IIA-CIA-Part1 Practice Questions

A.  

To evaluate an organization s governance processes for making strategic and operational decisions eternal auditors should review the organization s policies and processes related to staff compensation

B.  

To determine how an organization provides oversight of its risk management and control activities internal auditors should review board meeting minutes and the board policy manual

C.  

To assess how an organization promotes ethics and values both internally and among its external business partners, internal auditors should review the organization' s related objectives programs and activities

D.  

To evaluate how an organization ensures effective performance management and accountability internal auditors should review previously conducted risk assessments

A.  

Internal auditors' level of competencies and skills.

B.  

The manner in which the internal audit activity is viewed by the board.

C.  

Evaluation of staff certifications and continued development.

D.  

Effectiveness of the quality assurance and improvement program.

A.  

Coordinate and facilitate risk workshops for management to attend.

B.  

Establish the degree of risk appetite for management to accept.

C.  

Set risk indicators and mitigation plans for management to implement

D.  

Determine the number of significant risks for management to report to the board.

A.  

The board should ask the internal audit activity to perform additional assurance engagements.

B.  

A comprehensive fraud risk assessment and management program should be carried out.

C.  

The organization should conduct training sessions on fraud, which should be attended by senior management and staff.

D.  

Anti-fraud and whistleblowing policies should be implemented and their importance should be clearly stated.

A.  

Involve board members in hiring activities and request advice.

B.  

Require all internal audit staff to complete the same training course on a general audit subject,

C.  

Require senior auditors to obtain a professional certification.

D.  

Provide a competency assessment of the internal audit staff.

A.  

An organization that is able to provide goods and services society needs and thus maximizes profit to its owners.

B.  

An organization that ensures compliance to legal frameworks of the countries in which it operates and sells its products.

C.  

An organization that is willing to make contributions not mandated by law or economics and expects no payback.

D.  

An organization that requires its decision makers to act with equity, fairness, and respect for the rights of individuals.

A.  

Statistical sampling techniques should always be used to pull unbiased sampling for testing.

B.  

Fieldwork completed by internal auditors should be appropriately reviewed.

C.  

Internal auditors should avoid using the lunch room simultaneously with audit clients.

D.  

During the audit review period, there should be no nonaudit dialogues with the audit client.

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.  

To ensure that internal audit staff maintains high overall job satisfaction.

B.  

To ensure that internal audit staff acquired continuing professional education credits timely.

C.  

To ensure that top risks are mitigated to an acceptance level.

D.  

To ensure that internal audit staff have the competency to address high-priority risks.

A.  

Reviews of reports to determine which issued payments lack evidence of supervisory review.

B.  

A monthly review of new vendors performed by management for reasonableness.

C.  

Bank reconciliations performed on a monthly basis by the accounting department.

D.  

A code of conduct and whistleblower policy that must be signed by all employees annually.

A.  

Number of mitigating controls.

B.  

Effectiveness of the control environment

C.  

Use of computer-assisted auditing techniques.

D.  

IT security controls

A.  

Outline expectations for communicating the results of all aspects of the internal audit activity.

B.  

Declare the internal audit activity’s accountability for safeguarding assets and confidentiality.

C.  

Document the chief audit executive’s (CAE's) reporting line

D.  

Document agreement between the CAE and the individual to whom the CAE reports

A.  

Due professional care.

B.  

Competency.

C.  

Effective communication

D.  

Professionalism

A.  

Use an average cost for power to smooth the bottom line.

B.  

Analyze the amount of power used to produce each power tool.

C.  

Review the current process to identify opportunities to reduce power usage.

D.  

Use a forward contract for bulk power purchases

A.  

The nature and scope of a consulting engagement are determined by the internal audit activity based on its risk assessment

B.  

The nature and scope of an assurance engagement are subject to agreement with management of the area under review

C.  

Both assurance services and consulting services can be focused on controls or performance or both

D.  

The assurance engagement process ends with reporting