IIA-CIA-Part1 Practice Questions

A.  

Industry knowledge

B.  

Project management

C.  

Leadership skills

D.  

Risk assessments

A.  

The auditor testifies in front of a jury about an organization's fraudulent financial practices after receiving a subpoena

B.  

Management has agreed to remedy a significant control deficiency, so the auditor excludes the deficiency from the engagement report

C.  

The chief audit executive declines an assurance engagement in IT because the internal audit activity is not proficient in IT

D.  

The auditor communicates an audit opinion on fraud risk during an audit engagement’s preliminary fraud risk assessment

A.  

The scope and frequency of both internal and external quality assessments.

B.  

The list of audit engagements that will be assessed during the year.

C.  

The number and qualifications of internal audit staff members assigned to perform internal assessments during the year.

D.  

The compensation structure of the qualified assessment team.

A.  

Integrity

B.  

Proficiency

C.  

Due Professional Care

D.  

Competency

A.  

The internal auditor and engagement client established an understanding that the scope would include the new payroll system project.

B.  

The payroll system engagement was scheduled as a result of internal audit's risk-based annual planning process.

C.  

The internal auditor concluded that the engagement objectives would include assessing the effectiveness of the payroll process controls.

D.  

The internal auditor acknowledged the engagement client’s satisfactory performance in the final engagement results that were communicated to senior management and the board.

A.  

Ask the inventory manager to determine whether the work planned would be sufficient to meet the consulting engagement objectives.

B.  

Ensure that the method used to communicate the results of the consulting engagement is consistent with the board's preferred method.

C.  

Determine whether the benefits to be derived from the requested assessment would exceed the cost of providing the consulting service.

D.  

Use email and telephone conversations to convey the results of the engagement, as these may prove to be the most efficient methods for communicating.

A.  

An internal auditor compared vendor addresses to employee home addresses.

B.  

An internal auditor used analytical software to trace all disbursements processed on weekends.

C.  

An internal auditor tried to circumvent the logical access controls of the purchasing system.

D.  

An internal auditor recovered emails of an employee who was suspected of fraudulent activities

A.  

Conclude the engagement and inform management that fraud has occurred

B.  

Perform further testing to verify the existence of fraud.

C.  

Suspend the engagement and undertake a formal fraud investigation.

D.  

Notify the board of the possible fraud immediately

A.  

A procurement manager does not have the expected academic credentials for his position.

B.  

A salesperson frequently complains about the organization's policy on sales commissions.

C.  

The accounts payable supervisor has requested advances against her monthly salary on several occasions.

D.  

A financial accountant is absent from work frequently due to regular medical procedures.

A.  

Incorporate the basic criteria of internal audit competency into job descriptions

B.  

Complete a periodic skills assessment of the internal audit activity

C.  

Develop a competency or skill assessment tool.

D.  

Perform benchmarking with competitors to learn what other firms are doing related to this topic

A.  

Reviewing the number of anonymous hotline allegations against employee complaints.

B.  

Surveying employees to determine whether they are aware of the hotline.

C.  

Benchmarking the average time to investigate hotline complaints.

D.  

Tracking the number of hotline allegations per total number of employees.

A.  

The objectives and goals of management

B.  

The process used by the CAE to manage the organization's internal controls

C.  

The nature of services that the internal audit activity will provide to external third parties

D.  

The responsibilities of the audit committee

A.  

An internal audit manager collaborates with senior management to provide misleading information to government authorities.

B.  

An internal audit manager provides sample audit reports and workpapers to a friend without obtaining prior approval

C.  

An internal audit manager carries out a technical audit request without seeking expert opinion, despite a lack of the requisite skills.

D.  

An internal audit manager assigned to audit a sales process failed to reveal that the process owner is a relative

A.  

Ensuring a fully executed assurance role for the internal audit activity.

B.  

Conducting risk evaluations that include ranking the relative importance of each risk.

C.  

Establishing a risk management function and appointing a chief risk officer.

D.  

Conducting a combination of ongoing risk reviews and individual evaluations.

A.  

Report the non-compliance cases to the board of directors.

B.  

Recommend that management update its policies and procedures based on the circumstances.

C.  

Investigate the rationale for management's actions.

D.  

Recommend those employees to report the cases through the designed whistleblowing channel for the appropriate treatment.