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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 81:

  The chief audit executive (CAE) decided to conduct a self-assessment with independent validation. Which of the following is the most likely reason the CAE selected this course of action?

  A. The audit committee requested the self-assessment for quality assurance purposes.
  B. The staff auditors have the necessary knowledge and experience to conduct the review.
  C. The internal audit activity is relatively small in size and is due for an external assessment.
  D. The internal audit activity is due for a self-assessment, which is specifically required at least once every five years.
  D. The internal audit activity is due for a self-assessment, which is specifically required at least once every five years.

• Question 82:

  To encourage internal audit objectivity, which of the following is an appropriate policy the chief audit executive should establish?

  A. Internal auditors should report their audit findings directly to the audit committee.
  B. To receive an outstanding performance rating, internal auditors are required to generate audit findings.
  C. Prior to hiring a new internal auditor, the chief audit executive must determine whether the auditor owns stock in the organization.
  D. Internal auditors are permitted to audit an entity managed by a close friend or relative, as long as they notify the chief audit executive.
  A. Internal auditors should report their audit findings directly to the audit committee.

• Question 83:

  A new chief audit executive realized that the internal audit charter has not been updated in five years and only includes the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, and the Standards. What mandatory component is missing?

  A. Statement of Independence.
  B. Operating Procedures of Internal Auditing.
  C. De nition of Internal Auditing.
  D. Attestation of Quality Assurance.
  B. Operating Procedures of Internal Auditing.

• Question 84:

  Which of the following statements is true regarding corporate social responsibility (CSR)?

  A. Many of the areas explored by CSR are normally included in an audit universe or annual audit plan.
  B. Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.
  C. Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.
  D. Typically, operating management does not have a major role to play based on the public nature of reporting.
  C. Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.

• Question 85:

  Which of the following is most likely to impair the internal audit activity's independence?

  A. Undertaking audit work in an area where internal auditors lack the necessary skills.
  B. Establishing an internal audit activity without documented policies and procedures.
  C. Assigning compliance responsibilities to the chief audit executive.
  D. Concluding that an internal control is effective without first obtaining evidence.
  C. Assigning compliance responsibilities to the chief audit executive.

• Question 86:

  Which of the following actions would be considered a violation of the Standards?

  I- Drafts of engagement communications were reviewed with the audit client to obtain input. The client's comments were considered when developing the engagement final communication. II-. An auditor participated as part of a development

  team to review the control procedures to be incorporated into a major computer application under development.

  III-. Given limited resources, the chief audit executive performed a risk analysis to determine which functions to audit.

  A. II only
  B. I and III only
  C. I, II, and III.
  D. None of the above.
  D. None of the above.

• Question 87:

  What is the primary purpose of The IIA's Code of Ethics?

  A. Communicate specific activities appropriate to the performance of internal auditing.
  B. Promote ethical culture within corporations and other business organizations.
  C. Establish mandatory standards of competence for the practice of internal auditing.
  D. Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing.
  D. Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing.

• Question 88:

  Which of the following statements is true regarding control activities?

  A. Control activities are carried out by first-line and second-line functions to mitigate risks.
  B. Control activities are implemented by internal auditors to mitigate risks to an acceptable level.
  C. Control activities provide the foundation for the organization to establish its risk appetite.
  D. Control activities are a precondition to setting risk tolerance levels.
  A. Control activities are carried out by first-line and second-line functions to mitigate risks.

• Question 89:

  Due to heightened security challenges, a logistics services organization decides to exit one of the markets in which it operates. Which of the following best describes this approach to risk management?

  A. Risk avoidance.
  B. Risk reduction.
  C. Risk sharing.
  D. Risk acceptance.
  A. Risk avoidance.

• Question 90:

  Which of the following models is most appropriate for assessing the effectiveness of business processes?

  A. The Capability Maturity Model.
  B. The Three Lines Model.
  C. COSO's Internal Control -- Integrated Framework.
  D. COSO's ERM -- Integrating Strategy with Performance.
  A. The Capability Maturity Model.