IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 381:

  A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud?

  A. Develop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.

  B. Require all submitted claims to be followed by a signed statement by the dentist testifying to the fact that the claimed procedures were performed.

  C. Send confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the insurance provider.

  D. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

  Correct Answer: A

• Question 382:

  Reportable audit findings must be:

  I. Documented by facts.

  II. Supported by relevant evidence.

  III. Agreed to by management of the audited area.

  IV.

  Convincing enough to compel corrective action.

  A.

  I and IV only

  B.

  II and III only

  C.

  I, II, and IV only

  D.

  I, II, III, and IV.

  Correct Answer: C

• Question 383:

  Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?

  I. Areas where personal information is collected, used, stored, and disseminated.

  II. Inherent risk.

  III. Privacy practices of competitors.

  IV.

  Third-party recipients of information.

  A.

  III only

  B.

  I and II only

  C.

  I, II, and IV only

  D.

  I, II, III, and IV.

  Correct Answer: C

• Question 384:

  When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

  A. Identifying risks to the organization's operations.

  B. Observing and analyzing controls.

  C. Prioritizing known risks.

  D. Reviewing organizational objectives.

  Correct Answer: D

• Question 385:

  If management has not established a risk management process, the internal audit activity could.

  A. Take a proactive role that supplements traditional assurance activities.

  B. Identify and mitigate risks to the organization.

  C. Assume responsibility for the management of identified risks.

  D. Assume primary responsibility for determining if adequate and effective processes are in place.

  Correct Answer: A

• Question 386:

  Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

  A. The department makes long-term investment risk decisions to maximize return on investment.

  B. The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.

  C. Many department functions are duplicated or verified by other department employees.

  D. Deficiencies were found in the appropriate authorization of transactions.

  Correct Answer: A

• Question 387:

  The main reason to establish internal controls in an organization is to:

  A. Encourage compliance with policies and procedures.

  B. Safeguard the resources of the organization.

  C. Ensure the accuracy, reliability, and timeliness of information.

  D. Provide reasonable assurance on the achievement of objectives.

  Correct Answer: D

• Question 388:

  Which of the following is the primary concern of an internal auditor in a comprehensive audit of an organization?

  A. Accuracy of reports on the source and use of funds.

  B. Extent of achievement of the organization's mission.

  C. Confirmation of compliance with policies and procedures.

  D. Appropriateness of procedures related to the budgeting process.

  Correct Answer: B

• Question 389:

  According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?

  I. The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.

  II. Treasury management has not instituted any risk management policies.

  III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

  IV.

  The external auditors have indicated some difficulties in obtaining account confirmations.

  A.

  I and II only

  B.

  I and IV only

  C.

  I, II, and III only

  D.

  II, III, and IV only

  Correct Answer: C

• Question 390:

  The best reason for separating the cash-receiving function from the related record-keeping function is to:

  A. Segregate cash payments from cash receipts.

  B. Provide accountability for cash received.

  C. Minimize misappropriations in cash receipts.

  D. Improve physical security over the cash-receiving function.

  Correct Answer: C