IIA-CIA-Part1 Practice Test Questions Answers Updated 190 Questions
IIA-CIA-Part1 dumps & Certified Internal Sure Practice with 190 Questions
NEW QUESTION 23
According to the Standards,which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I.The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.
II.Treasury management has not instituted any risk management policies.
III.Due to the recent sale of a division,the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV.The external auditors have indicated some difficulties in obtaining account confirmations.
- A. I and IIonly
- B. I,II,and IIIonly
- C. II,III,and IVonly
- D. I and IVonly
Answer: B
Explanation:
Topic 3, Volume C
NEW QUESTION 24
Which of the following would be outside the scope of acquiring and developing human resources for an internal audit department?
- A. Conducting individual counseling sessions regarding professional development and performance.
- B. Requiring audit staff to participate in continuing education activities.
- C. Evaluating auditors' compliance with standards and level of audit effectiveness.
- D. Writing job descriptions for audit staff, audit managers, and other auditing positions.
Answer: C
NEW QUESTION 25
A company produces a product that consists of materials X, Y, and.
The product is mixed so that:
The quantity of material X used is one-third more than that of material Y.
The quantity of material Y used is one-fourth less than that of material Z.
If the company used 24, 000 units of material Z during a period, what is a reasonable estimate of the amount of material X used?
- A. 32, 000
- B. 24, 000
- C. 18, 000
- D. 8, 000
Answer: B
NEW QUESTION 26
In a well-developed management environment, the internal audit activity would.
- A. 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.
- B. Interface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work.
- C. Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.
- D. Report the results of audit engagements to line management as well as to senior management.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 27
Which of the following best describes the trait that an internal auditor exercises when considering the extent of work needed to achieve the engagement's objectives?
- A. Independence.
- B. Due professional care.
- C. Proficiency.
- D. Objectivity.
Answer: B
NEW QUESTION 28
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?
- A. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
- B. Stakeholders will have more assurance that the risks are assessed consistently.
- C. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
- D. Management will be able to reduce inherent risk because they will have a better understanding of risk.
Answer: B
NEW QUESTION 29
What conclusion can be reached by comparing a random sample of vendor invoices to purchase orders?
- A. No duplicate payments were made.
- B. Invoices were for authorized purchases.
- C. Authorized invoices were paid.
- D. No duplicate invoices were received.
Answer: B
NEW QUESTION 30
Which of the following actions should an internal auditor take to exercise due professional
care?
1.Consider the probability of significant noncompliance in each audit engagement.
2.Weigh the cost of assurance against the benefits.
3.Perform assurance procedures with sufficient care to ensure that all risks are identified.
- A. 1 and 2 only
- B. 1,2,and 3
- C. 2 and 3 only
- D. 1 and 3 only
Answer: A
NEW QUESTION 31
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. Wage rates increased.
- D. Total labor hours increased.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 32
A chief audit executive (CAE) is reviewing the internal audit activity's performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity's quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?
- A. The scope and frequency of external assessments.
- B. The type of audit productivity and performance statistics reported.
- C. The adequacy of the day-to-day supervision and review process.
- D. The overall effectiveness of the internal audit activity's periodic self assessments.
Answer: C
NEW QUESTION 33
During an engagement, an internal auditor decided to use variance analysis as an auditingtechniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?
- A. Conclude that the budget was unreasonably set and accept the deviations.
- B. Gather additional information to determine the cause of the deviations.
- C. Report the deviations immediately to the audit committee.
- D. Perform alternative forms of analytical procedures which provide no deviations.
Answer: B
NEW QUESTION 34
Which of the following components influences the risk consciousness of an organization's people and is the basis for all other components of enterprise risk management?
- A. Information and Communication.
- B. Objective setting.
- C. Risk Assessment.
- D. Internal Environment.
Answer: D
NEW QUESTION 35
An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?
- A. Employ simple random sampling.
- B. Sample so that the probability of a given inventory item being selected is proportional to its book value.
- C. Select those items that are most easily inspected.
- D. Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
Answer: B
NEW QUESTION 36
A computer system automatically locks a user's account after three unsuccessful attempts to log on.
Which type of control does this scenario represent?
- A. Compensating control.
- B. Detective control.
- C. Preventive control.
- D. Corrective control.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 37
The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?
I.Board of directors.
II.
Senior management.
III.
Shareholders.
IV.
- A. I and II only.
- B. II only.
- C. I, III, and IV only.
External auditors. - D. I, II, and III only.
Answer: A
NEW QUESTION 38
According to the Standards, which of the following statements best describes the required content of the chief audit executive's (CAE) report to senior management and the board on the internal audit activity (IAA)?
- A. The CAE must report on auditors' continuing education activities, staffing changes, and
any outsourcing to external parties. - B. The CAE must report on significant risk exposures, control issues, and governance issues.
- C. The CAE must report on quality assurance techniques, statistical analysis methods, and other analytical processes used.
- D. The CAE must report on policies, procedures, and best practices of the IAA.
Answer: B
NEW QUESTION 39
What should the internal auditor's role be in assessing the organization's ethical climate?
- A. Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate.
- B. Evaluate the effectiveness of the organization's strategies and processes for achieving the desired level of legal and ethical compliance.
- C. Perform background checks of potential new employees before they are hired by the organization.
- D. Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.
Answer: B
NEW QUESTION 40
Which of the following is an advantage of email surveys compared to face-to-face interviews?
- A. They have higher rates of response.
- B. They are less expensive.
- C. Survey designers are able to use a broader variety of questions.
- D. Respondents can easily get clarification on questions from survey designers or interviewers.
Answer: B
NEW QUESTION 41
During the course of an audit,an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.
The organization does not have a policy addressing this specific issue,but does have a general policy that all important new discoveries by employees are the property of the organization.
Division management views the employee's actions as extra incentive to retain the employee.
A decision to include the employee's action in the engagement final communication wouldbe:
1.A violation of the IIA Code of Ethics.
2.A violation of the reporting requirements in the Standards.
3.Justified and necessary,according to the IIA Code of Ethics and Standards.
- A. 3only
- B. 1only
- C. 1 and 2only
- D. 2only
Answer: A
NEW QUESTION 42
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
- A. Organizational status and objectivity.
- B. Supervision of the chief audit executive (CAE) by senior management.
- C. Organizational knowledge and skills.
- D. CAE certification.
Answer: A
NEW QUESTION 43
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What are the IIA-CIA-Part1 Exam
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No matter where you are in your profession, the CIA offers you even more career opportunities.
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