IIA-CIA-Part1 Practice Questions

A.  

The relative complexity of the engagement

B.  

The cost of the engagement relative to its benefits

C.  

The extent of work needed to achieve the engagement's objective

D.  

The needs and expectations of the engagement client

A.  

Welcome the additional responsibility, as it represents an opportunity to gain more information for future audits.

B.  

Revise the internal audit charter to include oversight of the insurance function, ensuring that all of her responsibilities are properly documented.

C.  

Report the request to the board and recommend alternate processes to obtain assurance related to insurance activities.

D.  

Promptly remove the organization's insurance function from the audit universe.

A.  

Senior management should be excluded from the reporting as the QAiP results must be communicated to re board only

B.  

The report can be streamlined by removing unnecessary information such as the qualifications and me independence of external assessors

C.  

The results must be snared with the external a auditors as well, so they can determine the extent to which they can rely on me work of the internal audit activity

D.  

The report should indicate that the external assessment must be performed at least once every five years

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 CAF's appointment is determined by the CEO

D.  

The CAE reports administratively to the chief operating officer

A.  

Personnel and customer surveys, actual reports, and due diligence results regarding third-party governance practices.

B.  

Details on mandatory reporting to third parties, disclosure committee charter and responsibilities, and the internal communication system.

C.  

Succession plans, development programs, and job descriptions with responsibilities and authorities.

D.  

Ethics and integrity policy; structured interviews with employees; and established and communicated values, mission, and vision.

A.  

The CAE reports administratively to the CEO.

B.  

The CAE is asked to submit the liquidation of her travel allowances to human resources for approval.

C.  

The CAE's supervisor is responsible for the risk management function.

D.  

The CAE is asked to review new procedures before implementation.

A.  

Descriptions of standardized work practices.

B.  

Outcomes of internal audit key performance indicators.

C.  

Conformance of individual engagements with the Standards,

D.  

Annual summaries of consulting and audit engagements.

A.  

The ability to assess IT governance.

B.  

The ability to provide an explanation on the risk profile of the organization to the board and senior management.

C.  

The ability to ensure that proposals for improvements to internal controls are balanced with organizational objectives and capabilities.

D.  

The ability to assess the potential for fraud risk and identifying common types of fraud associated with the engagement.

A.  

Politely decline the engagement due to a lack of qualified staff available at the time.

B.  

Complete the engagement as requested, with the best of the current staffs abilities.

C.  

Consider using employees from other departments in the organization on the audit team.

D.  

Change the scope of the testing to ensure that only available staff proficiencies are used

A.  

Women account for 20% of the total number of employees in the company.

B.  

Thirty percent of employees feel confident in raising concerns without a fear of retaliation.

C.  

Most employees believe that transparent and fair decision-making forms the basis of business ethics.

D.  

Employees with longer work experience believe that they deserve more privileges than new hires.

A.  

The risk assessment process applied by the internal audit activity

B.  

The organization's internal control framework used by the internal audit activity

C.  

The nature of consulting services provided by the internal audit activity

D.  

The performance evaluation process used by the internal audit activity

A.  

An independent third party has assessed the organization's system of internal controls to be adequate and effective,

B.  

The chief audit executive reports both functionally and administratively to the CEO.

C.  

The internal audit charter is drafted properly and approved by the appropriate parties.

D.  

The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

A.  

A purchasing manager with two years of prior audit experience in public practice to lead a contracts management audit

B.  

A communications officer who worked in the marketing department during the last six months to conduct a customer loyalty program audit

C.  

A manager of social responsibility who has a nursing background to participate m a health and safety audit for the corporate office and plant facilities

D.  

An accounting manager who discovered and reported fraud committed by a payables clerk to conduct a performance audit of accounts payable

A.  

Authority and responsibility of the internal audit activity

B.  

Hours and sources of continuing professional education

C.  

Scope and frequency of both the internal and external assessments

D.  

independence and objectivity impairments of the CAE

A.  

The risk and control model should be globally accepted by the profession.

B.  

The risk and control model should be strictly adhered to in performing the engagement.

C.  

The risk and control model should be tailored to the organization that will be the subject of the engagement.

D.  

The risk and control model should be developed individually by the auditor for use on individual audit projects within the planned engagement.