2023 IIA-CIA-Part1 dumps review - Professional Quiz Study Materials
IIA-CIA-Part1 Test Prep Training Practice Exam Questions Practice Tests
IIA-CIA-Part1 Certification Exam is ideal for individuals who are interested in pursuing a career in internal auditing. Essentials of Internal Auditing certification provides a comprehensive understanding of the essential principles and practices of internal auditing, which is essential for any individual looking to build a career in this field. Essentials of Internal Auditing certification is also ideal for internal auditors who are looking to enhance their knowledge and skills and improve their credibility in the industry.
NEW QUESTION # 23
Which of the following is not true with regard to the internal audit charter?
- A. It provides a basis for evaluating the internal audit activity.
- B. It defines the authorities and responsibilities of the internal audit activity.
- C. It specifies the minimum resources needed for the internal audit activity.
- D. It should be approved by senior management and the board.
Answer: C
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 24
Which of the following is the most common method of fraud detection?
- A. Unannounced audits or reviews of programs or departments.
- B. Analytical reviews of high-risk areas.
- C. Detective controls built into the daily processes.
- D. Tips received from employees or citizens.
Answer: D
NEW QUESTION # 25
When reviewing operational risk for a department whose manager adopts a laissez-faire style of leadership, it is most important for the internal auditor to verify that:
- A. Employees are empowered to deal with unusual or emergency situations.
- B. Management has adopted an open-door policy to assist with communication.
- C. Employee decisions follow department and company guidelines.
- D. The manager considers employees' input when designing new procedures.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION # 26
Which of the following controls would most likely prevent the input of an unreasonable number of labor hours into a costing system?
- A. Consistency checks of data in input fields.
- B. Recalculation tests during processing.
- C. Programmed limit tests of input fields.
- D. Reconciliation of input control totals.
Answer: C
NEW QUESTION # 27
Outsourcing a business activity is considered which of the following risk management techniques?
- A. Sharing a risk.
- B. Reducing a risk.
- C. Mitigating a risk
- D. Avoiding a risk.
Answer: A
NEW QUESTION # 28
When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports?
1. Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
2. Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.
3. Setting up a hotline for employees to report fraudulent behavior anonymously,
4. Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.
- A. 3 and 4 only
- B. 2 and 3 only.
- C. 2 and 4 only.
- D. 1 and 2 only.
Answer: D
NEW QUESTION # 29
Which of the following best demonstrates conformance with IIA standards related to continuing professional development?
- A. Seeking guidance regarding internal audit best practices from The IIA
- B. Giving consideration to certain areas of specialization as part of development planning
- C. Retaining supervisory reviews conducted on the basis of the development plan
- D. Retaining evidence of training in the form of continuing education credits
Answer: D
NEW QUESTION # 30
Which of the following organizations has reached the most mature level of corporate social responsibility?
- A. An organization that is able to provide goods and services society needs and thus maximizes profit to its owners.
- B. An organization that requires its decision makers to act with equity, fairness, and respect for the rights of individuals.
- C. An organization that is willing to make contributions not mandated by law or economics and expects no payback.
- D. An organization that ensures compliance to legal frameworks of the countries in which it operates and sells its products.
Answer: B
NEW QUESTION # 31
An internal auditor is assessing the risk of employees falsifying reimbursement requests for business-related meals or travel. Which of the following procedures would the internal auditor most likely perform first?
- A. Determine whether or not the payroll/accounting department has been subject to regular review.
- B. Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
- C. Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
- D. Review the supplemental documentation provided for a sample of reimbursement requests.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 32
Which of the following actions would be considered a violation of the Standards?
I.Drafts of engagement communications were reviewed with the audit client to obtain input. The client's comments were considered when developing the engagement final communication.
II.An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development.
III.Given limited resources,the chief audit executive performed a risk analysis to determine which functions to audit.
- A. IIonly
- B. I and IIIonly
- C. I,II,and III.
- D. None of the above.
Answer: D
NEW QUESTION # 33
Which of the following is true about a system of internal control?
- A. Strategy should fit the system of internal control.
- B. Articulating measurable objectives is part of internal control.
- C. Technology does not change the internal control landscape.
- D. Internal control should be updated at least annually.
Answer: A
NEW QUESTION # 34
Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?
- A. Reviewing journal entries for accuracy and completeness.
- B. Comparing the policies and procedures to regulatory collections guidance.
- C. Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists
- D. Advising management on streamlining the recording of accounts receivable.
Answer: D
NEW QUESTION # 35
An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?
- A. The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.
- B. The external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.
- C. The external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.
- D. The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.
Answer: C
NEW QUESTION # 36
A company's chief audit executive determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following actions would be the least acceptable?
- A. Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.
- B. Notify the audit committee of the problem and consult with them regarding outsourcing the audit engagement to a qualified external auditing firm.
- C. Determine the requisite knowledge needed and obtain the proper training for auditors if such training is available within the appropriate time framework outlined by the audit committee.
- D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.
Answer: A
NEW QUESTION # 37
When comparing an organization's current performance to that of the prior year, an internal auditor found that:
Total labor costs had increased.
More overtime costs had been incurred.
The total number of workers had increased.
Net income was 10 percent lower.
Based solely on this information, which of the following is a valid conclusion?
- A. Net income per worker decreased.
- B. Worker efficiency decreased.
- C. Total labor hours increased.
- D. Wage rates increased.
Answer: A
NEW QUESTION # 38
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