Practice IIA-CIA-Part1 Exam Online

Question 1

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

A : Appoint the chief audit executive as a member of the board.

B : Adopt written policies and procedures for the internal audit activity, approved by the board.

C : Ensure the chief audit executive reports administratively to the audit committee.

D : Establish the internal audit activity's position within the organization in an audit charter.

Answer: D

Question 2

Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?

1. Periodically reviewing the vendor list for unusual vendors and addresses.

2. Segregating duties for amount purchasing, receiving, shipping, and accounting.

3. Validating sequential integrity of purchase orders.

4. Verifying the validity of invoices with post office box addresses.

A : 1 and 2 only

B : 3 and 4 only

C : 1, 2, and 4 only

D : 1, 2, 3, and 4

Answer: B

Question 3

The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?

A : Intimidation threats may compromise the auditor's objectivity due to multiple negative audit reports completed by the auditor.

B : The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity's independence.

C : A negative cognitive bias may be in place that affects the employee's objectivity due to the recent audits with uncorrected control deficiencies.

D : The auditor may have formed a cultural bias, as the department under review is in the auditor's geographic area.

Answer: B

Question 4

Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?

A : Becoming a voting member of the organization's internal ethics council.

B : Performing an annual organizationwide employee survey.

C : Performing an annual organizationwide employee survey.

D : Conducting annual ethics training for all employees.

Answer: C

Question 5

Using the internal audit department to coordinate regulatory examiners' efforts is beneficial to the organization because internal auditors can:

A : Influence regulatory interpretation of law to better match corporate practice.

B : Recommend changes to the scope of the regulatory examiners' review.

C : Perform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.

D : Supply evidence of adequate compliance testing through internal audit workpapers and reports.

Answer: D

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