IIA-CIA-Part1 Practice Questions

A.  

The result of a quality assurance and improvement program confirm there are no material issues.

B.  

Engagement workpapers are retained by the internet audit activity according to the retention and deletion policy.

C.  

The internal audit activity receives positive feedback from the managers of the areas that were under review.

D.  

internal auditors demonstrate proficiency by maintaining professional internal audit certifications

A.  

Determining whether any opportunity exists for senior executives to misappropriate property or funds

B.  

Planning and executing fieldwork In a complete and timely manner to identify all significant risks

C.  

Verifying whether the board of directors has implemented effective internal controls

D.  

Having senior management determine whether the degree of work planned is sufficient to meet engagement objectives

A.  

Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.

B.  

The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

C.  

Security cameras that monitor cash handling at the register are not functioning.

D.  

The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff

A.  

An evaluation of the current performance and compensation program.

B.  

The performance of background investigations on all existing employees.

C.  

The availability of fraud training to all employees.

D.  

The availability of an employee whistleblower hotline

A.  

Management quality assurance activities

B.  

Internal audit fraud prevention and detection activities

C.  

Management and supervisory activities

D.  

External audit quality assurance activities

A.  

Checking for invoice amounts that do not match that of the purchase order.

B.  

Searching for identical invoice numbers and payment amounts.

C.  

Running checks to uncover post office box addresses matching employee addresses.

D.  

Comparing prices across vendors to see whether one vendor is unreasonably high.

A.  

Coaching management in responding to risks.

B.  

Implementing risk responses on management ' s behalf.

C.  

Imposing risk management processes.

D.  

Setting the risk appetite.

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.  

The chief audit executive (CAE) reports functionally to the CEO.

B.  

The CAE ' s compensation is approved by the chief financial officer.

C.  

The CAE ' s appointment Is determined by the CEO

D.  

The CAE reports administratively to the chief operating officer.

A.  

Conformance with the Standards.

B.  

Nonconformance with the Standards

C.  

Unable to determine conformance with the Standards.

D.  

Partial conformance with the Standards

A.  

The risk management function has the sole responsibility for identifying and managing risks in all departments

B.  

Risk management is a core responsibility of the internal audit activity

C.  

The internal audit activity should consider the organization’s maturity, structure, and the competitive environment to establish the organization’s risk appetite

D.  

The internal audit activity may use a risk management or control framework to assist in risk identification

A.  

Remind the chief audit executive (CAE) that he is responsible for her continuing professional development and needs to address the issue

B.  

Contact her professional organization and explain that she does not need formal professional development, as she is being developed sufficiently through undertaking audit engagements.

C.  

Accept that she is unlikely to meet continuing professional development requirements but look to attend training courses at the next available time.

D.  

Accept that she is responsible for her own continuing professional development, develop a professional plan, and discuss it with the CA

E.  

A.  

The organizational culture rewards critical and objective thinking.

B.  

The quality of work performed by the internal audit activity is periodically reviewed,

C.  

The organization establishes effective governing body oversight,

D.  

Audit assignments are rotated among internal audit staff

A.  

Fraud specialists are better at using computer-assisted audit techniques.

B.  

Fraud specialists are better equipped to act as an expert witness in court.

C.  

Fraud specialists are better able to properly apply due professional care.

D.  

Fraud specialists are better at using crime scene investigation techniques.

A.  

To recognize red flags that indicate fraud.

B.  

To recommend controls to prevent fraud.

C.  

To apply forensic auditing techniques to detect fraud.

D.  

To evaluate the potential for fraud.