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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 901:

  According to the COSO Enterprise Risk Management - Integrated Framework, which of the following statements is true regarding the role of risk appetite in an organization?

  A. Risk appetite refiects the organization's risk philosophy and influences its operating style.
  B. A high risk appetite may limit capital investment in high risk areas.
  C. Risk appetite is determined in part by how an entity allocates its resources.
  D. Risk appetite is often best measured in the same units as its related objective.
  A. Risk appetite refiects the organization's risk philosophy and influences its operating style.

• Question 902:

  Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

  A. Internal auditors may conduct a financial effectiveness engagement in a business unit at any point after being transferred from that area.
  B. Internal auditors may conclude that a business unit's current control environment is adequate and effective if the review of the prior year's workpapers and audit report supports that conclusion.
  C. Internal auditors may conduct an engagement in a business unit at any point after providing a training workshop in that area.
  D. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results.
  D. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results.

• Question 903:

  Which of the following would be an appropriate outcome of a quality assurance and improvement program in an internal audit activity?

  1. Modi cation of resources.

  2. Corrections to procedures.

  3. Changes in processes.

  4. Implementation of new technology.

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

• Question 904:

  During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of

  these reports are false and that others were isolated oversights due to understaffing.

  Which of the following tests would best help the internal auditor detect fraudulent activity?

  A. Check inventory levels.
  B. Search for gaps in check numbers.
  C. Compare vendor summaries.
  D. Review raw material purchase quantities.
  A. Check inventory levels.

• Question 905:

  According to IIA guidance, which of the following is accurate regarding the chief audit executive's (CAE's) requirement to report the results of quality assessments?

  1. The CAE must report the results of external assessments at least annually.

  2. The CAE must report the results of ongoing monitoring at least annually.

  3. The CAE must report the results of quality assessments to senior management.

  4. The CAE must report the results of quality assessments to the board.

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

• Question 906:

  Which of the following would show appropriate disclosure of nonconformance with the Standards?

  A. The chief audit executive (CAE) documented in the personnel file a critical conflict of interest involving an internal auditor on an upcoming contracting engagement.
  B. The CAE discussed with the board an issue regarding the internal audit activity performing an IT engagement without proper skills and knowledge.
  C. The CAE met with the peer review team to discuss an internal auditor's failure to meet the annual requirements for continuing professional education.
  D. The CAE revealed to operational managers that he failed to appropriately consider risks while he was developing the audit plan.
  C. The CAE met with the peer review team to discuss an internal auditor's failure to meet the annual requirements for continuing professional education.

• Question 907:

  An internal auditor is using a spreadsheet application to review a cash ow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

  A. Competent, corroborative evidence of future working capital requirements.
  B. sufficient, analytical evidence of the cash ow position at a given point of time in the future.
  C. Competent, documentary evidence of future cash ow changes within the organization.
  D. sufficient, circumstantial evidence of the future solvency of the organization.
  C. Competent, documentary evidence of future cash ow changes within the organization.

• Question 908:

  When conducting a preliminary survey, which of the following audit activities should an internal auditor complete first?

  A. Identify risks and controls intended to prevent associated losses.
  B. Write detailed audit procedures.
  C. Identify client objectives, goals, and standards.
  D. Determine relevant engagement objectives.
  C. Identify client objectives, goals, and standards.

• Question 909:

  It is important for a chief audit executive to seek formal approval from the board regarding an internal audit charter so that:

  A. The effectiveness of the internal audit activity can be measured.
  B. The status of the internal audit activity can be more clearly established.
  C. There is assurance that all internal audit activities will be completed.
  D. Improvements can be implemented in internal audit processes.
  B. The status of the internal audit activity can be more clearly established.

• Question 910:

  According to IIA guidance, which of the following most appropriately justi es the CEO's decision that the internal audit activity shall be responsible for risk management and investigation at a multinational organization?

  A. The recommendation of the parent office external auditors.
  B. The provisions of the internal audit charter.
  C. The authority of the CEO.
  D. The level of proficiency of the chief audit executive.
  B. The provisions of the internal audit charter.