IIA-CIA-Part1 Practice Questions

A.  

Each internal auditor must hold one or more certifications in the area of fraud and seek out continuing professional development related to fraud detection and fraud investigation.

B.  

Each internal auditor must have sufficient knowledge of IT risks and controls, and be able to evaluate the risk of fraud and the manner in which it is managed by the organization.

C.  

Each internal auditor on the engagement team must possess the same level of knowledge, skills, and other competencies as other auditors on the engagement team.

D.  

Each internal auditor must be paired, by the chief audit executive, with an individual who possesses the knowledge, skills, or other competencies required to complete the audit.

A.  

The organization’s code of conduct.

B.  

The organization’s competition.

C.  

The organization’s code of ethics.

D.  

The organization’s culture

A.  

Collect relevant audit evidence and begin working with management of the area to investigate the fraud.

B.  

Inform the chief audit executive and meet with the suspect to determine whether the person committed fraud.

C.  

Document supporting information and recommend an investigation to the appropriate audit management.

D.  

Evaluate existing controls and implement new procedures to mitigate the opportunity for fraud.

A.  

Entity-level

B.  

Activity-level

C.  

Transaction-level

D.  

Process-level

A.  

The length and consistency of the auditor ' s work experience

B.  

The auditor ' s demonstrated problem-solving skills

C.  

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

D.  

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

A.  

Internal audit activity.

B.  

Operating management.

C.  

Senior management.

D.  

Board of directors.

A.  

Auditor competency.

B.  

Internal audit independence.

C.  

Auditor objectivity.

D.  

Engagement scope.

A.  

Internal audit designs and implements the organization ' s controls to help manage risk.

B.  

Internal audit sets the organization ' s risk tolerance and promotes awareness throughout the organization.

C.  

Internal audit assesses whether the organization ' s risk management processes are effective.

D.  

Internal audit is responsible for safeguarding the organization ' s assets and preventing loss from occurring.

A.  

Due professional care was not applied because no additional work should have been performed unless there was actual evidence of fraud

B.  

Due professional care was not applied because the extended scope resulted in no issues being identified, while fraud actually existed

C.  

Due professional care was applied as the internal auditor modified the scope based on reasonable judgment, despite the additional cost of resources

D.  

Due professional care was applied as the cost of audit resources should not be a determining factor in the degree of testing undertaken

A.  

Senior management provides oversight for the organization ' s ethical climate.

B.  

Senior management promotes an ethical culture in the organization.

C.  

Senior management assesses the effectiveness of the organization’s ethical programs.

D.  

Senior management reviews major ethical policies in the organization for compliance

A.  

Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team.

B.  

Perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter

C.  

Use an internal audit charter template from another organization that operates within the same industry.

D.  

Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved.

A.  

Internal assessments rely solely on the review of completed audit engagements for demonstrated performance

B.  

The chief audit executive is responsible for assessing the suitability and competence of an external assessor.

C.  

QAIP results must first be discussed with the board and approval obtained for distribution to senior management

D.  

At the board ' s discretion, the frequency of external assessments can exceed the five-year guideline

A.  

Decline, if it is a consulting engagement, because she recently worked in the organization ' s accounting department.

B.  

Accept, if it is an assurance engagement, as she has been out of the department long enough to not impair objectivity.

C.  

Inform the accounting department that the engagement can take place in the future, once she has been removed from accounting for a longer period of time.

D.  

Accept, if it is a consulting engagement with agreed-upon scope and services to be provided by the internal audit activity.

A.  

Require contractors to submit completed and signed work acceptance sheets

B.  

Utilize unmanned drones to conduct regular flights and photo shoots over the areas where work is performed

C.  

Reconcile invoices and work acceptance sheets submitted by contractors

D.  

Compare actual payments to contractors with budgeted values and analyze discrepancies

A.  

Compare the design of the organization ' s ethical programs with best practices.

B.  

Verify that a code of conduct and related policies exist and are communicated.

C.  

Use employee surveys to assess whether ethical programs are achieving desired outcomes.

D.  

Compare the cost of the ethical programs with the achieved outcomes.