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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 811:

  The chief audit executive (CAE) is drafting the annual internal audit plan and seeks input from senior management and the external auditor prior to submitting it for approval to the board. According to IIA guidance, which of the following statements is true regarding this scenario?

  A. The CAE's actions are likely to impair the independence of the internal audit activity.
  B. The CAE acted appropriately, and the independence of the internal audit activity was not impaired.
  C. The CAE should have developed the audit plan without outside influence to maintain objectivity.
  D. The CAE acted appropriately, as he has authority to determine who reviews and approves the audit plan.
  B. The CAE acted appropriately, and the independence of the internal audit activity was not impaired.

• Question 812:

  An internal audit activity is taking steps to promote professional development among the staff, and is in the process of implementing a mentorship program. According to IIA guidance, which of the following is important for a successful mentorship program?

  A. It is best if the mentor is the chief audit executive.
  B. Mentor meeting documentation should be retained in personnel files.
  C. It should target both new hires and highly experienced staff.
  D. Meetings with mentors should be formal and scheduled.
  C. It should target both new hires and highly experienced staff.

• Question 813:

  During an account receivables audit, an internal auditor found a significant number of input errors resulting in a $500,000 balance understatement. Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?

  A. Who?
  B. How?
  C. Why?
  D. When?
  C. Why?

• Question 814:

  An internal audit team is performing an audit of workplace accident claims. Which of the following actions by the audit team best demonstrates due professional care?

  A. Having an occupational health officer on the engagement team.
  B. Determining that the claims have been classified properly.
  C. Placing reliance on medical reports from the injured worker's doctor.
  D. Reviewing claims to ensure all accidents actually occurred in the workplace.
  A. Having an occupational health officer on the engagement team.

• Question 815:

  According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?

  A. Three months.
  B. Six months.
  C. One year.
  D. Two years.
  C. One year.

• Question 816:

  Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?

  A. Segregating duties in the payroll processes.
  B. Con rming receipt of goods or services.
  C. Performing background checks on newly hired employees.
  D. Requiring management approval for expenses.
  D. Requiring management approval for expenses.

• Question 817:

  With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?

  A. The scope and frequency of both internal and external quality assessments.
  B. The list of audit engagements that will be assessed during the year.
  C. The number and qualifications of internal audit staff members assigned to perform internal assessments during the year.
  D. The compensation structure of the qualified assessment team.
  A. The scope and frequency of both internal and external quality assessments.

• Question 818:

  Which of the following risk assessment tools would best facilitate the matching of controls to risks?

  A. Control matrix.
  B. Internal control questionnaire.
  C. Control flowchart.
  D. Program evaluation and review technique (PERT) analysis.
  A. Control matrix.

• Question 819:

  During the planning phase of an audit of suspected overbilling on contracts for security services, an internal auditor should perform all of the following except:

  A. Interview an official of the security services company to determine the cause of recent increases in billings for services.
  B. Interview the manager who requested the audit engagement.
  C. Obtain a copy of the contract between the two organizations.
  D. Prepare an engagement program.
  A. Interview an official of the security services company to determine the cause of recent increases in billings for services.

• Question 820:

  A chief audit executive used risk assessment to prepare the audit work schedule. Which of the following would be the least appropriate reason to modify the schedule?

  A. Need for coordination of audit activities with the external auditors.
  B. Request for postponement since the audit would be too complicated.
  C. Change in the relative risk of auditable activities during the year.
  D. Budget constraints or expansions.
  B. Request for postponement since the audit would be too complicated.