IIA-CIA-Part1 Practice Questions

A.  

The internal audit policies and procedures handbook.

B.  

The internal audit charter.

C.  

The internal audit mission statement.

D.  

Each internal audit engagement letter.

A.  

By adopting the best practices of similar organizations in the industry.

B.  

By adjusting their internal control framework as business practices evolve.

C.  

By introducing the universally accepted COSO internal control framework.

D.  

By encouraging the internal audit activity to provide training on internal controls.

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.  

The internal audit activity constitutes the first line of defense in effective risk management.

B.  

The internal audit activity provides direction regarding internal controls implementation.

C.  

The internal audit activity verifies that management has met its responsibility for implementing effective controls.

D.  

The internal audit activity implements the internal control framework and advises management regarding best practices.

A.  

The internal auditor should present material information to appropriate personnel within the organization without revealing confidential matters that could be detrimental to the organization.

B.  

The internal auditor should disclose all material information obtained by the date of the final engagement communication.

C.  

The internal auditor should obtain all material information within the established time and budget parameters.

D.  

The internal auditor should reveal material facts that could potentially distort the reporting of activities under review.

A.  

Ensuring regular documentation of auditor skills and experience in the workpapers.

B.  

Basing performance evaluations heavily on customer satisfaction surveys.

C.  

Prohibiting auditors from accepting gifts from audit clients or potential clients.

D.  

Ensuring that auditors have a balance of both operational and internal audit responsibilities.

A.  

The auditor misunderstood the audit objectives.

B.  

The auditor lacked professional skepticism.

C.  

The auditor's fieldwork was not properly supervised.

D.  

The auditor lacked an understanding of the organization.

A.  

The chief audit executive (CAE) shall report directly to the board and administratively to the CEO.

B.  

The CAE shall provide senior management and the board with performance updates quarterly.

C.  

The internal audit team shall have full access to the organization's records, physical property, and personnel required to conduct audit engagements.

D.  

The internal audit activity shall maintain a quality assurance and improvement program in conformance with the Standards.

A.  

Complete a skills assessment of the internal audit activity based on. The IIA Global Internal Audit Competency Framework.

B.  

Develop a competency assessment tool for the internal audit activity based on The IIA Global Internal Audit Competency Framework.

C.  

Incorporate the basic criteria for competency of the internal audit activity into the job descriptions of potential internal auditors,

D.  

Develop an internal audit activity plan for training internal auditors to perform required assurance and consulting activities.

A.  

Ask internal auditors to gather all relevant information evidence

B.  

Identify and interview witnesses first potential suspects later.

C.  

Conduct a fraud risk assessment to the most vulnerable areas.

D.  

Determine me competencies needed and assess whatever team members have a conflict of interest.

A.  

An auditor attempts to obtain information needed to complete an assurance engagement but is denied access.

B.  

The appointment of the chief audit executive is ratified by the board.

C.  

An auditor demonstrates a good understanding of the steps involved in carrying out a consulting engagement.

D.  

The internal audit resource plan is only approved by the chief financial officer.

A.  

Internal auditors should perform assurance procedures to ensure that all significant risks are identified.

B.  

Internal auditors should not perform consulting engagements for operations for which they had previous responsibilities.

C.  

Internal auditors should consider the cost of assurance in relation to the potential benefits.

D.  

Internal auditors should devise internal audit programs to confirm that the results are accurate.

A.  

The internal audit activity must ensure management actions have been effectively implemented or risk accepted

B.  

A work program for the engagement is not required but may be developed

C.  

The nature of consulting services does not have to be in the internal audit charter

D.  

Risks identified from the engagement must be considered when evaluating the organization's risk management processes

A.  

Monitor and review.

B.  

Performance measurement.

C.  

Setting the context.

D.  

Communication.

A.  

Assurance services

B.  

Blended services

C.  

Consulting services

D.  

Prohibited services