IIA-CIA-Part1 Practice Questions

A.  

A relative of an internal audit team member works m a department being reviewed

B.  

The internal audit budget is reduced by management requiring the removal of all lT-related engagements from the audit plan

C.  

An audit manager removes a finding from the draft report due to disagreements with the chief financial officer

D.  

The operating effectiveness of a control is reported as 'satisfactory." because no concerns were identified during planning

A.  

To ensure all internal audit responsibilities can be met

B.  

To ensure all audit staff members are capable of performing a quality self-assessment.

C.  

To ensure that each auditor maintains responsibility for his own professional development.

D.  

To attract the best and most talented candidates in the profession

A.  

Expertise requirements for internal auditors

B.  

Functional and administrative reporting lines for the chief audit executive

C.  

Audit engagements to be completed in the next fiscal year

D.  

Budget requirements for each engagement

A.  

Becoming a voting member of the organization's internal ethics council.

B.  

Performing an annual organizationwide employee survey.

C.  

Reviewing all departmental ethics-related policies.

D.  

Conducting annual ethics training for all employees.

A.  

The ability to apply forensic methods to obtain legally admissible evidence

B.  

The ability to conduct admission-seeking interviews with potential suspects

C.  

The ability to evaluate whether such attributes as intent and personal gain were present

D.  

The ability to retrieve concealed or deleted information from the former employee's laptop

A.  

The internal audit activity must have auditors on staff who collectively possess all of the competencies required to fulfill the internal audit plan,

B.  

All internal auditors on staff should possess the knowledge, skills, and competencies needed to perform any assurance engagement on the audit plan.

C.  

The internal audit activity must possess or obtain the competencies needed to carry out their professional responsibilities, including providing relevant advice and recommendations.

D.  

Internal auditors collectively are responsible for ensuring that the internal audit activity has the competencies required to fulfill the internal audit plan.

A.  

The engagement supervisor requests that an auditor carry out improvements to workpapers to address numerous problems: evidence is missing, references are incorrect, and conclusions are superfluous

B.  

Audit work was completed m accordance with the established goals; however, a material misstatement was later uncovered in the audited area by another assurance provider.

C.  

According to the audit report, several control failures occurred due to irresponsible behavior of local management, who was consequently deprived of bonuses and wrote a negative feedback to the auditor

D.  

The delivery of audit results was several weeks late because the internal auditor had to spend additional time trying to understand the nature of certain transactions with derivation.

A.  

It is not appropriate for the internal audit activity to play a role because its independence must be protected.

B.  

The internal audit activity should not participate because there are no IT auditors on staff.

C.  

The internal audit activity is knowledgeable about risk and therefore should prioritize the organization's responses and control activities for the committee.

D.  

The internal audit activity may assist the committee and consult with management on the organization's responses and control activities.

A.  

Business continuity

B.  

Market manipulation

C.  

intellectual property leakage

D.  

Reputational damage

A.  

Senior management has the authority to terminate the chief audit executive

B.  

Senior management has control over the internal audit activity's budget

C.  

Senior management provides feedback on the scope of the internal audit plan.

D.  

Senior management limits the internal audit activity's access to the board

A.  

Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct

B.  

The audit committee has reviewed the annual self-assessment results and approved the use of the clause

C.  

The self-assessment results were validated by a qualified external review team three years prior

D.  

The internal audit charter, approved by the audit committee requires conformance with the Standards

A.  

The IIA's Code of Ethics must exist outside of the charter to maintain independence.

B.  

The charter must be approved by both senior management and the board.

C.  

The nature of consulting services does not need to be defined in the Internal audit charter.

D.  

The charter provides a framework for performing a broad range of value-added audit services.

A.  

Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.

B.  

The chief financial officer asks for the internal auditor's opinion regarding whether the new accounting pronouncements were properly and comprehensively adopted.

C.  

An internal auditor is assigned to assess whether a proposed new initiative to convert a customer service system would be cost-effective.

D.  

Senior management asks the internal audit activity to review compliance with customer data security regulations.

A.  

Management requests that the internal audit activity review and provide feedback on its strategic plans for a merger, but the chief audit executive (CAE) declines the engagement due to the team's lack of experience with mergers.

B.  

A CAE reassigns auditors from other audits to perform testing on all of the fixed asset additions for a period, including amounts below the materiality level stated by external auditors.

C.  

Due to the routine and recurring nature of bank branch audits, an audit manager often excludes detailed planning at the beginning of the audit and immediately performs fieldwork.

D.  

During fieldwork, an auditor observed a lack of segregation of duties over cash management. The auditor reported this observation to his supervisor, who decided that the area should be examined in a subsequent audit.

A.  

The internal audit charter does not identify which audit services are outsourced.

B.  

The internal audit charter has not been reviewed by the legal department.

C.  

The internal audit charter has not been approved by the board within the past year.

D.  

The internal audit charter does not describe the authority of the internal audit activity.