IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 361:

  Which of the following risk factors is most subjective?

  A. Changes in staff, systems, or the environment.

  B. Prior audit findings.

  C. Size of the unit being audited.

  D. Competency of operating management.

  Correct Answer: D

• Question 362:

  According to the International Professional Practices Framework, a review team must express an opinion on which of the following when performing an external assessment of an internal audit activity?

  I. Conformance with the Standards and IIA Code of Ethics.

  II. Effectiveness of continuous improvement activities.

  III. Feedback from internal audit customers and other stakeholder groups.

  IV.

  Efficiency and effectiveness of the internal audit activity's administration processes.

  A.

  I only

  B.

  III only

  C.

  I and II only

  D.

  II and IV only

  Correct Answer: A

• Question 363:

  The first stage in the development of a crisis management program is to:

  A. Formulate contingency plans.

  B. Conduct a risk analysis.

  C. Create a crisis management team.

  D. Practice the response to a crisis.

  Correct Answer: B

• Question 364:

  A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?

  A. Employees.

  B. Senior management.

  C. Common stockholders.

  D. Outside consultants.

  Correct Answer: C

• Question 365:

  Why is the concept of residual risk important?

  A. Because residual risk is difficult to measure.

  B. Because residual risk is all of the risk that remains after controls are established.

  C. Because the cost-benefit analysis supporting control design is part of the measure of residual risk.

  D. Because the risk that remains after control design and implementation needs to be acceptable to senior

  management.

  Correct Answer: D

• Question 366:

  Which of the following would be the best example of a monitoring control for a chain of restaurants?

  A. Each restaurant manager reconciles the cash received with the food orders recorded on the computer.

  B. All food orders must be entered through the computer, and there is segregation of duties between the food servers and the cooks.

  C. Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.

  D. Proof of bank deposit is transmitted to corporate headquarters on a daily basis.

  Correct Answer: C

• Question 367:

  Which of the following should be the primary objective of an audit of an entity's business continuity plan?

  A. Cost of testing and updating the plan.

  B. Delegation of responsibilities for the plan.

  C. Relationship of the plan to risk exposures.

  D. Efficiency of the planning procedures.

  Correct Answer: C

• Question 368:

  Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be.

  A. Edit controls on the payroll file.

  B. Appropriate segregation of duties for batch approval.

  C. Validation of hash totals.

  D. Reconciliation of paychecks to the bank account.

  Correct Answer: C

• Question 369:

  Which of the following controls would most likely prevent the input of an unreasonable number of labor hours into a costing system?

  A. Recalculation tests during processing.

  B. Programmed limit tests of input fields.

  C. Reconciliation of input control totals.

  D. Consistency checks of data in input fields.

  Correct Answer: B

• Question 370:

  A daily report which lists unsuccessful attempts to log on to a computer system is A.

  A. Corrective control.

  B. Preventive control.

  C. Detective control.

  D. Compensating control.

  Correct Answer: C