Practice IIA-CIA-Part1 Exam Online

Question 1

Which of the following would not be a factor for senior management to consider when determining the internal audit activity's role in an organization's risk management process?

A : The extent to which the internal audit activity is outsourced.

B : The maturity level of risk management practices in the organization.

C : The competency of the internal auditors in risk management.

D : The nature of the business and the environment in which the organization operates.

Answer: A

Question 2

During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:

A : Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.

B : Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.

C : Recommend to the chief audit executive that a fraud investigation be started.

D : Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.

Answer: B

Question 3

An internal auditor is testing whether payments to outside contractors have been charged to the proper account. Which of the following sampling methods would be most useful in completing this task?

A : Haphazard sampling.

B : Probability-proportional-to-size sampling.

C : Attribute sampling.

D : Judgmental sampling.

Answer: C

Question 4

Which of the following is least likely to be considered material in an audit of a medium-sized organization?

A : A $1, 000 overstatement of the accrued-vacation payable account

B : A violation of a government statute

C : Fraud resulting in a cash loss to the organization.

D : An underpayment to the employee pension fund

Answer: A

Question 5

An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing.

Which conclusion should the auditor draw from this data?

A : Cash or accounts receivable has decreased.

B : The gross margin has decreased.

C : The division produced fewer items this year than in prior years.

D : The gross margin has increased.

Answer: A

Name:	Essentials of Internal Auditing
Exam Code:	IIA-CIA-Part1
Certification:	Certified Internal Auditor
Vendor:	IIA
Total Questions:	951
Last Updated:	Apr 23, 2024

IIA IIA-CIA-Part1