Jan 16, 2023 Updated IIA-CIA-Part1 Dumps Questions For IIA Exam
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NEW QUESTION 275
Which of the following best describes an appropriate form of working paper standardization?
- A. Customized layouts for each specific audit area.
- B. Uniform cross referencing system.
- C. Audit client review and approval.
- D. Comprehensive data lists from information databases.
Answer: B
NEW QUESTION 276
Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?
- A. Foam fire extinguishers are operable to protect against electrical fires.
- B. Adequate signs are in place to assist in locating safety equipment.
- C. Servers are secured individually to their racks by locks.
- D. Swipe card access is required to gain access to the server room.
Answer: B
NEW QUESTION 277
Which of the following would be considered a preventive control?
- A. A review of exception reports.
- B. A library control log.
- C. A password lock on a server.
- D. A software scan of financial records for irregularities.
Answer: C
NEW QUESTION 278
Which of the following is the most common way that occupational fraud is detected?
- A. External audits.
- B. Internal audits.
- C. Whistleblower hotline.
- D. Key controls.
Answer: C
NEW QUESTION 279
A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements.
According to IIA guidance, which of the following actions would best help the CAE reach this objective?
- A. Assign one experienced manager to better coordinate staff training and development activities.
- B. Require that all staff obtain a minimum of two relevant audit certifications.
- C. Engage a consultant to benchmark the IAA's training program against its peers.
- D. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.
Answer: D
NEW QUESTION 280
It would be appropriate for an internal audit activity to use consultants with expertise in health-care benefits when the internal audit activity is:
I. Conducting an audit of the organization's estimate of its liability for post retirement benefits, which include health care benefits.
II. Comparing the cost of the organization's health care program with that of other programs offered in the industry.
III. Training its staff to conduct an audit of health care costs in a major division of the organization.
- A. II and III only
- B. I, II, and III.
- C. I and III only
- D. I only
Answer: B
Explanation:
Section: Volume A
NEW QUESTION 281
According to the Standards, which of the following statements best describes the required content of the chief audit executive's (CAE) report to senior management and the board on the internal audit activity (IAA)?
- A. The CAE must report on significant risk exposures, control issues, and governance issues.
- B. The CAE must report on auditors' continuing education activities, staffing changes, and any outsourcing to external parties.
- C. The CAE must report on policies, procedures, and best practices of the IAA.
- D. The CAE must report on quality assurance techniques, statistical analysis methods, and other analytical processes used.
Answer: A
NEW QUESTION 282
An internal auditor is finalizing an audit report on the effectiveness of the organization's overall system of internal control. Several audit tests were performed, and the only issue identified was that the CEO frequently asks employees to make exceptions or bypass the organization's standard written policies and procedures.
Which of the following conclusions is most appropriate for the auditor to report?
- A. The auditor should indicate that the system of internal control is not effective.
- B. The auditor cannot express a conclusive opinion in the audit report.
- C. The auditor should indicate that the system of internal control is generally effective, except for the minor issue identified.
- D. The auditor should indicate that the system of internal control is effective.
Answer: A
NEW QUESTION 283
In order to use "Conducted in accordance with the International Standards for the Professional Practice of Internal Auditing, " an internal audit activity must:
- A. Have its charter reviewed and approved by management and the board.
- B. Establish a continuous quality assurance and improvement program.
- C. Satisfy all requirements of the International Professional Practices Framework during each internal audit engagement.
- D. Complete an external assessment of quality assurance to demonstrate compliance with the Standards.
Answer: D
NEW QUESTION 284
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
- A. Interviews.
- B. Observation.
- C. Surveys.
- D. Workshops.
Answer: C
NEW QUESTION 285
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?
- A. Delegate authority to members of senior management.
- B. Establish a governance committee.
- C. Identify key stakeholders and their expectations.
- D. Determine the organization's overall risk appetite.
Answer: C
NEW QUESTION 286
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?
- A. Quantity of the audits performed.
- B. Achievement of the objectives of internal control.
- C. Proficiency needed to carry out engagements.
- D. The cost-benefit relationship of planned audits.
Answer: C
NEW QUESTION 287
Which of the following best demonstrates organizational independence of the internal audit activity?
- A. The CAE's compensation is approved by the chief financial officer.
- B. The chief audit executive (CAE) reports functionally to the CEO.
- C. The CAE's appointment Is determined by the CEO
- D. The CAE reports administratively to the chief operating officer.
Answer: D
NEW QUESTION 288
While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization.
Which of the following actions are most appropriate for the auditor to take?
- A. Give the prize to a friend or family member and review the organization's ethics policy.
- B. Consult with an immediate supervisor and notify the organization's audit committee.
- C. Consult with an immediate supervisor and review the organization's ethics policy.
- D. Give the prize to a friend or family member and notitfy the organization's audit committee.
Answer: C
NEW QUESTION 289
A chief audit executive (CAE) has just joined an organization with an existing internal audit activity. Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?
- A. Ensure the limitations are disclosed through communication with the board and senior management, so that the internal audit activity can continue operating under the same organizational structure.
- B. Train internal auditors about organizational independence and have them sign an acknowledgment of understanding.
- C. Request that the board restructure the reporting line of the internal audit activity to ensure the CAE has unrestricted access to the board.
- D. Rotate internal audit assignments among members of the internal audit activity to minimize the effects of the current structure.
Answer: C
NEW QUESTION 290
Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?
I.Areas where personal information is collected,used,stored,and disseminated. II.Inherent risk.
III.Privacy practices of competitors.
IV.Third-party recipients of information.
- A. IIIonly
- B. I,II,and IVonly
- C. I and IIonly
- D. I,II,III,and IV.
Answer: B
NEW QUESTION 291
Which of the following is a common type of payroll fraud?
- A. Skimming.
- B. Unauthorized overtime.
- C. Fictitious employees.
- D. Unearned bonuses or commissions.
Answer: C
NEW QUESTION 292
Which of the following represents the most effective governance structure?
I. Operating
Executive
Internal
Management
Management
Auditing
Responsibility for risk
Oversight role
Advisory role
II. Oversight role
Responsibility for risk
Advisory role
III. Responsibility for risk
Advisory role
Oversight role
IV. Oversight role
Advisory role
Responsibility for risk
- A. III
- B. IV
- C. I Only
- D. II
Answer: C
NEW QUESTION 293
Which of the following would mostlikelybe considered a red flag for fraud?
- A. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
- B. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
- C. An organization lacks a whistleblower hotline for reporting suspicious activity.
- D. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
Answer: D
NEW QUESTION 294
The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?
- A. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
- B. The CAE's work may be reviewed by any other experienced staff member within the IAA.
- C. The CAE may self-review his work, provided he discloses this practice in the final report.
- D. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
Answer: D
NEW QUESTION 295
Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?
- A. Internal audit designs and implements the organization's controls to help manage risk.
- B. Internal audit sets the organization's risk tolerance and promotes awareness throughout the organization.
- C. Internal audit is responsible for safeguarding the organization's assets and preventing loss from occurring.
- D. Internal audit assesses whether the organization's risk management processes are effective.
Answer: D
NEW QUESTION 296
Which of the following is not true with regard to the internal audit charter?
- A. It provides a basis for evaluating the internal audit activity.
- B. It specifies the minimum resources needed for the internal audit activity.
- C. It should be approved by senior management and the board.
- D. It defines the authorities and responsibilities of the internal audit activity.
Answer: B
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION 297
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of thefollowing controls would best mitigate the risk of employees receiving kickbacks from suppliers?
- A. A pre-award financial capacity analysis of suppliers.
- B. Periodic inventories of kiln-dried wood at the organization's warehouse.
- C. The periodic rotation of procurement officers' assignments to supplier accounts.
- D. An automated computer report, organized by supplier, of any invoices for the same amount.
Answer: C
NEW QUESTION 298
An organization that outsources much of its internal audit work to an external service
provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?
- A. A team from an independent entity that previously employed the chief audit executive of the organization.
- B. A team under the direction of the organization's chief audit executive with validation by a former manager of the internal audit activity.
- C. The same external service provider because of its competency and experience with the organization.
- D. External industry associate that performed a similar review for a supplier of the organization.
Answer: D
NEW QUESTION 299
Which of the following would be addressed in the internal audit charter?
- A. Functional and administrative reporting lines for the chief audit executive
- B. Budget requirements for each engagement
- C. Expertise requirements for internal auditors
- D. Audit engagements to be completed in the next fiscal year
Answer: A
NEW QUESTION 300
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