IIA IIA-CIA-Part1 Free Practice Questions

NEW QUESTION 1
As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

• A. Organizational independence.
• B. Professional objectivity.
• C. Due professional care.
• D. Individual proficiency.

Answer: B

NEW QUESTION 2
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

• A. Statistical sampling only
• B. Nonstatistical sampling only
• C. A combination of both statistical and nonstatistical sampling.
• D. Neither approach to testing the audit theory would be cost effective.

Answer: B

NEW QUESTION 3
Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

• A. Requesting a private meeting with senior management, without the presence of the chief audit executive.
• B. Intervening during an audit involving ethical wrongdoing.
• C. Discussing periodic reports of ethical breaches.
• D. Authorizing an investigation of an unsafe product.

Answer: B

NEW QUESTION 4
According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?

• A. Consumers.
• B. Activists.
• C. Suppliers.
• D. Investors.

Answer: B

NEW QUESTION 5
Which of the following enhances the independence of the internal audit activity?

• A. The chief audit executive (CAE) approves the annual internal audit plan.
• B. The CAE administratively reports to the board.
• C. The audit committee approves the CAE's annual salary increase.
• D. The chief executive officer approves the internal audit charter.

Answer: C

NEW QUESTION 6
According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

• A. Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.
• B. Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.
• C. Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.
• D. Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.

Answer: C

NEW QUESTION 7
According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to

• A. perform a proper assessment.
• B. An auditor was reviewing inventory counts conducted by the warehouse staf
• C. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.
• D. An auditor visited a plant that produces a significant portion of the organization's inventor
• E. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
• F. An auditor in charge needed to have testing completed by the end of the month, but was behind schedul
• G. He identified a junior auditor to conduct the work for him on a complex area of the organization.

Answer: A

NEW QUESTION 8
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's work may be reviewed by any other experienced staff member within the IAA.
• B. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
• C. The CAE may self-review his work, provided he discloses this practice in the final report.
• D. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.

Answer: B

NEW QUESTION 9
Which of the following must be in existence as a precondition to developing an effective system of internal controls?

• A. A monitoring process.
• B. A risk assessment process.
• C. A strategic objective-setting process.
• D. An information and communication process.

Answer: B

NEW QUESTION 10
According to The IIA's Code of Ethics, which of the following is true?

• A. Confidentiality requires that auditors disclose all material facts known to them.
• B. Integrity requires that auditors perform internal audit services in accordance with the Standards.
• C. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
• D. Confidentiality requires that auditors be prudent in the use and protection of client information.

Answer: D

NEW QUESTION 11
An assurance mapping exercise helps an organization do which of the following?
* 1. Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.
* 2. Fulfill best practices in the industry.
* 3. Identify and address any gaps in the risk management process.
* 4. Identify fraud.

• A. 1 and 4.
• B. 1 and 3.
• C. 2 and 3.
• D. 3 and 4.

Answer: B

NEW QUESTION 12
Which of the following describes a key characteristic related to effective organizational communication?

• A. Comprehensive supervisory and verification procedures.
• B. A well-designed system of internal controls.
• C. A culture of integrity and transparency.
• D. Unique operating environments with varying complexity.

Answer: B

NEW QUESTION 13
Which of the following scenarios best illustrates the principle of due professional care?

• A. An internal auditor evaluates the significant risks arising from a consulting engagement.
• B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.
• C. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.
• D. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

Answer: A

NEW QUESTION 14
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

• A. Determine the organization's overall risk appetite.
• B. Establish a governance committee.
• C. Delegate authority to members of senior management.
• D. Identify key stakeholders and their expectations.

Answer: D

NEW QUESTION 15
Which of the following is a weakness of observation as audit evidence?

• A. It cannot be used to test the completeness assertion.
• B. It cannot be used to test the existence assertion.
• C. It cannot be used to test the occurrence assertion.
• D. It cannot be relied upon because the evidence is not persuasive.

Answer: A

NEW QUESTION 16
A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

• A. Logic test.
• B. Check digits.
• C. Data integrity tests.
• D. Balancing control activities.

Answer: A

NEW QUESTION 17
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