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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 861:

  A chief audit executive (CAE) conducts a quality assessment at the conclusion of an audit. Which of the following would mostly likely indicate to the CAE that the engagement team lacked some of the knowledge, skills, and competencies required to successfully perform the engagement?

  A. Auditors separated the audit steps based on their individual competencies to ensure the steps were completed adequately.
  B. The audit engagement exceeded the budgeted timeline by two months due to turnover on the audit team.
  C. Auditors requested the operational management's verification and confirmation of audit documentation.
  D. Auditors provided only high-level recommendations.
  D. Auditors provided only high-level recommendations.

• Question 862:

  According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?

  1. Consult on CSR program design and implementation.

  2. Serve as an advisor on CSR governance and risk management.

  3. Review third parties for contractual compliance with CSR terms.

  4. Identify and mitigate risks to help meet the CSR program objectives.

  A. 1, 2, and 3.
  B. 1, 2, and 4.
  C. 1, 3, and 4.
  D. 2, 3, and 4.
  A. 1, 2, and 3.

• Question 863:

  When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?

  1. Findings of the last audit engagement performed.

  2. Probability of significant errors, irregularities, or noncompliance.

  3. Extent of work needed to achieve engagement objectives.

  4. Cost of the engagement versus the potential benefits.

  A. 1 and 4 only
  B. 2 and 3 only
  C. 2, 3, and 4 only
  D. 1, 2, 3, and 4
  C. 2, 3, and 4 only

• Question 864:

  Which of the following best describes the purpose of the internal audit activity within an organization's governance framework?

  A. To ensure management complies with all regulations.
  B. To provide independent assurance that risk management and control processes are operating effectively.
  C. To oversee the organization's daily operational decisions.
  D. To prepare financial statements for external reporting.
  B. To provide independent assurance that risk management and control processes are operating effectively.

• Question 865:

  While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

  A. Resource management.
  B. Coordination.
  C. Due professional care.
  D. Engagement supervision.
  C. Due professional care.

• Question 866:

  During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:

  A. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
  B. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
  C. Recommend to the chief audit executive that a fraud investigation be started.
  D. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
  B. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.

• Question 867:

  An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security audit engagement?

  A. Investigation of the physical security over access to the components of the LAN.
  B. The ability of the LAN application to identify data items at the field or record level and implement user access security at that level.
  C. Interviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.
  D. The level of security of other LANs in the company which also utilize sensitive data.
  D. The level of security of other LANs in the company which also utilize sensitive data.

• Question 868:

  According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

  A. Management principles.
  B. Computerized information systems.
  C. Internal audit standards, procedures, and techniques.
  D. Fundamentals of accounting, economics, and nance.
  C. Internal audit standards, procedures, and techniques.

• Question 869:

  Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation. What should the internal audit activity do?

  A. Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.
  B. Perform the engagement and make appropriate recommendations for policies and procedures.
  C. Turn down the engagement because recommending controls would impair future objectivity regarding this client.
  D. Turn down the engagement because an operational audit should not review policies and procedures.
  B. Perform the engagement and make appropriate recommendations for policies and procedures.

• Question 870:

  An internal auditor would most likely judge an error in an account balance to be material if the error involves:

  A. A data input function.
  B. A large percentage of net income.
  C. An unverified routine transaction.
  D. An unusual transaction for the company.
  B. A large percentage of net income.