IIA-CIA-Part1 Practice Questions

A.  

Accept the consulting services only after receiving approval to do so from the board.

B.  

Accept the consulting services. The objectivity won't be impaired if it has been more than a year since he last worked in the area under review.

C.  

Refrain from providing the consulting service because he was responsible for that area and his objectivity will be impaired,

D.  

Disclose the potential impairment to the customer before accepting the consulting engagement

A.  

The internal audit activity conducts a self-assessment that is validated by a qualified and experienced internal auditor and then schedules a qualified, independent external assessor

B.  

The board nominates an independent individual from senior management in the organization to conduct an assessment of the internal audit activity

C.  

An external auditor conducts an audit of the organization which includes information about the internal audit activity

D.  

The chief audit executive schedules a self-assessment and the board approves the results

A.  

The CAE seeks senior management approval of the internal audit charter

B.  

The CAE obtains senior management's approval to hire staff

C.  

The CAE reports significant issues to the organization's CEO

D.  

The CAE provides the board with an annual budget for approval

A.  

Delivering fraud awareness training to employees in the department.

B.  

Segregating duties between employees in the department.

C.  

Requesting the internal audit activity perform an independent evaluation of fraud risk in the department.

D.  

Requiring accounts payable employees to sign a code of conduct awareness confirmation.

A.  

Parties are confident of the solution and are ready to defend it.

B.  

There is a high level of trust among the parties.

C.  

Resolution is time sensitive and a quick decision is necessary.

D.  

The issue is more important to one patty than the others.

A.  

An employee confided in an internal auditor and told him about fradulent activities. Although the employee asked for confidentially, the auditor disclosed her identity later during police questioning.

B.  

While auditing payroll controls, an auditor was granted temporary access to salary data. The auditor referred to the acquired information while negotiating her work conditions three months later.

C.  

Management considers an auditor to be highly competent and asked the audit to participate in an upcoming acquisition project. The auditor declined the request, calming a lack of knowledge.

D.  

An internal auditor failed to acquire the continuing education credits needed for the year and requested that. The IIA change his certification status to inactive until the completed the required education activities.

A.  

Everyone in the agency has a primary responsibility for identifying and managing risks as part of the risk management process.

B.  

The risk management process, while evaluating risk, should develop a mechanism to rank the relative importance of each risk.

C.  

The risk management process should be regularly reviewed and respond to changes in the environment, to remain relevant.

D.  

The risk management process should use a formal technique to consider the consequence and likelihood of each risk.

A.  

The auditor's demonstrated problem-solving skills.

B.  

The auditor's skills compared to those already possessed by other audit staff.

C.  

The auditor's ability to be self-motivated and a good team player.

D.  

The length and consistency of the auditor's work experience.

A.  

Entity-level

B.  

Activity-level

C.  

Transaction-level

D.  

Process-level

A.  

The chief audit executive reports administratively to the CEO.

B.  

Scope limitations are imposed on internal audits.

C.  

The internal audit activity provides assurance services for an activity for which the engagement supervisor had responsibility within the previous year.

D.  

The compensation committee of the board approves the remuneration of the chief audit executive.

A.  

To accurately conduct performance appraisals

B.  

To ensure that staff complete required continuing professional education credits annually.

C.  

To ensure that the resources needed to complete the audit plan are available.

D.  

To satisfy the audit committee requirements.

A.  

The auditor should indicate that the system of internal control is not effective.

B.  

The auditor should indicate that the system of internal control is generally effective, except for the minor issue identified.

C.  

The auditor should indicate that the system of internal control is effective.

D.  

The auditor cannot express a conclusive opinion in the audit report.

A.  

Discussions with the chief audit executive.

B.  

A listing of employee profiles and certifications.

C.  

Inquiry of external auditors.

D.  

Validation by human resources.

A.  

For multinational organizations it is important to ensure that the organizational culture is consistent at all locations

B.  

Because the chief audit executive (CAE) is part of the organizational culture, external auditors should be engaged to evaluate the control environment

C.  

If there are unresolved scope restrictions, the CAE should consider whether to pursue the audit and note the scope restrictions in the audit report

D.  

Because it will create a conflict of interest relating to the control environment, senior management should not be consulted during the audit

A.  

Supervisors are likely to reduce their level of supervision and increase span of control.

B.  

Employees are likely to be supervised closely and given little freedom.

C.  

Peer employees are likely to trust one another, but distrust management.

D.  

Employees are likely to join forces to accomplish their duties as teams.