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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 851:

  Which of the following actions should the organization's governing body perform to provide the most effective governance over the organization's culture?

  A. Coordinate control activities.
  B. Provide direction.
  C. Design key controls.
  D. Deliver assurance.
  B. Provide direction.

• Question 852:

  A chief audit executive (CAE) of a major retailer has engaged an independent rm of information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists' work only if it is:

  A. Performed in accordance with the terms of the contract.
  B. Carried out in accordance with the Standards.
  C. Performed under the supervision of the information technology department.
  D. Carried out using standard review procedures for retailers.
  B. Carried out in accordance with the Standards.

• Question 853:

  Which of the following is an appropriate role for the internal audit activity?

  A. Ensuring the organization's key risks are managed through appropriate controls.
  B. Assisting the organization in maintaining effective controls.
  C. Implementing new controls to promote continuous improvement.
  D. Validating control assessments performed by the external auditor.
  B. Assisting the organization in maintaining effective controls.

• Question 854:

  According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?

  A. Benchmarking of the internal audit activity's practices and performance.
  B. Report of internal assessment results, response plans, and outcomes.
  C. Analysis of performance metrics such as cycle times.
  D. Self-assessments and surveys of stakeholder groups.
  C. Analysis of performance metrics such as cycle times.

• Question 855:

  The audit committee has asked the chief audit executive (CAE) to assist in the selection of a new external audit firm. Which of the following is an appropriate action by the CAE?

  A. The CAE and two managers from the audit staff review the bids and select one rm to meet with the audit committee for the committee's approval.
  B. The CAE develops a formal set of criteria for the audit committee to use in selecting the external auditor.
  C. The CAE, chief financial officer, and controller review the bids, interview two firms, and recommend one of the two firms to the audit committee for its approval.
  D. The CAE declines to participate in the process because providing this assistance would result in compromising the internal audit activity's objectivity.
  B. The CAE develops a formal set of criteria for the audit committee to use in selecting the external auditor.

• Question 856:

  An internal auditor is reviewing the results of an employee survey at a mining company. Which of the following would alert the auditor to a potential ethics issue?

  A. Women account for 20% of the total number of employees in the company.
  B. Thirty percent of employees feel confident in raising concerns without a fear of retaliation.
  C. Most employees believe that transparent and fair decision-making forms the basis of business ethics.
  D. Employees with longer work experience believe that they deserve more privileges than new hires.
  D. Employees with longer work experience believe that they deserve more privileges than new hires.

• Question 857:

  Which of the following would be a preventive control for helping to manage fraud in an organization?

  A. Reviews of reports to determine which issued payments lack evidence of supervisory review.
  B. A monthly review of new vendors performed by management for reasonableness.
  C. Bank reconciliations performed on a monthly basis by the accounting department.
  D. A code of conduct and whistleblower policy that must be signed by all employees annually.
  D. A code of conduct and whistleblower policy that must be signed by all employees annually.

• Question 858:

  According to IIA guidance, which of the following best describes the purpose of the internal audit activity's quality assurance and improvement program?

  A. To evaluate whether internal auditors apply due professional care.
  B. To ensure the internal audit activity conforms with the Standards and adds value to the organization.
  C. To assess the competence of the internal audit staff.
  D. To measure the cost-effectiveness of audit engagements.
  B. To ensure the internal audit activity conforms with the Standards and adds value to the organization.

• Question 859:

  The internal audit activity's role in the risk assessment and management processes of an organization is determined by the:

  A. Board of directors.
  B. Chief audit executive.
  C. Risk management department.
  D. External auditors.
  A. Board of directors.

• Question 860:

  The organization's chief audit executive (CAE) is planning an immediate assurance engagement following several product recalls. However, the internal audit staff does not have the required knowledge and experience to adequately assess all the relevant processes and procedures. According to IIA guidance, which of the following actions should the CAE take under these circumstances?

  A. Use the current available resources to conduct the review and exclude those procedures that can't currently be performed.
  B. Implement an accelerated training plan to provide the audit staff with the necessary skills and knowledge to conduct the engagement.
  C. Encourage management to accept the assessed risk until the internal audit activity is able to adequately review the area.
  D. Obtain assistance for the audit team from other internal assurance providers who possess the requisite expertise in the area.
  D. Obtain assistance for the audit team from other internal assurance providers who possess the requisite expertise in the area.