IIA-CIA-Part1 Questions (Dumps) [2023] – IIA-CIA-Part1 Exam Questions

1. An Internal auditor accepted a role as an engagement supervisor on a highly specialized and technical engagement for which she did not have the expertise.

Which of the following fundamental principles of The IIA's Code of Ethics did she violate?

2. The internal audit activity was denied access to expenditure and budget reports because they were considered to be confidential.

This situation would result in which of the following limitations of the internal audit activity?

3. A chief audit executive (CAE) is concerned that the internal audit activity is not receiving adequate training and continuing education.

Which of the following approaches should the CAE take?

4. Which of the following Code of Ethics principles specifically requires internal auditors to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?

5. Which of the following would best describe a control implemented to detect cash register disbursement fraud in a large retail store?

6. The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties.

What type of controls would the auditor likely recommend to management to specifically address this problem?

7. Which of the following is an appropriate roe fa the internal audit activity?

8. Which of the following is a control that is used mainly to check the integrity of data entered into a business application, whether the data is entered directly by staff, remotely by a business partner, or through a web-enabled application?

9. According to IIA guidance, which of the following most appropriately justifies the CEO’s decision that the internal audit activity shall be responsible for risk management and investigation at a multinational organization?

10. With regard to the internal audit activity's quality assurance and improvement program, which of the following must be reported to the board?

11. According to IIA guidance, the internal audit activity must be free from interference in which of the following areas in order to maintain organizational independence?

12. Which of the following fundamental principles of The IIA's Code of Ethics is best described as performing work honestly diligently and responsibly?

13. Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

14. Which of the following is true regarding the auditing of soft controls?

15. According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization’s social responsibility program is effective?

16. A global manufacturing company has three regional offices. The chief audit executive (CAE) is concerned about the cost of an upcoming external quality assessment of the internal audit activity. The last external assessment was performed six years ago. Recently, the internal audit staff at one of the regional offices performed an internal assessment.

To ensure conformance with the Standards, what is the most appropriate action for the CAE to take?

17. An organization allows the same individuals to physical access inventory and purchase new assets when supplies are depleted.

Which of the following would best help the organization manage the risk of fraud?

18. Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

19. An experienced internal auditor is planning an assurance engagement of the organization's sales activities. During process walkthroughs and interviews, many sales representatives expressed concerns about management's escalating demands to meet the organization's sales goals.

According to the MA guidance, which of the following is the best application of due professional care in planning the engagement?

20. Which of the following best describes a consulting engagement rather an assurance engagement?

21. It describes the expectations for communicating the results of a quality assurance and Improvement program.

22. Which of the following relates to the concept of due professional care?

23. Which of the following practices is generally most effective to protect internal audit objectivity?

24. The collaborating style for conflict resolution, where the parties promote assertiveness and work together to develop a mutually beneficial solution, is best used in which of the following situations?

25. What is expected of internal auditors in regards to due professional care?

26. Which of the following are some of the requirements of the quality assurance and improvement program (QAIP)?

27. Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?

28. With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?

29. According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?

30. According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?

31. During a monthly internal audit staff meeting, the chief audit executive (CAE) decided to reinforce the importance of internal audit staff being objective in their work.

Which of the following examples would be most appropriate for the CAE to include as part of the meeting presentation?

32. The internal audit activity conducted an organization wide risk assessment. One of the most significant risks identified is associated with the oil price market. The chief audit executive (CAE) is considering including in the annual audit plan an assessment of the effectiveness of oil price risk management. The manager responsible commented that the assessment was not needed, as market risks were regularly addressed by the financial risk committee.

If the CAE decides to include this activity in the annual audit plan anyway, how should it be recorded?

33. Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?

34. Due to unfavorable economic conditions management decided to postpone new investments for the next year.

Which of the following best describes the risk management strategy used to address this situation?

35. Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?

36. A telecommunications organization is planning to cease operations in one or the markets in which it operates due to increasing volatility and uncertainties.

Which of the following risk management techniques is the organization selecting?

37. During an assurance engagement, an internal auditor reviews a tender inviting vendors to submit bids to supply financial services software to the organization. She suspects that the tender was tailored for the bidder who eventually won the contract.

What should the auditor do next?

38. Senior management and the board have expressed concerns about the length of engagements and whether their outcome aligns with the organization's strategies and objectives.

Which of the following actions, if taken by the chief audit executive, could address these concerns?

39. Which of the following would be the most suitable internal control framework for an organization to adopt?

40. What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?

41. An iniernal auditor creates a professional development plan to obtain more experience in the organization's environmental, social, and corporate governance initiatives.

Which of the following would the auditor include in the plan to support these objectives?

42. Once an organization's risks are identified, what would be the next step to ensure resources are properly allocated to manage those risks?

43. An internal audit activity is taking steps to promote professional development among the staff, and is in the process of implementing a mentorship program.

According to HA guidance, which of the following is important for a successful mentorship program?

44. When an organization purchases a derivative contract in the stock market to limit the potential loss in the value of a security, the organization is applying which of the following risk management techniques?

45. Which of the following best demonstrates internal auditors performing their work with proficiency?

46. A new internal audit activity is considering the adoption of a risk and control framework.

Which of the following is the most appropriate consideration during this process?

47. During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud.

To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?

48. Which of the following situations is most likely to threaten the independence of the internal audit activity?

49. According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?

50. A financial services organization's board is assessing increased regulations and its effect on current industry lending practices.

Which of the following committees would help the board identify and assess the effects of the increased regulations?

51. Which of the following requests, if accepted by the internal audit activity, would impair its independence?

52. Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?

53. Which of the following statements is true regarding how the scope of a consulting engagement should be established?

54. An internal auditor at a multinational organization is reviewing the effectiveness of the organization's risk management framework.

In this scenario, which of the following statements is true?

55. An internal auditor believes that the internal audit activity's independence is impaired.

Which of the following actions should the internal auditor take first?

56. Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?

57. Which of the following is an area that an organization would most likely include as part of its corporate social responsibility reporting?

58. Which of the following is an indicator that the organization s risk management process is effective?

59. Which of the following would most likely be classified as a consulting engagement?

60. Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

61. Which of the following best illustrates the principle of due professional care?

62. The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions The CAE was an accounting manager for the organization six months ago.

How should she respond to the request?

63. Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization's internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to degenerate. as previous audit reports also showed a large number of issues.

What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

64. Which of the following is a detective control?

65. Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues.

Which of the following competencies is the engagement supervisor demonstrating?

66. Which of the following describes a responsibility of operating management in an organization's corporate social responsibility (CSR) efforts?

67. Which of the following best describes the role of internal control frameworks?

68. Which of the following qualifies as an acceptable consulting service provided by the internal audit activity?

69. Which of the following is true about corporate social responsibility (CSR)?

70. An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account.

What is the best course of action for the auditor to take?

71. Nearing the completion of fieldwork, an internal auditor shared the draft report findings with management prior to the closing meeting. During the closing meeting, management expressed dissatisfaction in that they were not familiar with some of the findings. Management also noted that some aspects of the report seemed confusing.

Which of the following competencies appears to have been lacking in this scenario?

72. Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?