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

Question No: 11

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: 12

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: 13

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: 14

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: 15

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: 16

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.

Question No: 17

MultipleChoice

What is the ultimate goal of establishing a robust risk management framework in an organization?

Options

ATo support the organization's risk culture, involving employees at all levels.

BTo ensure that the organization attains a better financial position.

CTo assist the organization in identifying and mitigating key risks.

DTo facilitate the organization's achievement of business goals and objectives.

Question No: 18

MultipleChoice

Which of the following should be part of the internal audit activity's duties?

Options

AActively reporting to the governing body.

BProviding risk management frameworks.

CAssisting management in developing processes and controls to manage risks and issues.

DIdentifying and mitigating significant risks to the organization.

Question No: 19

MultipleChoice

An electrician visits a client to assess the scope of work. After the visit, the sales office compiles and sends the client a proposal based on the electrician's estimation and approved price list. The internal auditor notices that in the last six months, the number of cancelled proposals has increased substantially. Which of the following is a fraud risk scenario that the auditor should consider in this situation?

Options

ASome electricians may be offering clients opportunities for reduced fees if they pay with cash.

BThere is a new competitor in the area who offers better prices.

CSales representatives may be manipulating the proposals to include additional costs.

DAn unauthorized person may be modifying client data and cancelling the proposals.

Question No: 20

MultipleChoice

Which of the following is a consulting service the internal audit activity can perform with respect to the organization's risk management'?

Options

ADelivering assurance on the risk management system

BFacilitating risk assessment workshops

CEvaluating principal risk reporting

DDeciding on the appropriate risk response

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