IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 111:

  According to IIA guidance, which of the following statements is true?

  A. Risks in IT processes are best mitigated by individual controls.

  B. The overall focus of the framework is on significant controls in all critical IT applications.

  C. IT risks and related controls are operational and best identified using a bottom-up approach.

  D. Control process risks are found at multiple layers of the IT environment.

  Correct Answer: D

• Question 112:

  An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?

  A. Apply antivirus and patch management software.

  B. Utilize dedicated and encrypted network connections.

  C. Install a software inventory management application.

  D. Utilize secure socket layer encryption.

  Correct Answer: C

• Question 113:

  Which of the following is a preventive control?

  A. Creating an audit trail.

  B. Placing controls on physical access to inventory.

  C. Reconciling purchase orders with approvals.

  D. Reviewing expense accounts for irregularities.

  Correct Answer: B

• Question 114:

  Which of the following is an example of a transaction-level control?

  A. Human resource policies.

  B. Tone at the top.

  C. Reconciliations of primary accounts.

  D. Inventory counts.

  Correct Answer: C

• Question 115:

  According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?

  A. Benchmarking of the internal audit activity's practices and performance.

  B. Report of internal assessment results, response plans, and outcomes.

  C. Analysis of performance metrics such as cycle times.

  D. Self-assessments and surveys of stakeholder groups.

  Correct Answer: C

• Question 116:

  According to IIA guidance, which of the following statements is false regarding continuing professional education for the internal audit activity (IAA)?

  A. Continuing professional education can be obtained through IAA involvement in research projects.

  B. Employers are responsible for ensuring that the continuing professional education needs of the IAA are met.

  C. Completion of self-study courses fulfills IAA continuing professional education requirements.

  D. Specialized education that meets unique organizational needs cannot qualify as IAA professional development.

  Correct Answer: B

• Question 117:

  According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

  A. The relative complexity, materiality, or significance of matters to which assurance procedures are applied.

  B. The extent of assurance services necessary to ensure that all risks are identified.

  C. The cost of providing the assurance services in relation to potential benefits.

  D. The probability of significant errors, irregularities or instances of noncompliance.

  Correct Answer: B

• Question 118:

  Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?

  A. Which sampling methodology to select for testing.

  B. Which fields to examine on each invoice.

  C. Whether an individual expenditure is allowable.

  D. What level of noncompliance is acceptable.

  Correct Answer: D

• Question 119:

  A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?

  A. Other internal auditors possess sufficient knowledge of accounting principles and techniques.

  B. The candidate's information systems knowledge and real-world experience in internal auditing.

  C. Accounting skills can be learned over time with appropriate training.

  D. An entry level position does not require expertise in any particular area.

  Correct Answer: B

• Question 120:

  This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline. Which of the following would be the best course of action for the CAE to take?

  A. Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

  B. Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.

  C. Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.

  D. Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.

  Correct Answer: C