According to the COSO Enterprise Risk Management - Integrated Framework, which of the following statements is true regarding the role of risk appetite in an organization?
A. Risk appetite reflects the organization's risk philosophy and influences its operating style.
B. A high risk appetite may limit capital investment in high risk areas.
C. Risk appetite is determined in part by how an entity allocates its resources.
D. Risk appetite is often best measured in the same units as its related objective.
Feedback on engagements from audit clients, annual benchmarking of the internal audit activity's (IAA's) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?
A. Completing internal assessments.
B. Determining the level of residual risk.
C. Identifying conflicts of interest.
D. Developing control processes.
Which type of control is designed to directly mitigate internal and external risks at the organization wide level, furthering the achievement of many overall organizational objectives?
A. Process-level control.
B. Entity-level control.
C. Transaction-level control.
D. Complementary control.
A small not-for-profit organization with limited resources is unable to adequately maintain appropriate segregation of duties. Considering the organization's resource constraints, which type of controls would best mitigate segregation of duty risks?
A. Application controls.
B. Detective controls.
C. Preventive controls.
D. Compensating controls.
According to IIA guidance, which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?
A. A report on the results of the assessment is issued upon completion, and progress on implementing recommended improvements must be reported monthly.
B. The results are reported upon completion in confidence directly to the board, and management is advised only of the recommendations and improvement action plans.
C. The results are shared with the board and management upon completion, and monitoring of recommended improvements must be reported at least annually.
D. The results are communicated upon completion to the board and management, but action plans for recommended improvements do not have to be reported.
According to IIA guidance, which of the following best describes acceptable methods for internal auditors to obtain qualified continuing professional education hours?
A. Volunteering in relevant professional organizations, formal education, and online training courses.
B. Volunteering in relevant professional organizations, formal education, and tutoring college students.
C. Volunteering in relevant professional organizations, on-line training courses, and tutoring college students.
D. Formal education, on-line training courses, and tutoring college students.
In which of the following circumstances is it apparent that the internal auditor exercised due professional care in carrying out his duties?
1.
The internal auditor weighed the cost of the engagement against its potential benefits.
2.
The internal auditor used anonymous information from a whistleblower to report the existence of fraudulent activity.
3.
The internal auditor found minor and major instances of fraud and highlighted only the major instances in its report, in consideration of the board's limited time.
4.
The internal auditor decided to use new auditing software to assist with the statistical analysis required during the engagement.
A. 1 and 2 only
B. 2 and 3 only
C. 3 and 4 only
D. 1 and 4 only
Which of the following is not a typical objective of any training plan developed for internal audit activity staff?
A. Consistency.
B. Economy.
C. Quality.
D. Relevance.
The chief audit executive is revising policies relating to independence and objectivity of the internal audit activity. Which of the following would be a part of the revised policies document?
A. Any auditor that received high-value gifts from an audit client must report it to their supervisor.
B. Any auditor that received gifts of low-value promotional items from an audit client must report it to their supervisor.
C. An auditor does not need to complete an annual conflict of interest form unless the auditor's independence status has changed.
D. An auditor may provide consulting services relating to operations for which they had previous responsibilities.
The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?
A. Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.
B. Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.
C. Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.
D. Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only IIA exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your IIA-CIA-PART1 exam preparations and IIA certification application, do not hesitate to visit our Vcedump.com to find your solutions here.