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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 871:

  Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?

  1. Reappraising risks levels.

  2. Providing accurate information to management.

  3. Marketing the internal audit activity.

  4. Planning safeguards for assets in high-risk areas.

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

• Question 872:

  An internal auditor is reviewing employee travel expenses from the previous six months for fraud. Which of the following tests would best detect instances where personal travel has been claimed?

  A. Verifying whether claims have been properly authorized for payment.
  B. Verifying whether claims are properly supported by invoices or other documents.
  C. Con rming that all claims are within the limits of the organization's travel policy.
  D. Reconciling claims against business trip requests that were approved by supervisors.
  D. Reconciling claims against business trip requests that were approved by supervisors.

• Question 873:

  Which of the following statements is true regarding assurance services provided to clients outside of the organization?

  A. Assurance services for outside clients are not covered under the internal audit charter.
  B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
  C. The nature of assurance services for outside clients should be defined in the internal audit charter.
  D. The nature of assurance services for outside clients is the same as for internal clients.
  C. The nature of assurance services for outside clients should be defined in the internal audit charter.

• Question 874:

  Which of the following results from computer assisted audit techniques provides the most significant indication that additional audit work is needed?

  A. Several exact matches were found when vendor and employee addresses were compared.
  B. The sum of credit entries on the bank statement did not equal the sum of collections for the same period.
  C. Sorting the check register file by vendor name identified missing sequences of check numbers.
  D. Matching the accounts payable transaction file with the purchase order request file resulted in many differences between the person requesting the purchase
  A. Several exact matches were found when vendor and employee addresses were compared.

• Question 875:

  Which of the following is a detective control?

  A. An organization requires certain employees who occupy sensitive positions to sign attestation to the code of conduct on an annual basis.
  B. A compliance specialist carries out quarterly reviews of an organization's compliance with regulatory requirements.
  C. A front desk officer in an organization requires that visitors are identified by the host before access is granted.
  D. An internal audit activity deploys audit management policies and procedures for team members.
  B. A compliance specialist carries out quarterly reviews of an organization's compliance with regulatory requirements.

• Question 876:

  An internal auditor is assessing the risk of employees falsifying reimbursement requests for business-related meals or travel. Which of the following procedures would the internal auditor most likely perform first?

  A. Review the supplemental documentation provided for a sample of reimbursement requests.
  B. Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
  C. Determine whether or not the payroll/accounting department has been subject to regular review.
  D. Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
  D. Establish a flowchart of the payroll/accounting functions that include any controls currently in place.

• Question 877:

  An internal auditor is compiling statistics of vendors. She notices a few vendors with no tax and phone numbers. What should the auditor do with her finding?

  A. Blacklist those vendors and forbid further transactions with them.
  B. Report those vendors to anti-money laundering authorities.
  C. Scrutinize those vendors by running a check in a trade registry.
  D. Label those vendors as front companies and notify accounting clerks.
  C. Scrutinize those vendors by running a check in a trade registry.

• Question 878:

  An organization's project managers regularly travel to various destinations. Although plane tickets and accommodations are booked and paid for by the organization, project managers can still submit for reimbursement any travel-related receipts for transportation, dining, and other miscellaneous costs. Which of the following fraud schemes should the auditor test for?

  A. Multiple and overstated expenses.
  B. Unauthorized expenditures.
  C. Improper period recognition of expenses.
  D. Concealed liabilities and expenses.
  A. Multiple and overstated expenses.

• Question 879:

  Organizations that use a highly structured command-and-control management approach are at greater risk of:

  A. Delayed response due to the inability to reach consensus among decision makers.
  B. Negative consequences that result from lower-level staff's unwillingness to confront errors by superiors.
  C. Erosion of staff morale due to perceptions of ineffective leadership.
  D. Waste and abuse of organizational resources resulting from management override of controls.
  B. Negative consequences that result from lower-level staff's unwillingness to confront errors by superiors.

• Question 880:

  An internal auditor is preparing a draft observation based on her assessment of an accounts payable process. Which of the following is a process recommendation?

  A. Authorization policy for accounts payable was not followed for payments above $10,000.
  B. Authorization policy requires two levels of approval for all payments above $10,000.
  C. Because of non-compliance with authorization policy, inappropriate payments may be made for payments above $10,000.
  D. The accounts payable authorization actions for all payments should be automated.
  D. The accounts payable authorization actions for all payments should be automated.