IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 131:

  Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

  A. It considers tolerable deviation rate more effectively than does statistical sampling.

  B. Sampling risk will be accurately quantified through non-statistical sampling.

  C. Non-statistical sample results must be projected to the population.

  D. Lesser evidence is required to support a conclusion than for statistical sampling.

  Correct Answer: C

• Question 132:

  Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?

  A. Strategic objectives.

  B. Operational objectives.

  C. Reporting objectives.

  D. Compliance objectives.

  Correct Answer: B

• Question 133:

  An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.

  Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

  A. The periodic rotation of procurement officers' assignments to supplier accounts.

  B. A pre-award financial capacity analysis of suppliers.

  C. An automated computer report, organized by supplier, of any invoices for the same amount.

  D. Periodic inventories of kiln-dried wood at the organization's warehouse.

  Correct Answer: A

• Question 134:

  According to IIA guidance, which of the following is the best example of a system application control?

  A. A physical security control over a data center.

  B. A system development life cycle control.

  C. A program change management control.

  D. An input control over data integrity.

  Correct Answer: D

• Question 135:

  Which of the following would be considered a preventive control?

  A. A library control log.

  B. A review of exception reports.

  C. A password lock on a server.

  D. A software scan of financial records for irregularities.

  Correct Answer: C

• Question 136:

  Which of the following are components of the COSO enterprise risk management framework?

  1.

  Objective setting.

  2.

  External environment.

  3.

  Data collection.

  4.

  Control activities.

  A. 1 and 3 only

  B. 1 and 4 only

  C. 2 and 3 only

  D. 2 and 4 only

  Correct Answer: B

• Question 137:

  Why are preventative controls generally preferred to detective controls?

  A. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.

  B. Because preventive controls are more sensitive and identify more exceptions than detective controls.

  C. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.

  D. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

  Correct Answer: A

• Question 138:

  The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?

  A. "Completed with the advance certification of the External Assessors Association for Auditing Review."

  B. "Conforms with the International Standards for the Professional Practice of Internal Auditing."

  C. "Certified 100% accuracy, per the International Standards of External Assessment."

  D. "Compliant with all domestic and international legal statutes, and certified quality assured for ten years."

  Correct Answer: B

• Question 139:

  According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?

  A. A former employee knowledgeable of the IAA who resigned three years earlier from the organization.

  B. A competent employee of an independent external organization that provides co-sourcing services to the IAA.

  C. An employee in an affiliated organization who has never worked directly with the IAA.

  D. An employee in the parent organization who has not had any previous contact with the IAA.

  Correct Answer: A

• Question 140:

  A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

  A. Require that all staff obtain a minimum of two relevant audit certifications.

  B. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

  C. Engage a consultant to benchmark the IAA's training program against its peers.

  D. Assign one experienced manager to better coordinate staff training and development activities.

  Correct Answer: B