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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 841:

  Which of the following represents a defficiency in the control environment?

  A. The sales department has failed to achieve targets for the last nine months.
  B. Employees report suspicious activity by calling the organization's ethics hotline.
  C. Hiring procedures do not include background checks for prospective job candidates.
  D. Management reports three potential ethics issues to the board of directors.
  C. Hiring procedures do not include background checks for prospective job candidates.

• Question 842:

  During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

  A. Report the deviations immediately to the audit committee.
  B. Gather additional information to determine the cause of the deviations.
  C. Conclude that the budget was unreasonably set and accept the deviations.
  D. Perform alternative forms of analytical procedures which provide no deviations.
  B. Gather additional information to determine the cause of the deviations.

• Question 843:

  Which of the following is the most effective way any organization can ensure proper governance over its internal controls?

  A. By adopting the best practices of similar organizations in the industry.
  B. By adjusting their internal control framework as business practices evolve.
  C. By introducing the universally accepted COSO internal control framework.
  D. By encouraging the internal audit activity to provide training on internal controls.
  C. By introducing the universally accepted COSO internal control framework.

• Question 844:

  What is the primary purpose of a shbone diagram?

  A. To depict the areas of responsibility for departments in an organization.
  B. To plan and control complex projects, such as internal audits.
  C. To represent the frequencies of adverse conditions in a given process.
  D. To identify the possible causes of adverse conditions.
  D. To identify the possible causes of adverse conditions.

• Question 845:

  An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

  A. The periodic rotation of procurement officers' assignments to supplier accounts.
  B. A pre-award financial capacity analysis of suppliers.
  C. An automated computer report, organized by supplier, of any invoices for the same amount.
  D. Periodic inventories of kiln-dried wood at the organization's warehouse.
  A. The periodic rotation of procurement officers' assignments to supplier accounts.

• Question 846:

  Which of the following is a second line of defense in effective risk management and control?

  A. Purchasing department.
  B. Compliance department.
  C. Credit department.
  D. Internal audit department.
  B. Compliance department.

• Question 847:

  After completing a net present value (NPV) calculation on a proposed project, an analyst explores the change in NPV with changes in the interest rate. This additional analysis is referred to as:

  A. Decision analysis.
  B. Simula-tion.
  C. Sensitivity analysis.
  D. Variance analysis.
  C. Sensitivity analysis.

• Question 848:

  A newly hired internal auditor is performing an engagement that requires significant IT expertise that he does not possess. If the auditor does not alert the chief audit executive about his lack of expertise and decides to perform the engagement anyhow, which principle of the IIA's Code of Ethics would he violate?

  A. Due professional care.
  B. Competency.
  C. Effective communication.
  D. Professionalism.
  B. Competency.

• Question 849:

  Which of the following engagements would be considered an appropriate consulting service?

  A. The internal audit activity of a commercial bank routinely performs branch audits for compliance with regulations.
  B. The internal audit activity participates in a cosourcing arrangement with an IT audit firm to test information systems security.
  C. The internal audit activity facilitates biannual training of the risk management team in risk identification methodologies.
  D. The internal audit activity partners with external auditors annually to complete fieldwork required as a part of the external audit exercise.
  D. The internal audit activity partners with external auditors annually to complete fieldwork required as a part of the external audit exercise.

• Question 850:

  Which of the following statements regarding segregation of duties is true?

  A. When evaluating an organization's policy on segregation of duties, employee competence does not need to be considered.
  B. An organizational chart provides an accurate definition of segregation of duties.
  C. A restrictive segregation-of-duties policy can help improve an organization's communication.
  D. Policies on segregation of duties in information systems must recognize the difference between logical and physical access to assets.
  D. Policies on segregation of duties in information systems must recognize the difference between logical and physical access to assets.