Latest IIA IIA-CIA-Part1 Actual Free Exam Questions & Community Discussion, Page 4

Question #40

Which of the following is considered to be a threat to the internal auditor's objectivity?

A. The assigned auditor rotated out of the same business activity three years ago

B. The auditor drafted the operational procedures of the area that she is currently auditing.

C. The auditor received a bonus that was approved by the board of directors.

D. The assigned auditor recommended operational procedures for the organization.

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Correct Answer: B Vote an answer

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Question #41

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

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

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

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

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

Discussion 0

Correct Answer: D Vote an answer

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Question #42

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

A. Training documents should be destroyed at the end of the year to create space for the next year's training documents.

B. The initial review of workpapers should be conducted after the final engagement report is issued.

C. Internal audit staff should be informed regularly of changes to policies and procedures.

D. Independent internal assessments of the internal audit activity should be performed by entry-level staff as part of on-the-job training.

Discussion 0

Correct Answer: C Vote an answer

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Question #43

Which of the following indicates that internal audit independence may be compromised?

A. Internal auditors assigned to the audit engagement did not have the knowledge, skills, and competencies needed to perform their responsibilities.

B. Material observations were intentionally left out of the audit report.

C. The internal auditor maintains a close personal relationship with operational management.

D. An internal auditor failed to apply professional skepticism while performing audit tests in an area overseen by an experienced, reputable manager

Discussion 0

Correct Answer: B Vote an answer

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Question #44

Which of the following is the primary benefit of an effective professional development program for internal auditors?

A. An effective program may ensure that HA Standards requirements are adhered to during audit engagements

B. An effective program may ensure internal auditors' effectiveness in setting the organization's nsk management process

C. An effective program may clarify management's expectations of the auditors and their responsibilities to the organization

D. An effective program may enhance internal auditors' business acumen

Discussion 0

Correct Answer: D Vote an answer

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Question #45

Which of the following statements would typically be included in the responsibility section of the internal audit charter?

A. The internal audit activity will have free and unrestricted access to the chief executive officer, audit committee, and chairman of the board of directors.

B. The chief audit executive shall obtain the necessary assistance of personnel in areas where audits are performed, as well as specialized services within or outside of the organization.

C. The internal audit activity shall develop a flexible audit plan, based on a risk assessment conducted at least annually and taking into consideration the risks or control concerns identified by management, and shall submit the plan to the board for approval.

D. The internal audit activity will not implement controls, develop procedures, install systems, prepare records, or engage in activities that may impair internal auditors' judgments.

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Correct Answer: C Vote an answer

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Question #46

Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

A. Internal auditors may conclude that a business unit's current control environment is adequate and effective if the review of the prior year's workpapers and audit report supports that conclusion.

B. Internal auditors may conduct a financial effectiveness engagement in a business unit at any point after being transferred from that area.

C. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results.

D. Internal auditors may conduct an engagement in a business unit at any point after providing a training workshop in that area.

Discussion 0

Correct Answer: C Vote an answer

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Question #47

Which of the following is an example of a risk reduction strategy?

A. Installing cameras around the plant

B. Insuring fixed assets.

C. Absorbing the cost of losses.

D. Outsourcing the payroll function.

Discussion 0

Correct Answer: B Vote an answer

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Question #48

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

A. The profitability impact of its products in developing markets.

B. The amount of political donations to local government races.

C. The number of complaints related to traffic from its new factory.

D. The compensation packages awarded to senior management.

Discussion 0

Correct Answer: C Vote an answer

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Question #49

Who is held responsible for oversight of the organization's risk management framework?

A. Operational management.

B. Head of risk management.

C. Internal auditors.

D. Board of directors.

Discussion 0

Correct Answer: D Vote an answer

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Question #50

A new company's risk management function is developing its cybersecurity risk management program Which of the following actions should be the first priority when developing the program?

A. Determine the cybersecurity framework that will establish and report on the effectiveness of the program

B. Raise cybersecurity awareness across various departments outside of the IT department

C. Define the cybersecurity risk appetite and perform a cost-benefit analysis of the program

D. Start building a cybersecurity culture and set the desired behavior using a bottom-up approach

Discussion 0

Correct Answer: C Vote an answer

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Question #51

A newly hired chief audit executive is reviewing available documentation to provide evidence of conformance with the standard for continuing professional development. Which of the following documents is the most reliable source for this purpose?

A. The organization's training policy.

B. A list of auditors who requested to attend the next audit conference.

C. In house training manual

D. Self-assessments against an internally developed audit benchmark

Discussion 0

Correct Answer: A Vote an answer

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Question #52

Which of the following accurately describes the concept of inherent risk?

A. Internal risk factors assuming no controls are in place

B. Risk factors that exist when controls are in place and operating effectively

C. Combination of internal and external risk factors in their pure state assuming no controls are in place

D. Risk factors that cannot be mitigated because they are innate to a process

Discussion 0

Correct Answer: C Vote an answer

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