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What are the IIA-CIA-Part1 Exam
The IIA has high requirements for certified internal auditors. He wants potential CIA clients to demonstrate all the skills and abilities necessary to fulfill current placement obligations. Therefore, the IIA established several requirements of the CIA. Additionally, many of these qualified internal auditor certifications are quite involved in the experience and evaluation needs.
Everyone in the internal audit market recognizes what it takes to be a CIA, they will see it much more positively when you do. Their respect for you will certainly increase today, as will your confidence in your experience.
The CIA is the only identified internal audit accreditation in the world, so it is the best way to interact with your internal accounting skills. Furthermore, the CIA is the only essential designation in the internal audit career and its value does not diminish from country to country.
No matter where you are in your profession, the CIA offers you even more career opportunities.
One of the most interesting elements of the CIA certification is the income of the certified internal auditor. As a CIA, you won't have to work for financial security alone. Rather, you can rejoice in financial success.
NEW QUESTION 315
If an engagement client's operating standards are vague and thus subject to interpretation, the auditor should:
- A. Seek agreement with the client as to the standards to be used to measure operating performance.
- B. Interpret the standards in their strictest sense because standards are otherwise only minimum measures of acceptance.
- C. Omit any comments on standards and the client's performance in relationship to those standards, because such an analysis would be meaningless.
- D. Determine best practices in the area and use them as the standard.
Answer: A
NEW QUESTION 316
According to the International Professional Practices Framework, risk is:
I.Defined as the negative effect of events that are expected to occur.
II.Measured in terms of consequences.
III.Measured in terms of likelihood.
- A. II and III only.
- B. I, II, and III.
- C. I and II only.
- D. I only.
Answer: A
NEW QUESTION 317
An auditor plans to analyze customer satisfaction, including. (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months.
Which of the following statements regarding this audit approach is correct?
- A. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.
- B. Analysis of three months' activity would not evaluate customer satisfaction.
- C. The survey would not consider customers who did not make purchases in the last three months.
- D. Although useful, such an analysis does not address any risk factors.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION 318
An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.
Upon being informed,the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.
Which course of action should the CAE follow?
- A. Report the communication to the organization's general counsel.
- B. Report the instruction to the chairperson of the audit committee.
- C. Inform the head of the organization that the investigation will continue as planned.
- D. Inform the external auditors of the findings and the mandate to stop investigating.
Answer: B
NEW QUESTION 319
The chief audit executive (CAE) of a large organization has been asked by the board to assume responsibility for risk management and compliance operations, both of which are distinct departments within the organization and are subject to periodic audits by the internal audit activity In regards to future audits of these functions which of the following approaches would be most appropriate?
- A. Audits of risk management and compliance functions should be conducted by internal auditors under the supervision of management from both functions
- B. Audits of risk management and compliance functions should be overseen by a senior audit manager within the internal audit activity other than the CAE
- C. Audits of risk management and compliance functions should be earned out by a team of the most experienced auditors overseen by the CAE
- D. Audits of risk management and compliance functions should be overseen by a competent external assurance provider
Answer: D
NEW QUESTION 320
Which of the following corporate travel policies is least likely to be cost-effective?
- A. Traveling to facilities in tourist areas during the off-season when possible.
- B. Selecting the least expensive airline travel available, without regard to total travel time and distance.
- C. Tracking credits for canceled airline reservations.
- D. Negotiating corporate agreements with hotels, airlines, and car rental firms.
Answer: B
NEW QUESTION 321
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?
- A. Results of ongoing monitoring of the internal audit activity's performance must be reported to senior management and the board at least annually
- B. Results of internal assessments need to be reported to the board at least once every five years.
- C. The external assessor must present the findings from the external assessment to senior management and the board upon completion.
- D. Deficiencies within the internal audit activity must be reported to the board as soon as they are noted.
Answer: A
NEW QUESTION 322
A chief audit executive (CAE) submits internal audit activity (IAA) plans and information about significant interim changes to senior management and the board for review. Which other piece of information should the CAE provide to senior management and the board?
- A. The most recent engagement of each member of the audit staff and its duration.
- B. Resource requirements and resource limitations.
- C. Identification of proposed consultants and support staff for the IAA.
- D. The CAE's preferred statistical analysis methods and relevant software to be utilized.
Answer: B
Explanation:
Section: Volume C
Explanation
NEW QUESTION 323
An external quality assurance review which was authorized by the chief audit executive (CAE) indicated significant findings from the Standards. To whom should the final results of the quality assurance review be reported?
- A. The CAE with copies to the board and senior management.
- B. Confidentially to the CAE only
- C. To the senior management with a copy to the board.
- D. To the board with copies to the external auditor or regulatory oversight body.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 324
A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts.
The purchase orders list the name of the vendor and the quantities of the materials ordered.
A possible error that this system could allow is:
- A. Delay in recording purchases.
- B. Payment to unauthorized vendors.
- C. Payment for unauthorized purchases.
- D. Overpayment for partial deliveries.
Answer: D
NEW QUESTION 325
A technology company recently hired an entry-level internal auditor. To achieve conformance with the Standards, which of the following must the newly hired internal auditor possess?
- A. Industry-specific knowledge
- B. At least one audit-related certification
- C. An understanding of fraud and fraud risk.
- D. IT audit expertise.
Answer: C
NEW QUESTION 326
Which of the following is correct regarding the implementation of a quality assurance and improvement program for the internal audit function?
- A. The board has the primary responsibility for implementation of a robust quality assurance and improvement program for internal audit.
- B. An internal audit function that is fully complying with internal assessment of quality can confidently claim it is performing in conformity with the International Professional Practices Framework.
- C. A quality assurance and improvement program is applicable depending on the size and complexity of the audit function.
- D. The chief audit executive can establish a formal quality assurance and improvement program that is led by an audit manager.
Answer: D
NEW QUESTION 327
Which of the following statements is true regarding the disclosure of results of the quality assurance and improvement program?
- A. If the results of both internal and external assessments support conformance with the Standards, the internal audit activity must communicate this to the board and senior management in writing.
- B. If an external assessment reflects an overall conclusion of nonconformance, the internal audit activity may continue to communicate that it conforms with the
- C. If it has been in existence fewer than five years and has no documented external assessment, the internal audit activity may not indicate that it is operating in conformance with the Standards.
- D. If nonconformance affects its ability to fulfill its professional responsibilities or stakeholder expectations, the internal audit activity should disclose nonconformance as well as its impact.
Answer: D
Explanation:
Standards if it discloses a remediation plan, including timeline with subsequent validation.
NEW QUESTION 328
Which of the following is not an appropriate activity for internal auditors to perform?
- A. Highlight matters that require management's attention.
- B. Accumulate data,obtain varying views,and report information to senior management.
- C. Implement solutions for specific organizational problems.
- D. Recommend management seek a consulting firm to advise on outsourcing.
Answer: C
NEW QUESTION 329
An organization's senior management team is awarding substantial bonuses if employees meet financial targets. Which of the following motivators to potentially commit fraud would become most likely in this scenario?
- A. Rationalization
- B. Pressure
- C. Justification
- D. Opportunity
Answer: B
NEW QUESTION 330
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. IV,III,I,V,II.
- B. I,IV,III,II,V.
- C. I,IV,II,III,V.
- D. IV,I,III,II,V.
Answer: D
NEW QUESTION 331
Which of the following is a limitation of using observation as a manual audit procedure?
- A. Observation may cause individuals to behave less critically or carefully if they are aware that other forms of manual audit procedures have already taken place.
- B. Observation is not as persuasive as inquiry due to a lack of direct evidence.
- C. Observation provides information at a certain time and makes it difficult to draw representative conclusions.
- D. Observation is performed specifically to test the validity of documented or recorded information.
Answer: C
NEW QUESTION 332
Which of the following best describes the type of organizational culture known as adaptability culture'?
- A. A culture that places high value on participation and meeting the needs of employees.
- B. A culture that emerges in quick-response and high-risk decision-making environments
- C. A results-oriented culture that values competitiveness and personal initiative
- D. A culture that is characterized by low involvement with environmental and health issues
Answer: B
NEW QUESTION 333
During the audit of taxation processes in the organization internal auditors have verified that all employees of the finance department received training on taxation guidelines. The training is mandatory and is automatically assigned via email invitation to all new employees in the department Which type of controls have the auditors tested?
- A. Detective
- B. Automatic
- C. Preventive
- D. Directive
Answer: D
NEW QUESTION 334
Which of the following are acceptable resources for a chief audit executive to use when developing a staffing plan?
Co-sourcing arrangements.
Employees from other areas of the organization.
The organization's external auditors.
The organization's audit committee members.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1,2,and 4 only
- D. 1 only
Answer: A
NEW QUESTION 335
When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:
- A. An audit risk.
- B. A residual risk.
- C. An inherent risk.
- D. A control risk.
Answer: A
NEW QUESTION 336
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