IIA IIA-CIA-Part1 Practice Verified Answers - Pass Your Exams For Sure! [2021]
Valid Way To Pass Certified Internal's IIA-CIA-Part1 Exam
NEW QUESTION 42
Which of the following statements best describes the competency requirement for an auditor regarding fraud risks encountered in an engagement execution?
- A. The auditor is not expected to have any competency requirement regarding fraud since the role of investigating and detecting fraud belongs to other functions in the organization.
- B. The auditor should be able to have comparable competencies of a person whose primary responsibility is detecting and investigating fraud.
- C. The auditor must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.
- D. The auditor must be able to have an appreciation of the fundamentals of fraud detection and investigation techniques.
Answer: C
NEW QUESTION 43
The chairperson of an organization's audit committee has obtained a risk management report that identifies significant industry concerns that impact the organization. The chairperson has asked the chief audit executive (CAE) to review these concerns and advise if they are relevant to the organization. How should the CAE respond?
- A. Decline the engagement because it impairs the internal audit activity's independence.
- B. Decline the engagement because it is outside of the scope of the internal audit charter.
- C. Accept the engagement but inform senior management of the request.
- D. Accept the engagement but communicate only with the audit committee to protect the confidentiality of the request.
Answer: C
NEW QUESTION 44
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?
- A. Identify key stakeholders and their expectations.
- B. Delegate authority to members of senior management.
- C. Determine the organization's overall risk appetite.
- D. Establish a governance committee.
Answer: A
NEW QUESTION 45
Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?
- A. Decision trees rating actual performance against requirements.
- B. A Bedford analysis of orders filled to average delivery times.
- C. Queuing theory to assess potential bottlenecks in the process.
- D. A program evaluation and review technique chart.
Answer: C
NEW QUESTION 46
An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?
- A. Using a team under the direction of the organization's chief audit executive, and obtaining validation from a former manager of the internal audit activity.
- B. Engaging an external industry associate that performed a similar review for a supplier of the organization.
- C. Selecting a team from an independent entity that previously employed the chief audit executive of the organization.
- D. Using the same external service provider because of its competency and experience with the organization.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION 47
An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system.
Which function, if previously performed by the auditor, would represent a conflict of interest?
- A. Signing timekeeping cards for subordinates.
- B. Reviewing shipping documents for accuracy.
- C. Monitoring the allowance for doubtful accounts.
- D. Writing procedures for the handling of duplicate payments.
Answer: D
NEW QUESTION 48
Organizations that use a highly structured command-and-control management approach are at greater risk of:
- A. Negative consequences that result from lower-level staff's unwillingness to confront errors by superiors.
- B. Erosion of staff morale due to perceptions of ineffective leadership.
- C. Delayed response due to the inability to reach consensus among decision makers.
- D. Waste and abuse of organizational resources resulting from management override of controls.
Answer: A
NEW QUESTION 49
The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?
I. Board of directors.
II. Senior management.
III. Shareholders.
IV. External auditors.
- A. I, II, and III only
- B. I, III, and IV only
- C. I and II only
- D. II only
Answer: C
NEW QUESTION 50
After completing a net present value (NPV) calculation on a proposed project, an analyst explores the change in NPV with changes in the interest rate. This additional analysis is referred to as:
- A. Decision analysis.
- B. Simula-tion.
- C. Variance analysis.
- D. Sensitivity analysis.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 51
According to the COSO framework, which of the following is not a principle of internal control?
- A. Human resource policies and practices.
- B. Management's philosophy and operating style.
- C. Integrity and ethical values.
- D. Risk assessment.
Answer: D
NEW QUESTION 52
Which of the following is a valid statement about the use of visual observations during an audit engagement?
- Visual observations can be used to detect ineffective controls, idle resources, and safety hazards. - Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement. - Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
- Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization's senior management.
- A. 1 and 2 only.
- B. 1 and 4 only.
- C. 2 and 3 only.
- D. 3 and 4 only.
Answer: A
NEW QUESTION 53
Which of the following is a benefit from reduced testing during a particular phase of an
audit engagement?
- A. The level of planned audit risk is lowered.
- B. The size of the internal audit activity can be reduced.
- C. There is less concern about assessing inherent risk.
- D. Additional audit hours are available for pursuing other engagement objectives.
Answer: D
NEW QUESTION 54
Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 55
According to the International Professional Practices Framework, a primary purpose of evaluating the adequacy of an organization's risk management, control, and governance processes is to determine if it:
- A. Assures the reliability and integrity of information used by management.
- B. Mitigates inherent risk.
- C. Provides reasonable assurance that the organization's objectives will be met.
- D. Was designed to ensure compliance with policies, plans, procedures, laws, and regulations.
Answer: C
NEW QUESTION 56
Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
Company A exhibits a higher standard of ethical behavior than does company B.
Company A has established objective criteria by which an employee's actions can be evaluated.
The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
- A. 2 only.
- B. 2 and 3 only.
- C. 3 only.
- D. 1 and 2 only.
Answer: A
NEW QUESTION 57
......
IIA IIA-CIA-Part1 Pre-Exam Practice Tests | ITPassLeader: https://www.itpassleader.com/IIA/IIA-CIA-Part1-dumps-pass-exam.html
IIA-CIA-Part1 practice test questions, answers, explanations: https://drive.google.com/open?id=1eSwohm9zYL_v775DMjIqbt7ncFNDnVoS