chief audit executive holds responsibility for risk management beyond internal auditing, which of the following scenarios would allow the organization's internal audit activity to provide services related to risk management?

  A. Entrusting assurance to competent professionals within the compliance function.
  B. Transferring assurance to competent professionals within the risk management function.
  C. Consolidating within the internal audit activity the responsibilities of developing the risk management function and assessing its effectiveness.
  D. Ensuring the internal audit activity only provides consulting services related to risk management.
  B. Transferring assurance to competent professionals within the risk management function.

• Question 799:

  As a result of a fraud investigation, an internal auditor will recommend the implementation of a fraud detective control. Which of the following controls would the auditor recommend?

  A. Authority limits.
  B. Whistleblower hotline.
  C. Transaction-level procedures.
  D. Background checks.
  B. Whistleblower hotline.

• Question 800:

  Which of the following statements is true with regard to the quality assurance and improvement program (QAIP)?

  A. As the head of the organization, the CEO selects and appoints the external quality assessment team to perform the QAIP reviews.
  B. The chief audit executive determines the scope and frequency of both internal and external quality assessments based on the availability and capacity of resources in accordance with the annual internal audit plan.
  C. Minutes of meetings held with senior management and the board to discuss the scope and frequency of internal and external assessments support the QAIP reporting requirement.
  D. The internal audit activity needs to assess whether each engagement on the annual internal audit plan is conducted in conformance with the Standards.
  D. The internal audit activity needs to assess whether each engagement on the annual internal audit plan is conducted in conformance with the Standards.