IIA-CIA-Part1 Practice Questions

A.  

Flowchart of the vendor addition process.

B.  

Independent confirmations sent to vendors.

C.  

Analysis of the control ' s costs and benefits.

D.  

Interview with management of the procurement function.

A.  

Support of good governance and controls.

B.  

Enhancement of organizational value.

C.  

Protection of tangible and intangible assets.

D.  

Provision of professional advisory and assurance services.

A.  

Minor theft of less than $10,000, not involving senior management.

B.  

Theft using collusion for more than $10,000. but not involving senior management.

C.  

Denial of access to requested employees during an audit.

D.  

Discussion of replacement of the chief audit executive.

A.  

Risk mitigation

B.  

Risk avoidance

C.  

Risk reduction

D.  

Risk transfer

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.  

By adopting the best practices of similar organizations in the industry.

B.  

By adjusting their internal control framework as business practices evolve.

C.  

By introducing the universally accepted COSO internal control framework.

D.  

By encouraging the internal audit activity to provide training on internal controls.

A.  

A non-disclosure agreement.

B.  

An annual declaration of commitment to

C.  

The IIA s Code of Ethics.

D.  

The internal audit charter.

A.  

An assessment of compliance of individual data protection procedures with data protection regulations

B.  

An assessment of profit and loss generated by financial assets and instruments in the past quarter

C.  

An assessment of the effectiveness of back-up procedures and execution of business recovery plans

D.  

An assessment of performance management practices and establishment of key performance indicators

A.  

The eternal auditor reviewed the audit clients proposed procedures and standards of control and offered suggested improvements at the client’s request.

B.  

The internal auditor performed nonaudit work for the audit client which was communicated to senior management and the board before the engagement was performed and restated in the audit report

C.  

internal auditors accepted limited access to the audit client ' s systems and records m accordance with the scope of the engagement

D.  

The internal auditor used his in-depth knowledge of systems development to assist the audit client m designing a new operational system with robust controls.

A.  

An internal auditor failed to expand the engagement and include managements preferences when determining the scope of an upcoming assurance engagement.

B.  

An internal audit activity lacks the skills need to perform a high-risk security engagement included on the annual audit plan.

C.  

A chief audit executive fated to perform a risk assessment prior to preparing the audit plan

D.  

An internal audit activity has existed for two years and has not undergone external quality assessment

A.  

Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization’s control processes.

B.  

Quality assessments focus on the internal audit activity ' s structure, relationships with stakeholders, compliance with the Standards, and internal audit staff proficiency.

C.  

In order to comply with the Standards, the internal audit activity must obtain an objective assessment of its processes and function at least once a year.

D.  

Internal auditors completing internal assessments must demonstrate certification to perform quality assessments.

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.  

The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.

B.  

The board seeks senior management ' s recommendation before approving the annual salary adjustment of the CA

E.  

C.  

The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity,

D.  

The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline

A.  

Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

B.  

Internal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.

C.  

internal auditors are always employed by the organization, rather than outsourced, and external auditors are never employed by the organization but contracted independently.

D.  

Internal auditors are most directly concerned with the detection of fraud, while external auditors are most directly concerned with the prevention of fraud.

A.  

Staff transfers are reviewed by the recruiting manager and approved by the head of human resources

B.  

New staff requisition forms are authorized by operational management and acknowledged by the head of human resources

C.  

Staff salary payments and accounting records are approved by the head of accounting and acknowledged by the head of human resources

D.  

The staff salary payment list is reviewed by the head of payroll and endorsed by the head of human resources