IIA-CIA-Part1 Practice Questions

A.  

The sales department has failed to achieve targets for the last nine months.

B.  

Employees report suspicious activity by calling the organization ' s ethics hotline.

C.  

Hiring procedures do not include background checks for prospective job candidates.

D.  

Management reports three potential ethics issues to the board of directors.

A.  

To provide guidance and solicit feedback on managing the internal audit activity as expected by various stakeholders.

B.  

To provide an understanding of the Mission of Internal Audit and The IIA ' s mandatory guidance elements.

C.  

To provide an update on the internal audit activity ' s quality of engagement supervision.

D.  

To provide information on existing internal audit planning, changes to the internal audit plan, and the rationale for the changes

A.  

Develop training and system rollout plans in response to the results of the change readiness assessment of a new sales distribution model

B.  

Lead a risk self assessment session for laboratory managers to help identify inherent risks and provide recommendations on how to evaluate the risks

C.  

Audit a third party cloud service provider to review the effectiveness of governance and management controls in providing secure services to its customers

D.  

Conduct a post-implementation assessment of the enterprise resource planning system to determine whether project objectives were met and to identify opportunities to maximize potential benefits

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

A.  

Low-level audit expertise

B.  

Narrow industry experience

C.  

MPotential conflict of interest

D.  

Weak interpersonal skills

A.  

The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,

B.  

The auditor decided not to notify her supervisor that her brother-in-law was responsible for the project the auditor was expected to evaluate.

C.  

The auditor asked the audit client to copy requested files to her personal unencrypted memory stick because it was faster and more convenient.

D.  

The auditor was assigned to analyze the organization ' s incentive program and spent long hours reviewing other employees’ bonuses,

A.  

Management periodically reviews and verifies the information in the vendor master Tile.

B.  

Management ' s approval is required for update to vendors ' banking information.

C.  

Management randomly audits a sample of payments to verify the accuracy of vendors ' banking information.

D.  

Management ' s approval is required before payments can be processed.

A.  

Plans must include a path to certification so that each internal auditor has a certification in auditing finances.

B.  

Plans must ensure that staff development activities are based primarily on the skills and competencies needed to complete the audit plan.

C.  

Plans must include rotating audit areas so that auditors acquire business knowledge to be efficient in performing engagements.

D.  

Plans must include rotating auditors out into business units for temporary assignments so they can obtain more business knowledge.

A.  

The charier should be revised and re-approved whenever a new chief audit executive (CAE) is appointed or at the request of the board

B.  

The charier should be re-approved every five years, in conjunction with the external quality assessment

C.  

The charier can be revised at the discretion of the CAE whenever 4 is determined that its content no longer supports the achievement of objectives

D.  

The charier should be reviewed and resubmitted for board approval annually together with the audit plan

A.  

Reduce the risk.

B.  

Transfer the risk.

C.  

Accept the risk.

D.  

Share the risk.

A.  

For both assurance and consulting engagements, the auditor must independently and objectively select the criteria for evaluation

B.  

For a consulting engagement, internal auditors and management jointly agree on the adequate criteria needed to evaluate governance, risk management, and controls. This is not true of assurance engagements

C.  

Engagement planning and fieldwork are similar for both types of engagements (there are no major differences) although the reporting process is different depending on which service is provided

D.  

For a consulting engagement objectives must address governance risk management and control processes to the extent agreed upon with the client. This is not true of assurance engagements

A.  

Evaluating and suggesting improvements to the risk management process.

B.  

Establishing the organization ' s risk appetite.

C.  

Determining whether the risk attitude is aligned with shareholder interests.

D.  

Ensuring an adequate risk management system is in place.

A.  

Senior management

B.  

Internal audit activity.

C.  

All employees.

D.  

Board of directors.

A.  

The internal audit charter authorizes the internal audit activity ' s reporting structure and clearly defines the roles of each internal auditor.

B.  

The internal audit charter defines the roles and responsibilities of the chief audit executive, board of directors, and senior management.

C.  

The internal audit charter authorizes access to records, personnel, and physical properties relevant to the performance of audit engagements.

D.  

The internal audit charter defines the criteria by which the internal audit activity ' s performance will be evaluated

A.  

The chief audit executive (CAE) documented in the personal file a critical conflict of interest involving an internal audit on a upcoming contracting engagement.

B.  

The CAE discussed with the board an issue regarding the internal activity performing an IT engagement without proper skills and knowledge.

C.  

The CAE met with the peer review team to discuss an internal auditor’s failure to meet the annual requirements for continuing professional education.

D.  

The CAE revealed to revealed to operational manager that he failed to appropriately consider risks while he was developing the audit plan.