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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 801:

  Which of the following practices is generally most effective to protect internal audit objectivity?

  A. Ensuring regular documentation of auditor skills and experience in the workpapers.
  B. Basing performance evaluations heavily on customer satisfaction surveys.
  C. Prohibiting auditors from accepting gifts from audit clients or potential clients.
  D. Ensuring that auditors have a balance of both operational and internal audit responsibilities.
  C. Prohibiting auditors from accepting gifts from audit clients or potential clients.

• Question 802:

  Which of the following describes the primary objective when implementing a risk management framework?

  A. To achieve planned profitability for business expansion.
  B. To enhance an organization's confidence in achieving strategy.
  C. To strengthen corporate governance standards.
  D. To eliminate business risks and uncertainties.
  B. To enhance an organization's confidence in achieving strategy.

• Question 803:

  According to the Standards, which of the following statements about effective governance is not true?

  A. It relies on internal controls to be effective.
  B. It considers risk when setting strategy.
  C. Its structures are distinct from risk management structures.
  D. It is implemented by the board or an equivalent body.
  C. Its structures are distinct from risk management structures.

• Question 804:

  An organization's sales professionals are potentially abusing the use of cellular phones, resulting in an alarming increase in telephone expenses. Which of the following controls is least likely to curb this abuse?

  A. Developing periodic reports to management that show type, length, and number of calls per sales professional, with related totals and comparisons.
  B. Requiring sales professionals to pay monthly cellular phone bills and subsequently submit only business calls for reimbursement using an expense report process.
  C. Requiring sales managers to approve monthly bills prior to payment, explain budget variances, and explain increases from previous periods.
  D. Requiring authorization of the cellular phone bill payment by the manager of the telecommunications department.
  D. Requiring authorization of the cellular phone bill payment by the manager of the telecommunications department.

• Question 805:

  Which type(s) of assessments in an internal audit activity's quality assurance and improvement program requires ongoing monitoring to evaluate internal audit activity's efficiency and effectiveness?

  A. Neither internal nor external assessment.
  B. Internal assessment.
  C. Both internal and external assessment.
  D. External assessment.
  B. Internal assessment.

• Question 806:

  Which of the following statements is correct regarding disclosure of conformance or nonconformance with the Standards?

  A. An internal audit activity that has been in existence fewer than five years cannot indicate that it is operating in conformance with the Standards because it has not yet undergone an external assessment.
  B. Once an external assessment validates conformance with the Standards, the internal audit activity may continue to use the statement until the next external assessment.
  C. If it has been more than five years since the last external assessment was conducted, the internal audit activity must cease indicating that it operates in conformance with the Standards.
  D. The chief audit executive must disclose every instance of noncompliance with the Code of Ethics or the Standards.
  B. Once an external assessment validates conformance with the Standards, the internal audit activity may continue to use the statement until the next external assessment.

• Question 807:

  Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?

  A. One of the organization's senior internal auditors owns a side business, though to date, no sales have been made to this business.
  B. The annual internal audit plan includes performance audits of main business processes, but reviews of high-risk development projects were not considered.
  C. The internal audit activity committed to carrying out an audit of documentation on investment hedging, and a hedging expert was contracted to assist with the engagement.
  D. A periodic quality self-assessment of the internal audit activity identified a number of improvement areas with regard to key performance indicators.
  D. A periodic quality self-assessment of the internal audit activity identified a number of improvement areas with regard to key performance indicators.

• Question 808:

  Which of the following would be the most suitable internal control framework for an organization to adopt?

  A. A framework that specifies common best practices for an organization to evaluate and benchmark.
  B. A framework that specifies correct and incorrect business methodologies.
  C. A framework with precise specifications for how controls and processes should be employed.
  D. A framework that offers step-by-step guidance for remedial action for all organization types.
  A. A framework that specifies common best practices for an organization to evaluate and benchmark.

• Question 809:

  The main reason to establish internal controls in an organization is to:

  A. Encourage compliance with policies and procedures.
  B. Safeguard the resources of the organization.
  C. Ensure the accuracy, reliability, and timeliness of information.
  D. Provide reasonable assurance on the achievement of objectives.
  D. Provide reasonable assurance on the achievement of objectives.

• Question 810:

  An internal auditor is planning an operational audit of the accounts payable function. Which of the following best mitigates the risk of the organization being a victim of disbursement fraud by employees?

  A. Accounts payable payment records are checked against supplier invoices.
  B. Accounts payable are aged by vendors.
  C. The accounts payable trial balance is reconciled to the general ledger.
  D. The accounts payable function is properly segregated from the cash custody function.
  D. The accounts payable function is properly segregated from the cash custody function.