IIA IIA Certifications IIA-CIA-PART1 Questions & Answers

• Question 441:

  Which of the following lists these audit steps in the correct chronological order?

  I. Create the engagement work program.

  II. Conduct the exit conference.

  III. Perform fieldwork.

  IV. Schedule the audit engagement.

  Issue a summary report of audit findings.

  A. I, IV, III, II, V.

  B. I, IV, II, III, V.

  C. IV, I, III, II, V.

  D. IV, III, I, V, II.

  Correct Answer: C

• Question 442:

  In a manufacturing company, which department would be the internal audit activity's most reliable source of information on the controls over minimizing defective goods?

  A. Manufacturing.

  B. Quality control.

  C. Research and development.

  D. Inventory management.

  Correct Answer: B

• Question 443:

  Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration:

  A. The type and nature of the activities to be examined.

  B. Whether employees in key positions of trust are bonded.

  C. The history of losses suffered by the company.

  D. The results of prior risk assessments.

  Correct Answer: A

• Question 444:

  Which of the following is true with respect to the risk assessment process?

  A. The ethical climate should not be included since this factor cannot be measured quantitatively.

  B. More than one risk factor may have to be used to ensure that the risk assessment is comprehensive.

  C. Each risk factor should be given equal weighting in order to reduce the opportunity for bias.

  D. The risk assessment process should be conducted at least every three years.

  Correct Answer: B

• Question 445:

  A quantitative risk assessment model has all of the following advantages except:

  A. Accommodating a large number of risk factors in the assessment.

  B. Providing documentation for the chief audit executive, who must defend the long-range audit plan.

  C. Providing a systematic method of applying weightings to risks and priorities.

  D. Removing the need for judgment on the part of the chief audit executive.

  Correct Answer: D

• Question 446:

  Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

  A. Attending audit staff meetings.

  B. Verifying that all completed audit tests are fully documented.

  C. Publishing an article on the company's internal audit department.

  D. Obtaining experience on the job.

  Correct Answer: C

• Question 447:

  Risk assessments are valuable to the internal audit activity's planning process because they assist in:

  A. Eliminating all areas with low risk from the audit plan.

  B. Educating management on the importance of keeping the internal audit activity informed of organizational changes.

  C. Identifying the audit universe or auditable activities that need to be reviewed.

  D. Identifying risks that management and the internal auditors have overlooked.

  Correct Answer: C

• Question 448:

  Risk assessments can vary in format, but generally include.

  I. A description of identified risks.

  II. Tests of audit controls.

  III. A system of rating risks.

  IV.

  Sample size identification.

  A.

  I and II only

  B.

  I and III only

  C.

  I, III, and IV only

  D.

  II, III, and IV only

  Correct Answer: B

• Question 449:

  Internal auditors can benefit from a strong relationship with the external auditors because external auditors can: A. Provide internal auditors with an independent and knowledgeable viewpoint.

  B. Concur with the internal auditors' reports and thus improve the quality of assurance provided to management.

  C. Increase the effectiveness of internal control sampling techniques.

  D. Assist the internal auditor by providing information obtained from similar audits with other clients.

  Correct Answer: A

• Question 450:

  Using the internal audit department to coordinate regulatory examiners' efforts is beneficial to the organization because internal auditors can:

  A. Influence regulatory interpretation of law to better match corporate practice.

  B. Recommend changes to the scope of the regulatory examiners' review.

  C. Perform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.

  D. Supply evidence of adequate compliance testing through internal audit workpapers and reports.

  Correct Answer: D