IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 121:

  What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?

  A. Diversifying the risk that network access will not be available to legitimate, authorized users.

  B. Accepting the risk that there may be attempts at unauthorized access to the network.

  C. Avoiding the risk of having a direct network connection to un-trusted networks.

  D. Sharing the risk that either firewall could be compromised by hackers.

  Correct Answer: A

• Question 122:

  If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

  A. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.

  B. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

  C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

  D. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

  Correct Answer: C

• Question 123:

  An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.

  Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

  A. Confidentiality.

  B. Objectivity.

  C. Integrity.

  D. Competency.

  Correct Answer: B

• Question 124:

  Allegations have been made that an organization's share price has been manipulated.

  Which of the following would provide an internal auditor with the most objective evidence in this case?

  A. Major shareholders of the organization.

  B. Large customers of the organization.

  C. Former members of management.

  D. Former financial consultants.

  Correct Answer: D

• Question 125:

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

  A. The board.

  B. The chief audit executive.

  C. Senior management.

  D. The external auditors.

  Correct Answer: B

• Question 126:

  During an account receivables audit, an internal auditor found a significant number of input errors resulting in a $500, 000 balance understatement.

  Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?

  A. Who?

  B. How?

  C. Why?

  D. When?

  Correct Answer: C

• Question 127:

  Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

  A. The CAE initials and dates every working paper after it has been reviewed.

  B. The CAE completes an engagement working paper checklist.

  C. The CAE prepares a memorandum discussing the results of the working paper review.

  D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.

  Correct Answer: D

• Question 128:

  When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?

  1.

  Include copies of all client files that were reviewed for the audit.

  2.

  Avoid the use of professional, industry-appropriate jargon and technical terms.

  3.

  Indicate the original sources of all data and information used in the workpapers.

  4.

  Leave blank space for cross-references to be completed during the post-audit process.

  A. 1 and 2 only

  B. 1 and 4 only

  C. 2 and 3 only

  D. 3 and 4 only

  Correct Answer: C

• Question 129:

  During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole.

  This is an example of which of the following analytical auditing procedures?

  A. Reasonableness test.

  B. Regression analysis.

  C. Benchmarking.

  D. Trend analysis.

  Correct Answer: C

• Question 130:

  During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.

  Which of the following tests would best help the internal auditor detect fraudulent activity?

  A. Check inventory levels.

  B. Search for gaps in check numbers.

  C. Compare vendor summaries.

  D. Review raw material purchase quantities.

  Correct Answer: A