IIA-CIA-Part1 Practice Questions

A.  

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with CSR.

B.  

The board is responsible for ensuring that CSR objectives are established, risks are managed, performance is measured, and activities are appropriately monitored and reported.

C.  

Management is responsible for ensuring that the organization’s CSR principles are communicated, understood, and integrated into decision-making processes.

D.  

Generally, CSR activities are limited to the management of the organization; thus, employees do not have a responsibility for ensuring the success of CSR objectives.

A.  

The CAE relies on CAEs in other organizations to understand how due professional care should be executed in her internal audit activity

B.  

The CAE meets with the board of directors on a quarterly basis to provide a status update.

C.  

The CAE assesses the audit staff ' s knowledge and skills annually to determine whether additional resources are needed to fulfill the internal audit plan.

D.  

The CAE provides absolute assurance to line management during each eternal audit engagement

A.  

Internal auditors must exercise due professional care to Insure that all significant risks will be identified,

B.  

Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor

C.  

Due professional care requires the internal auditor to conduct extensive examinations and verifications to ensure fraud does not exist,

D.  

Due professional care is displayed during a consulting engagement when the internal auditor focuses on potential benefits of the engagement rather than the cost.

A.  

Request the internal audit activity to perform an ethics-related assurance engagement.

B.  

Offer in-house ethics-related training seminars for employees to attend.

C.  

Reaffirm the importance of the organization ' s code of ethics to all employees.

D.  

Conduct an organizationwide employee survey on ethical practices

A.  

Internal auditors are expected by senior management to identify a minimum of five major control weaknesses in each area audited

B.  

Internal auditors are prevented from accessing information necessary to undertake their audit engagements

C.  

The chief audit executive reports directly to the chief financial officer who previously led the internal audit activity

D.  

The CEO requests the internal audit activity develop a charter that clearly delineates its purpose and responsibilities within the organization

A.  

active control? 3

B.  

Third parties who operate the hotline ensure anonymity for whistle blowers. D Whistleblower tips help discover wrongdoings and violations of the code of conduct.Potential perpetrators of fraud know that their actions can be reported easily.

C.  

Better investigation protocols are triggered by the whistleblower hotline.

A.  

A statement of independence of the organization ' s internal auditors.

B.  

Meeting minutes with the assessment team, if key risks were identified and discussed.

C.  

Frequency of the quality assessments being performed.

D.  

Summary of previous internal assessments undertaken.

A.  

Everyone in the agency has a primary responsibility for identifying and managing risks as part of the risk management process.

B.  

The risk management process, while evaluating risk, should develop a mechanism to rank the relative importance of each risk.

C.  

The risk management process should be regularly reviewed and respond to changes in the environment, to remain relevant.

D.  

The risk management process should use a formal technique to consider the consequence and likelihood of each risk.

A.  

Internal assessments must be performed by the chief audit executive.

B.  

An internal assessment must be performed at least once every five years.

C.  

It Is permissible to share the results of the QAIP with the organization ' s external auditors.

D.  

Results of ongoing monitoring must be validated annually by an independent external assessor.

A.  

The chief audit executive is well qualified and has responsibilities over operational areas that the internal audit activity assesses.

B.  

Periodic self-assessments are assigned to entry-level internal audit staff to support their continuing professional development.

C.  

All audit workpapers are reviewed and signed by the engagement supervisor before the audit report is issued.

D.  

Employees who rotate into the internal audit activity from other areas of the organization are assigned to audit areas where they previously worked, to take advantage of their operational expertise and experience.

A.  

When an organization has a high level of risk maturity the internal audit activity is less likely to provide consulting services related to risk management

B.  

When an organization has a low level of risk maturity, the internal audit activity is less likely to provide consulting services related to risk management

C.  

When an organization has a high level of risk maturity the internal audit activity is more likely to provide consulting services related to risk management

D.  

There is typically no correlation between an organization’s risk maturity and the extent to which the internal audit activity’s consulting role in risk management processes

A.  

The parties should work together to develop a mutually beneficial solution.

B.  

The internal audit activity should share the observation with other business units to get their opinions.

C.  

The internal audit activity should discuss with senior management, and if still not resolved, discuss with the board.

D.  

The internal audit activity should accommodate management ' s position, since the relationship is more important than the fight.

A.  

The CAE tasks internal auditors with coordinating assurance activities with other providers across the organization.

B.  

The CAE encourages auditors to volunteer to support research work of the local professional institute.

C.  

The CAE requires auditors to periodically attest to the profession ' s Code of Ethics.

D.  

The CAE reminds auditors to ensure workpapers are completed for audit engagements.

A.  

Integrity

B.  

Proficiency

C.  

Due Professional Care

D.  

Competency

A.  

Proceed with addressing the error and report any corrections to the engagement supervisor during the scheduled exit meeting

B.  

Issue the audit report to senior management on schedule but include a disclaimer about the error

C.  

Proceed with the scheduled closing of the engagement without consideration of the identified error

D.  

Inform the engagement supervisor of the error and allow the supervisor to determine the appropriate action to take