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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 921:

  Which of the following enhances the independence of the internal audit activity?

  A. The chief audit executive (CAE) approves the annual internal audit plan.
  B. The CAE administratively reports to the board.
  C. The audit committee approves the CAE's annual salary increase.
  D. The chief executive officer approves the internal audit charter.
  C. The audit committee approves the CAE's annual salary increase.

• Question 922:

  Internal auditors exercise judgment about the type and amount of information to be collected. The primary purpose of this judgment is to:

  A. Eliminate the risk of drawing incorrect conclusions.
  B. Minimize the cost of the audit engagement.
  C. Comply with the Standards.
  D. Provide a sound basis for audit observations and recommendations.
  D. Provide a sound basis for audit observations and recommendations.

• Question 923:

  Which of the following is the responsibility of an internal auditor?

  1. Assist operating management in implementing audit recommendations.

  2. Provide management with value-added analysis to improve operations.

  3. Become an advocate for changes to the internal audit activity charter.

  4. Disclose non- financial risks that may be identified during the course of an engagement.

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

• Question 924:

  In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers accounts?

  A. Invoices are not being mailed to customers.
  B. An employee is tampering with customer checks.
  C. Employees are submitting fraudulent expense reports.
  D. The customer service department is not forwarding complaints to the accounts receivable department.
  B. An employee is tampering with customer checks.

• Question 925:

  Internal auditors must exercise due professional care by considering which of the following?

  1. Cost of assurance in relation to potential benefits.

  2. Adequacy and effectiveness of governance, risk management, and control processes.

  3. Management's competency level in the area being evaluated.

  4. Probability of significant errors, fraud, or noncompliance.

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

• Question 926:

  An internal auditor notes that inventory counts are conducted on Mondays only and that all documentation is on paper as there are no computers in the underground warehouses. Also, she notices that the person responsible for receiving the goods is the same one who distributes materials and spare parts. Finally, she sees that spare parts are written off and taken by the heads of mining units to different underground locations to wait for their turn to be installed. Which of the described findings requires more consideration from a fraud risk perspective?

  A. The job responsibilities of the warehouse employee compromise segregation of duties.
  B. Spare parts are written off before their actual usage and installation.
  C. Warehouse management is conducted on paper and requires further investigation.
  D. The inventory counts take place on specific days of the week for no apparent reason.
  B. Spare parts are written off before their actual usage and installation.

• Question 927:

  In which of the following situations would shbone diagrams be most useful?

  A. The problem is complicated and the root cause is unknown.
  B. Team members cannot effectively communicate with each other.
  C. The team is too small for brainstorming to be effective.
  D. The team consists of experts who can resolve problems without much difficulty.
  A. The problem is complicated and the root cause is unknown.

• Question 928:

  Which of the following can be used to minimize employees' resentment of controls?

  A. Making sure employees are exempt from participating in control creation.
  B. Implementing controls without lengthy explanations of their purpose.
  C. Developing general constricting controls rather than detailed ones.
  D. Not using controls to achieve goals.
  C. Developing general constricting controls rather than detailed ones.

• Question 929:

  Which of the following are typical management control activities?

  A. Reconciliation, planning, and inquiry.
  B. Reconciliation, planning, and documentation.
  C. Reconciliation, inquiry, and documentation.
  D. Planning, inquiry, and documentation.
  C. Reconciliation, inquiry, and documentation.

• Question 930:

  An engagement supervisor noted that an internal auditor's personal relationship with a process owner resulted in the auditor providing a favorable and partial assessment during an audit within that process owner's area. According to IIA guidance, which of the following should be used to manage this impairment?

  A. An internal audit charter.
  B. An employee disciplinary policy.
  C. A functional audit committee.
  D. A functional reporting placement.
  A. An internal audit charter.