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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 821:

  Which of the following statements is correct regarding risk analysis?

  A. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
  B. The highest risk assessment should always be assigned to the area with the largest potential loss.
  C. The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
  D. Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.
  A. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

• Question 822:

  An organization's chief audit executive (CAE) has been asked to monitor and report on any violations of the organization's code of conduct. The CAE should:

  A. Review and adjudicate all complaints.
  B. Lead the committee responsible for the oversight of the code.
  C. Develop specific procedures to ensure that the code is clearly communicated to all employees.
  D. Participate in an advisory capacity on the committee that adjudicates any violations.
  D. Participate in an advisory capacity on the committee that adjudicates any violations.

• Question 823:

  Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

  A. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
  B. CAATs are more objective than the traditional methods in interpreting the results.
  C. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.
  D. CAATs can process the results faster and thus give a higher level of assurance.
  C. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.

• Question 824:

  Which of the following is a true statement regarding whistleblowing?

  A. Whistleblowing is one of several possible ethical structures an organization can undertake to encourage ethical behavior.
  B. Whistleblowing programs help employees deal with ethical questions and instill ethical values into everyday behavior.
  C. Whistleblowers are current or former employees who are disgruntled and looking to retaliate.
  D. Whistleblowers should inform the organization about actual criminal circumstances, not assumed allegations.
  D. Whistleblowers should inform the organization about actual criminal circumstances, not assumed allegations.

• Question 825:

  Which of the following best describes the procedures used by the representatives of an organization's stakeholders to provide oversight of the processes administered by management?

  A. Governance
  B. Control
  C. Risk management
  D. Monitoring
  A. Governance

• Question 826:

  Which is the least effective form of risk management?

  A. Systems-based preventive control.
  B. People-based preventive control.
  C. Systems-based detective control.
  D. People-based detective control.
  D. People-based detective control.

• Question 827:

  As part of a fraud investigation by regulators, a court order was issued to a bank. The court order requested the chief audit executive (CAE) to provide access to a number of audit reports and workpapers, some of which included customers' confidential information such as transaction activity and other personal details. What is the appropriate response by the CAE?

  A. Reject the court order, citing a potential breach of customers' confidentiality agreement.
  B. Consult with legal counsel to determine what information to provide.
  C. Respond promptly and provide all that was requested by the court order.
  D. Seek permission from customers prior to sharing their information.
  B. Consult with legal counsel to determine what information to provide.

• Question 828:

  Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?

  A. Becoming a voting member of the organization's internal ethics council.
  B. Performing an annual organizationwide employee survey.
  C. Reviewing all departmental ethics-related policies.
  D. Conducting annual ethics training for all employees.
  C. Reviewing all departmental ethics-related policies.

• Question 829:

  In a well-developed management environment, the internal audit activity would.

  A. Report the results of audit engagements to line management as well as to senior management.
  B. Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.
  C. Interface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work.
  D. Focus on the maintenance of accounting controls (such as segregation of the duties of authorization, recording, and custody) and report results to the audit committee.
  A. Report the results of audit engagements to line management as well as to senior management.

• Question 830:

  An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.

  Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.

  Which course of action should the CAE follow?

  A. Report the communication to the organization's general counsel.
  B. Report the instruction to the chairperson of the audit committee.
  C. Inform the head of the organization that the investigation will continue as planned.
  D. Inform the external auditors of the findings and the mandate to stop investigating.
  B. Report the instruction to the chairperson of the audit committee.