IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 91:

  While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

  A. Resource management.

  B. Coordination.

  C. Due professional care.

  D. Engagement supervision.

  Correct Answer: C

• Question 92:

  When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?

  1.

  Findings of the last audit engagement performed.

  2.

  Probability of significant errors, irregularities, or noncompliance.

  3.

  Extent of work needed to achieve engagement objectives.

  4.

  Cost of the engagement versus the potential benefits.

  A. 1 and 4 only

  B. 2 and 3 only

  C. 2, 3, and 4 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 93:

  Management has asked the chief audit executive (CAE) to provide assurance on the organization's automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?

  A. Accept the assignment and use control self-assessment to complete the project.

  B. Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.

  C. Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.

  D. Accept the assignment if the engagement is included in the current audit plan, but inform senior management that the current audit staff does not have the knowledge and skills required.

  Correct Answer: C

• Question 94:

  Which of the following is not an appropriate activity for internal auditors to perform?

  A. Recommend management seek a consulting firm to advise on outsourcing.

  B. Highlight matters that require management's attention.

  C. Implement solutions for specific organizational problems.

  D. Accumulate data, obtain varying views, and report information to senior management.

  Correct Answer: C

• Question 95:

  A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

  A. The government's independent auditor.

  B. The external auditors from an accounting firm.

  C. The internal audit activity.

  D. The agency's chief compliance officer.

  Correct Answer: A

• Question 96:

  Which of the following does not need to be defined in the internal audit charter?

  A. The audit engagements to be performed during the upcoming year.

  B. The internal audit activity's position within the organization.

  C. The scope of internal audit activities.

  D. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.

  Correct Answer: A

• Question 97:

  According to IIA guidance, which of the following statements regarding the internal audit charter is true?

  A. Senior management should approve the charter before it is submitted to the board.

  B. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.

  C. The charter should define the consulting services that the internal audit activity is permitted to perform.

  D. The CEO periodically should assess whether the terms of the charter continue to be adequate.

  Correct Answer: A

• Question 98:

  The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?

  A. Accepting the money would be prohibited only if it were non-customary.

  B. Accepting the money would violate the IIA Code of Ethics.

  C. Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization's code of conduct.

  D. Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.

  Correct Answer: B

• Question 99:

  The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?

  A. The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.

  B. The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.

  C. The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.

  D. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.

  Correct Answer: D

• Question 100:

  An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?

  A. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.

  B. A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.

  C. A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.

  D. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.

  Correct Answer: A