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Master the IIA IIA-CIA-Part1 Exam: Essential Study Tips and Strategies

Questions 106

In which of the following situations may the internal audit activity report conformance with the Standards?

Options:

A.

An internal audit activity has been in existence at least five years and has not completed an external assessment,

B.

An internal auditor was assigned to an audit engagement but did not meet individual objectivity requirements.

C.

The internal audit activity prepared an internal audit plan that was not risk-based.

D.

The internal audit activity has been in existence fewer than five years, but periodic self-assessments were conducted.

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Questions 107

Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?

Options:

A.

The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,

B.

The auditor decided not to notify her supervisor that her brother-in-law was responsible for the project the auditor was expected to evaluate.

C.

The auditor asked the audit client to copy requested files to her personal unencrypted memory stick because it was faster and more convenient.

D.

The auditor was assigned to analyze the organization's incentive program and spent long hours reviewing other employees’ bonuses,

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Questions 108

Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?

Options:

A.

Review the organization's ethical value structure and reporting procedures.

B.

Review what the organization considers to be ethical behavior, such as the employee code of conduct.

C.

Review employee survey responses and follow up on those that suggest weaknesses in the ethical climate.

D.

Review the organization's records to ensure all employees have signed statements that they will follow ethical practices.

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Questions 109

Which of the following situations is most likely to heighten an internal auditor's professional skepticism regarding potential fraud?

Options:

A.

A procurement manager does not have the expected academic credentials for his position.

B.

A salesperson frequently complains about the organization's policy on sales commissions.

C.

The accounts payable supervisor has requested advances against her monthly salary on several occasions.

D.

A financial accountant is absent from work frequently due to regular medical procedures.

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Questions 110

Which of the following could increase risks to the organization’s control environment?

Options:

A.

Strong board of directors oversight.

B.

Incentive-based compensation structures.

C.

Lower than average employee turnover.

D.

Implementation of a fraud hotline.

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Questions 111

Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

Options:

A.

ISO 26000.

B.

Global Reporting Initiative.

C.

Open Compliance and Ethics Group.

D.

COSO’s enterprise risk management framework

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Questions 112

Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?

Options:

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.

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Questions 113

An internal auditor is updating the risk register for risks identified during a recent organizational risk assessment. According to the Standards, which of the following would the auditor include in the risk register?

Options:

A.

Management’s acceptance of inadequate controls for cybersecurity risk.

B.

Discussions with senior management relating to a new revenue stream.

C.

Mitigating controls implemented by the engagement supervisor

D.

Project manager planned hours versus time spent for all prior year projects

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Questions 114

In which of the following ways could stakeholders be engaged in corporate social responsibility efforts?

Options:

A.

Investigation of health and safety incidents.

B.

Auditing of controls and management systems.

C.

Communication of disclosures and external reporting,

D.

Involvement in focus groups and complaint management

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Questions 115

Which of the following best describes the risk contained in an initial public offering for a new stock?

Options:

A.

Residual risk.

B.

Net risk.

C.

Inherent risk.

D.

Underlying risk.

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Questions 116

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies inclusion of this clause in the reports?

Options:

A.

Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct.

B.

The audit committee has reviewed the annual self-assessment results and approved the use of the clause.

C.

The self-assessment results were validated by a qualified external review team three years prior.

D.

The internal audit charter, approved by the audit committee, requires conformance with the Standards

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Questions 117

In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?

Options:

A.

The effectiveness of process-level and transaction-level controls.

B.

Conflicts of interest within the organizational structure of the senior management.

C.

The alignment of management decisions with the level of risk the organization is willing to accept.

D.

The actions of upper management in response to the internal audit activity's reporting

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Questions 118

According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?

Options:

A.

Results of internal assessments need to be reported to the board at least once every five years.

B.

The external assessor must present the findings from the external assessment to senior management and the board upon completion.

C.

Deficiencies within the internal audit activity must be reported to the board as soon as they are noted.

D.

Results of ongoing monitoring of the internal audit activity's performance must be reported to senior management and the board at least annually

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Questions 119

At a conference, an interna! auditor presented a new computer-assisted audit technique developed by his organization. The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers, and the trip was approved by the chief audit executive (CAE).

However, neither management nor the CAE was aware that the internal auditor would be making a presentation based on work completed for the organization. According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?

Options:

A.

The auditor did not violate the standard of objectivity because the presentation had no impact on the organization.

B.

The auditor violated the principle of confidentiality by disclosing information about the organization without approval.

C.

The auditor should have obtained permission before using the material, but did not violate the IIA Code of Ethics or Standards,

D.

The auditor breached the conflict of interest standard by accepting payment for travel costs

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Questions 120

Management assessed the organization’s risk of expanding operations into a new, but volatile, region and began looking for a compatible local partner to manage sales and distribution. Which of the following best describes this risk management technique?

Options:

A.

Avoidance.

B.

Acceptance.

C.

Reduction.

D.

Sharing

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Exam Code: IIA-CIA-Part1
Exam Name: Essentials of Internal Auditing
Last Update: Jul 19, 2024
Questions: 691

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