IIA-CIA-Part1 sample questions

Question 1

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

Accepted Answer

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

Answer

Influence regulatory interpretation of law to better match corporate practice.

Answer

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

Answer

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

Question 2

In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?

Accepted Answer

An employee is tampering with customer checks.

Answer

Invoices are not being mailed to customers.

Answer

Employees are submitting fraudulent expense reports.

Answer

The customer service department is not forwarding complaints to the accounts receivable department.

Question 3

What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?

Accepted Answer

Evaluation of the adequacy of internal audit policies and procedures.

Answer

Detailed objectives for internal audit engagements.

Answer

Confirmation that past audit recommendations have been implemented.

Answer

Performance appraisals of the internal audit staff.

Question 4

Which of the following factors related to a n organization's performance management system would not contribute to the organization's success?

Accepted Answer

staff members own the performance management process,thereby ensuring implementation and accountability.

Answer

Performance management is linked to competence and knowledge management.

Answer

Subordinates and superiors have shared responsibility for the performance management process.

Answer

Performance management is integrated into other organizational processes and human resource processes.

Question 5

In a well-developed management environment, the internal audit activity would.

Accepted Answer

Report the results of audit engagements to line management as well as to senior management.

Answer

Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.

Answer

Interface primarily with senior management,minimizing interactions with line managers whA. re the subjects of internal audit work.

Answer

Focus on the maintenance of accounting controls (such as segregation of the duties of authorization,recording,and custody) and report results to the audit committee.

Question 6

According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

Accepted Answer

The chief audit executive.

Answer

The board.

Answer

Senior management.

Answer

The external auditors.

Question 7

Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

Accepted Answer

Results from discussions of audit needs with executive management and the audit committee.

Answer

A review of audit staff education and training records.

Answer

Information about the audit staff size and composition of comparable organizations.

Answer

The results of the audit staffs most recent performance reviews.

Question 8

Which of the following best describes the assessment of risks?

Accepted Answer

Assess the likelihood and/or impact of risk on the achievement of organizational objectives.

Answer

Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.

Answer

Assess the amount of risk an organization can accept while pursuing its objectives.

Answer

Assess alternative strategies to reduce or eliminate major risks.

Question 9

Which of the following statements describes a control failure that is not directly attributable to a customer billing application?
1. End users have raised a number of concerns regarding data integrity.
2. An untested program change is transferred from the test environment to production.
3. Purchase history does not reconcile with accounts receivable for some customers.
4. End user security is inadvertently granted to a n unauthorized individual by management.

Accepted Answer

2 and 4.

Answer

1 and 3.

Answer

1 and 4.

Answer

2 and 3.

Question 10

Which of the following would be the most effective action for an internal audit activity to take in order to a ssist in improving an organization's ethical climate?

I. Review formal and informal processes within the organization that could promote unethical behavior.
II. Conduct surveys of employees, suppliers, and customers regarding ethics.
III. Assess the employees' knowledge of and compliance with the organization's code of conduct.

Accepted Answer

I, II,and III.

Answer

I only

Answer

I and lI only

Answer

II and llI only

Free IIA-CIA-Part1 sample questions