Free IIA IIA-CIA-Part1 Exam Dumps and IIA-CIA-Part1 Exam Questions

Question No: 1

MultipleChoice

An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing ( Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations.

According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

Options

ARefrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity
has addressed all areas of nonconformance and the audit committee has been notified.

BRefrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.

CIndicate that the internal audit activity operates in partial conformance with the Standards t as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.

DUpdate and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to ail parties who received the original reports.

Question No: 2

MultipleChoice

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

Options

AProceed with the audit engagement, but do not include the relative's information.

BHave the chief audit executive and management determine whether the auditor should continue with the audit engagement.

CDisclose in the engagement final communication that the relative is a customer.

DImmediately withdraw from the audit engagement.

Question No: 3

MultipleChoice

Which of the following is most likely to be considered a control weakness?

Options

AVendor invoice payment requests are accompanied by a purchase order and receiving report.

BPurchase orders are typed by the purchasing department using prenumbered forms.

CBuyers promptly update the official vendor listing as new supplier sources become known.

DDepartment managers initiate purchase requests that must be approved by the plant superintendent.

Question No: 4

MultipleChoice

The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?

Options

AInternal auditors found no instances of double billing and concluded there were no significant risks in this area.

BInternal auditors documented the scope and methodology of the data testing.

CInternal auditors discussed with management how data is safeguarded.

DInternal auditors received formal performance feedback from the engagement supervisor.

Question No: 5

MultipleChoice

An internal auditor is performing testing to gather evidence regarding an organization's inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of the following risks?

Options

Aincorrect rejection risk

BIncorrect acceptance risk.

CTolerable misstatement risk.

DAnticipated misstatement risk

Question No: 6

MultipleChoice

Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?

Options

AReview the organization's ethical value structure and reporting procedures.

BReview what the organization considers to be ethical behavior, such as the employee code of conduct.

CReview employee survey responses and follow up on those that suggest weaknesses in the ethical climate.

DReview the organization's records to ensure all employees have signed statements that they will follow ethical practices.

Question No: 7

MultipleChoice

A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annual snowfall for the coming winter. Which of the following best describes this type of risk?

Options

AResidual.

BNet.

CInherent.

DAccepted.

Question No: 8

MultipleChoice

Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?

Options

AThe internal audit activity must have auditors on staff who collectively possess all of the competencies required to fulfill the internal audit plan,

BAll internal auditors on staff should possess the knowledge, skills, and competencies needed to perform any assurance engagement on the audit plan.

CThe internal audit activity must possess or obtain the competencies needed to carry out their professional responsibilities, including providing relevant advice and recommendations.

DInternal auditors collectively are responsible for ensuring that the internal audit activity has the competencies required to fulfill the internal audit plan.

Question No: 9

MultipleChoice

Which statement accurately describes the authority of the internal audit activity as outlined in the audit charter?

Options

AThe chief audit executive (CAE) shall report directly to the board and administratively to the CEO.

BThe CAE shall provide senior management and the board with performance updates quarterly.

CThe internal audit team shall have full access to the organization's records, physical property, and personnel required to conduct audit engagements.

DThe internal audit activity shall maintain a quality assurance and improvement program in conformance with the Standards.

Question No: 10

MultipleChoice

A chief audit executive (CAE) has just joined an organization with an existing internal audit activity. Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?

Options

AEnsure the limitations are disclosed through communication with the board and senior management, so that the internal audit activity can continue operating under the same organizational structure.

BRequest that the board restructure the reporting line of the internal audit activity to ensure the CAE has unrestricted access to the board.

CRotate internal audit assignments among members of the internal audit activity to minimize the effects of the current structure.

DTrain internal auditors about organizational independence and have them sign an acknowledgment of understanding.

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