Pre-Summer Sale Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 65pass65

IIA-CIA-Part1 Internal Audit Fundamentals is now Stable and With Pass Result | Test Your Knowledge for Free

Exams4sure Dumps

IIA-CIA-Part1 Practice Questions

Internal Audit Fundamentals

Last Update 1 day ago
Total Questions : 735

Dive into our fully updated and stable IIA-CIA-Part1 practice test platform, featuring all the latest CIA exam questions added this week. Our preparation tool is more than just a IIA study aid; it's a strategic advantage.

Our free CIA practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about IIA-CIA-Part1. Use this test to pinpoint which areas you need to focus your study on.

IIA-CIA-Part1 PDF

IIA-CIA-Part1 PDF (Printable)
$43.75
$124.99

IIA-CIA-Part1 Testing Engine

IIA-CIA-Part1 PDF (Printable)
$50.75
$144.99

IIA-CIA-Part1 PDF + Testing Engine

IIA-CIA-Part1 PDF (Printable)
$63.7
$181.99
Question # 61

According to IIA guidance, which of the following is true of the internal audit activity’s quality assurance and improvement program?

1 Monitoring the internal audit activity’s performance must be ongoing

2 All aspects of the internal audit activity should be evaluated

3 The requirement for external assessments can be satisfied through self-assessments that are validated by an independent external party

4 The review of assurance services should be the primary focus

Options:

A.  

1 and 2 only

B.  

2 and 3 only

C.  

1, 2 and 3

D.  

1 3 and 4

Discussion 0
Question # 62

Senior management purchased surveillance cameras and installed them over a door that provides entry to an area where according to a recent internal audit report, hazardous materials exist and there is a high risk of explosion Which type of control was implemented in this situation?

Options:

A.  

A corrective control

B.  

A detective control

C.  

A preventive control

D.  

A directive control

Discussion 0
Question # 63

Which of the following statements is true regarding corporate social responsibility (CSR)?

Options:

A.  

Many of the areas explored by CSR are normally included in an audit universe or annual audit plan

B.  

Despite significant corporate resources spent on CSR reporting investors generally do not rely on CSR information

C.  

Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary

D.  

Typically operating management does not have a major role to play based on the public nature of reporting

Discussion 0
Question # 64

Which of the following scenarios would cause a chief audit executive (CAE) to immediately discontinue using any statements that would indicate conformance with the Standards in an audit report?

Options:

A.  

The internal audit activity used a risk-based approach to create the internal audit plan.

B.  

The engagement supervisor considered requests from senior management regarding engagements to include in the internal audit plan.

C.  

The CAE only accepted engagements that the internal audit activity collectively had the knowledge to perform.

D.  

The area under review restricted the internal audit activity's ability to access records, impacting the audit results.

Discussion 0
Question # 65

According to IIA guidance, which of the following is the most accurate statement regarding the internal audit charter?

Options:

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.

Discussion 0
Question # 66

It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

Options:

A.  

The cost-benefit relationship of planned audits.

B.  

Proficiency needed to carry out engagements.

C.  

Achievement of the objectives of internal control.

D.  

Quantity of the audits performed.

Discussion 0
Question # 67

Which of the following is a true statement regarding whistleblowing?

Options:

A.  

Whistleblowing is one of several possible ethical structures an organization can undertake to encourage ethical behavior.

B.  

Whistleblowing programs help employees deal with ethical questions and instill ethical values into everyday behavior

C.  

Whistleblowers are current or former employees who are disgruntled and looking to retaliate.

D.  

Whistleblowers should inform the organization about actual criminal circumstances, not assumed allegations

Discussion 0
Question # 68

An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several internal auditors on staff are qualified to perform basic assessments of IT systems, none are familiar with the new system. Which of the following is a legitimate response to the prospective client?

1. Decline the engagement.

2. Proceed with the engagement, performing only those parts of the engagement that the internal auditors are qualified to perform.

3. Accept the engagement and develop the additional competencies in-house prior to the engagement's starting date.

4. Make arrangements to obtain assistance from a competent IT auditing expert.

Options:

A.  

1 and 4 only.

B.  

2 and 3 only.

C.  

1. 2, and 3 only.

D.  

1, 3, and 4 only.

Discussion 0
Question # 69

As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?

Options:

A.  

The organization's board of directors.

B.  

The chief audit executive.

C.  

The business unit manager and the engagement supervisor.

D.  

The compliance manager and the business unit manager.

Discussion 0
Question # 70

If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?

Options:

A.  

Evaluate the suspected activities to determine whether a forma! investigation is warranted,

B.  

Immediately inform senior management and the board of the suspected fraud.

C.  

Ascertain the level of resources needed to formally investigate the fraud, and proceed with the investigation if resources permit,

D.  

Include in the engagement documentation all possible effects and the potential impact of the fraud to the organization

Discussion 0
Question # 71

The chief audit executive (CAE) of a large organization has been asked by the board to assume responsibility for risk management and compliance operations, both of which are distinct departments within the organization and are subject to periodic audits by the internal audit activity In regards to future audits of these functions which of the following approaches would be most appropriate?

Options:

A.  

Audits of risk management and compliance functions should be overseen by a competent external assurance provider

B.  

Audits of risk management and compliance functions should be overseen by a senior audit manager within the internal audit activity other than the CAE

C.  

Audits of risk management and compliance functions should be conducted by internal auditors under the supervision of management from both functions

D.  

Audits of risk management and compliance functions should be earned out by a team of the most experienced auditors overseen by the CAE

Discussion 0
Question # 72

When an organization purchases a derivative contract in the stock market to limit the potential loss in the value of a security, the organization is applying which of the following risk management techniques?

Options:

A.  

Avoiding the risk altogether.

B.  

Transferring the risk.

C.  

Introducing a control feature.

D.  

Accepting the risk.

Discussion 0
Question # 73

Which of the following statements is true regarding occupational fraud?

Options:

A.  

An employee who diverts the organization's purchases for personal use is demonstrating asset misappropriation

B.  

An employee who intentionally omits negative information in the financial statement disclosures is demonstrating an example of corruption

C.  

An employee who made an error in estimating losses may have committed fraud even if the error was not intentional

D.  

An employee who creates a denial of service in the organization’s computer systems is committing asset misappropriation

Discussion 0
Question # 74

The internal audit activity was denied access to expenditure and budget reports because they were considered to be confidential. This situation would result in which of the following limitations of the internal audit activity?

Options:

A.  

Independence

B.  

Integrity

C.  

objectivity

D.  

Authority

Discussion 0
Question # 75

In which of the following scenarios would the internal auditor’s objectivity be best protected?

Options:

A.  

A former human resources manager conducts an effectiveness review of the appointment and termination process six months after transferring to the internal audit activity.

B.  

An accounts payable clerk assists the internal auditors during an effectiveness review of the physical access controls to the server room.

C.  

An internal auditor writes the system manual for a newly acquired payroll software application prior to conducting an effectiveness review of the system.

D.  

An internal auditor conducts an effectiveness review of an organization's business continuity plan in which his son is a minority stockholder.

Discussion 0
Get IIA-CIA-Part1 dumps and pass your exam in 24 hours!

Free Exams Sample Questions