Exit demo IIA-CIA-PART1 Certified Internal Auditor - Part 1, The Internal Audit Activity's Role in Governance, Risk, and Control PDF format · free preview

IIA IIA-CIA-PART1 - Questions & Answers

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Question 1
Single choice

Which of the following requests, if accepted by the internal audit activity, would impair its independence?

A.

A request to develop workshops on corporate governance for management.

B.

A request to act as liaison with external auditors.

C.

A request to determine appropriate risk management responses for management.

D.

A request to provide counseling services on ethical matters.

Question 2
Single choice

Senior management asks the chief audit executive to review the organization's compliance with recently introduced legislation on international transfer pricing. The review requires an internal auditor who thoroughly understands the legislation and pricing methods. The internal audit activity does not have an auditor with those skills.

Which of the following is the most appropriate course of action?

A.

Outsource the engagement to an external audit rm that has appropriate skills.

B.

Recruit a lawyer with knowledge of the legislation to the audit team and ask the new auditor to perform the engagement.

C.

Decline to perform the engagement, as the internal audit activity does not have the appropriate skill set.

D.

Carry out the engagement using existing internal audit staff to help them gain the appropriate experience.

Question 3
Single choice

A manufacturing organization receives all direct materials for nished goods production.

Which of the following is the strongest preventive control for lapses in quality assurance?

A.

Identifying and rejecting completed products that are not up to quality and standard specifications.

B.

Electronically measuring the materials and components according to specifications prior to manufacturing.

C.

Examining partially assembled nished products to ensure that the manufacturing process is working correctly.

D.

Manually inspecting received supplier materials to ensure appropriate quantities and quality.

Question 4
Single choice

Which of the following situations is most likely to threaten the independence of the internal audit activity?

A.

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

B.

The annual budget for the internal audit activity is approved by the chief financial officer.

C.

The internal audit activity is completely outsourced to an external service provider.

D.

The internal audit manager provides consulting services to the procurement department, where she worked during the prior year.

Question 5
Single choice

There is a growing perception that employees generally evade their responsibilities.

What impact will an internal auditor most likely see during an engagement?

A.

Supervisors are likely to reduce their level of supervision and increase span of control.

B.

Employees are likely to be supervised closely and given little freedom.

C.

Peer employees are likely to trust one another, but distrust management.

D.

Employees are likely to join forces to accomplish their duties as teams.

Question 6
Single choice

Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?

A.

A quality assessment review.

B.

An internal audit client survey.

C.

A control self-assessment.

D.

A peer review of the internal audit activity.

Question 7
Single choice

According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?

A.

Auditors must have an IT specialty in at least one of their organization's key information technology systems.

B.

Auditors must be proficient in data analysis and computer assisted audit techniques for their organization.

C.

Auditors must understand their organization's integrated test facilities and generalized audit software.

D.

Auditors must understand their organization's IT governance, risk, and control processes.

Question 8
Single choice

Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?

A.

Internal auditors have shown they have the freedom to carry out their responsibilities.

B.

Internal auditors have demonstrated the skills needed to carry out the audit engagement.

C.

Internal auditors have strictly followed a formal audit process in conducting their work.

D.

Internal auditors have demonstrated an unbiased mental attitude.

Question 9
Single choice

A chief audit executive (CAE) is concerned that the internal audit activity is not receiving adequate training and continuing education.

Which of the following approaches should the CAE take?

A.

Implement a uniform professional development plan for the internal audit activity.

B.

Create a formal development agreement with each individual staff auditor.

C.

Require each internal auditor to obtain the same professional certifications.

D.

Require training and developmental activities that are sponsored by The IIA.

Question 10
Single choice

A chief audit executive (CAE) has been asked by the board to evaluate the effectiveness of ethical programs created by management.

Which of the following would be the most appropriate action for the CAE to take?

A.

Compare the design of the organization's ethical programs with best practices.

B.

Verify that a code of conduct and related policies exist and are communicated.

C.

Use employee surveys to assess whether ethical programs are achieving desired outcomes.

D.

Compare the cost of the ethical programs with the achieved outcomes.

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