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

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 931:

  Which of the following written documents typically offers the best evidence that internal auditors exercise due professional care in conformance with the Standards?

  A. Internal audit charter.
  B. Workpaper.
  C. Audit report.
  D. Code of ethics.
  B. Workpaper.

• Question 932:

  Which of the following statements regarding organizational governance is not correct?

  A. An effective internal audit function is one of the four cornerstones of good governance.
  B. Those performing governance activities are accountable to the customer.
  C. Accountability is one of the key elements of organizational governance.
  D. Governance principles and the need for an internal audit function are applicable to governmental and not-for-pro t activities.
  B. Those performing governance activities are accountable to the customer.

• Question 933:

  Which of the following is a key responsibility of the board regarding governance?

  A. Reviewing and approving audit workpapers.
  B. Setting the tone at the top and overseeing ethical behavior.
  C. Approving all management procedures.
  D. Conducting operational reviews.
  B. Setting the tone at the top and overseeing ethical behavior.

• Question 934:

  A financial services organization requested that the chief audit executive (CAE) undertake a consulting engagement on value for money over investments in major applications. The CAE accepts the engagement request despite the fact that the internal audit activity lacks requisite expertise. Which of the following principles of The IIA's Code of Ethics is relevant in this situation?

  A. Integrity.
  B. Objectivity.
  C. Con dentiality.
  D. Competency.
  D. Competency.

• Question 935:

  Risk within an internal audit engagement is defined as the:

  A. Probability that a balance or class of transactions and related assertions contain misstatements that could be material to the financial statements.
  B. Uncertainty of an event occurring that could have an impact on the achievement of objectives.
  C. Failure to adhere to organizational policies, plans, and procedures, or the failure to comply with relevant laws and regulations.
  D. Failure to accomplish established objectives and goals for operations or programs.
  B. Uncertainty of an event occurring that could have an impact on the achievement of objectives.

• Question 936:

  Feedback on engagements from audit clients, annual benchmarking of the internal audit activity's (IAA's) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?

  A. Completing internal assessments.
  B. Determining the level of residual risk.
  C. Identifying conflicts of interest.
  D. Developing control processes.
  A. Completing internal assessments.

• Question 937:

  Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

  A. Vendor fuel invoices that have been reconciled to inventory records.
  B. Time cards completed by aircraft cleaning and fueling crews.
  C. Observation of selected aircraft while they are being refueled and cleaned.
  D. Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.
  C. Observation of selected aircraft while they are being refueled and cleaned.

• Question 938:

  An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

  A. Outsource the audit engagement to a qualified external auditing rm without burdening the audit committee with the decision.
  B. Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.
  C. Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
  D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.
  D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

• Question 939:

  Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

  A. The contractor's certification that it has not incurred any waste or inefficiencies.
  B. A walk-through of the contractor's manufacturing and development facilities.
  C. An examination of the nature of contract expenses incurred.
  D. A comparison of contract expenses with those of similar projects.
  A. The contractor's certification that it has not incurred any waste or inefficiencies.

• Question 940:

  Which of the following is not part of the ve-attribute approach to developing documentation for an audit observation?

  A. Condition.
  B. Effect.
  C. Management response.
  D. Recommendation.
  C. Management response.