IIA-CIA-Part1 Practice Questions

A.  

Assess compliance with the organization ' s code of conduct

B.  

Oversee the governance and risk management processes

C.  

Initiate new organizational control processes

D.  

Provide advice on organizational governance activities

A.  

Internal audit charter.

B.  

Internal audit manual.

C.  

Audit committee charter

D.  

Human resources employee handbook.

A.  

Monitoring resources.

B.  

Compensating the chief audit executive.

C.  

Determining scope.

D.  

Allocating internal costs.

A.  

If it is an assurance engagement, accept the assignment because direct knowledge of the existing accounts payable processes wifi provide depth and add more value.,

B.  

If it is a consulting engagement, decline the assignment and ask to be reassigned, because in a consulting engagement the auditor must not assess operations for areas in which they were previously responsible.

C.  

If it is a consulting engagement, accept the assignment because direct knowledge of the existing accounts payable processes will provide depth and add more value.

D.  

If it is an assurance engagement, accept the assignment because the chief audit executive had knowledge of the internal auditor ' s previous role when this engagement was assigned.

A.  

Independence.

B.  

Confidentiality.

C.  

Objectivity.

D.  

Competency

A.  

To enable Triple Bottom Line reporting capability.

B.  

To facilitate the conduct of risk assessment.

C.  

To achieve and maintain sustainable development.

D.  

To fulfill regulatory and compliance requirements.

A.  

When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

B.  

When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

C.  

When an internal auditor disagrees with the treatment received by workers in the organization’s foreign subsidiary and alters the audit program to highlight the issue, the fails to demonstrate objectivity.

D.  

When an internal auditor continues with an audit engagement, despite the audit client’s claims that the work performed is unnecessary and redundant, he fails to demonstrate competency.

A.  

The chief audit executive is responsible for deciding the priority of consulting services in the internal audit plan

B.  

The scope of consulting services is determined primarily by the internal auditor with input from management of the area under review

C.  

The board defines the internal audit activity’s responsibilities over consulting activities

D.  

Adding value to an organization requires the internal audit activity to initiate a consulting engagement

A.  

Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.

B.  

The chief financial officer asks for the internal auditor ' s opinion regarding whether the new accounting pronouncements were properly and comprehensively adopted.

C.  

An internal auditor is assigned to assess whether a proposed new initiative to convert a customer service system would be cost-effective.

D.  

Senior management asks the internal audit activity to review compliance with customer data security regulations.

A.  

Politely decline the engagement due to a lack of qualified staff available at the time.

B.  

Complete the engagement as requested, with the best of the current staffs abilities.

C.  

Consider using employees from other departments in the organization on the audit team.

D.  

Change the scope of the testing to ensure that only available staff proficiencies are used

A.  

An internal auditor is a close friend or relative of the manager or an employee of the audit client

B.  

An internal auditor has a long-term business relationship with the audit client.

C.  

An internal auditor has an economic stake in the performance of the organization

D.  

An internal auditor is exposed to or perceived to be exposed to pressures from external parties

A.  

Internal auditors have shown they have the freedom to carry out their responsibilities.

B.  

Internal auditors have demonstrated the skills needed to carry out the audit engagement.

C.  

Internal auditors have strictly followed a formal audit process in conducting their work.

D.  

Internal auditors have demonstrated an unbiased mental attitude.

A.  

Pressure

B.  

Rationalization

C.  

Opportunity

D.  

Incentive

A.  

Mitigating risks affecting achievement of organizational objectives.

B.  

Enabling opportunities affecting achievement of organizational objectives.

C.  

Analyzing and advising regarding costs versus benefits of control activities,

D.  

Attesting to fairness of financial statements.

A.  

Residual risk.

B.  

Inherent risk.

C.  

Risk tolerance.

D.  

Risk appetite.