IIA IIA-CIA-PART1 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART1 Online Questions & Answers

• Question 1:

  An internal auditor is reviewing the results of an employee survey at a mining company. Which of the following would alert the auditor to a potential ethics issue?

  A. Women account for 20% of the total number of employees in the company.
  B. Thirty percent of employees feel confident in raising concerns without a fear of retaliation.
  C. Most employees believe that transparent and fair decision-making forms the basis of business ethics.
  D. Employees with longer work experience believe that they deserve more privileges than new hires.
  D. Employees with longer work experience believe that they deserve more privileges than new hires.

• Question 2:

  Senior management is eager to assess the organization's risks with regard to electricity sales processes, but the senior management team does not know where to start. How can the internal audit activity assist?

  A. Outsource the identification of best practices for risk management to an external third party.
  B. Perform an audit engagement to identify risk management practices deployed in electricity sales processes.
  C. Recommend reporting the lack of risk management to government authorities and request guidance.
  D. Facilitate a self-assessment workshop with the employees responsible for process execution.
  B. Perform an audit engagement to identify risk management practices deployed in electricity sales processes.

• Question 3:

  Which of the following best describes a purpose for the internal audit charter?

  A. The internal audit charter authorizes the internal audit activity's reporting structure and clearly defines the roles of each internal auditor.
  B. The internal audit charter defines the roles and responsibilities of the chief audit executive, board of directors, and senior management.
  C. The internal audit charter authorizes access to records, personnel, and physical properties relevant to the performance of audit engagements.
  D. The internal audit charter defines the criteria by which the internal audit activity's performance will be evaluated.
  C. The internal audit charter authorizes access to records, personnel, and physical properties relevant to the performance of audit engagements.

• Question 4:

  As part of a fraud investigation by regulators, a court order was issued to a bank. The court order requested the chief audit executive (CAE) to provide access to a number of audit reports and workpapers, some of which included customers' confidential information such as transaction activity and other personal details. What is the appropriate response by the CAE?

  A. Reject the court order, citing a potential breach of customers' confidentiality agreement.
  B. Consult with legal counsel to determine what information to provide.
  C. Respond promptly and provide all that was requested by the court order.
  D. Seek permission from customers prior to sharing their information.
  B. Consult with legal counsel to determine what information to provide.

• Question 5:

  The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?

  A. Take no action, as there is no impairment to independence.
  B. Remove the new internal auditor from the engagement team.
  C. Discuss the matter with the appropriate personnel to alleviate concerns.
  D. Closely supervise the new auditor and carefully review his work.
  C. Discuss the matter with the appropriate personnel to alleviate concerns.

• Question 6:

  Considering the concepts of organizationwide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?

  A. Transaction-level control.
  B. Management-oversight control.
  C. Governance control.
  D. Process-level control.
  B. Management-oversight control.

• Question 7:

  The principle that "no action should be taken that may harm in some way the least fortunate people" is an expression of which of the following more general ethical principles?

  A. Utilitarian benefits.
  B. Personal virtues.
  C. Religious injunctions.
  D. Distributive justice.
  D. Distributive justice.

• Question 8:

  According to IIA guidance, which of the following is true with regard to the internal audit charter?

  1. It specifies the minimum resources needed for assurance engagements.

  2. It requires final approval from senior management.

  3. It defines the internal audit activity's authority and responsibilities.

  4. It describes the expectations for communicating the results of a quality assurance and improvement program.

  A. 1 and 4 only.
  B. 3 and 4 only.
  C. 1, 2 and 4.
  D. 2, 3, and 4.
  B. 3 and 4 only.

• Question 9:

  During fieldwork, an internal auditor located a significant internal control issue. Without identifying the origins of the issue, the auditor concluded the engagement and included the issue in the final audit report. To enhance audit quality, which of the following skills should the internal auditor improve?

  A. Business acumen.
  B. Critical thinking.
  C. Communication.
  D. Audit report writing.
  B. Critical thinking.

• Question 10:

  According to IIA guidance, which of the following activities would typically be examined when using the maturity model approach for assessing an organization's risk management program?

  A. Monitor and review.
  B. Performance measurement.
  C. Setting the context.
  D. Communication.
  B. Performance measurement.