IIA-CIA-Part1 Exam Questions Dumps, Selling IIA Products
IIA-CIA-Part1 Cert Guide PDF 100% Cover Real Exam Questions
IIA-CIA-Part1 exam covers a broad range of topics that are essential for internal auditors to understand. IIA-CIA-Part1 exam consists of 125 multiple-choice questions that are divided into three sections. The first section covers the foundations of internal auditing, including the role and responsibilities of internal auditors, risk management, and governance. The second section covers the tools and techniques used in internal auditing, such as sampling, data analysis, and documentation. The third section covers the business environment, including business processes, financial accounting, and information technology.
NEW QUESTION # 55
An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?
- A. Sample so that the probability of a given inventory item being selected is proportional to its book value.
- B. Select those items that are most easily inspected.
- C. Employ simple random sampling.
- D. Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
Answer: A
NEW QUESTION # 56
Which of the following would be most effective in determining if the percentage of medication orders containing errors improved after a hospital installed a computerized medication-tracking system?
- A. Compare, after adjusting for the number of patients, the proportion of erroneous medication orders before and after system installation.
- B. Compare the number of errors before and after system installation for similar periods.
- C. Compare the proportion of erroneous medication orders before and after system installation for similar periods.
- D. Compare, after adjusting for the number of patients, the number of errors before and after system installation for similar periods.
Answer: C
NEW QUESTION # 57
An internal quality assessment of the internal audit activity should provide the chief audit executive with:
- A. Confirmation of action on past audit recommendations.
- B. Objectives for internal audit engagements.
- C. Recommendations for improvement.
- D. Appraisals of internal audit staff performance.
Answer: C
NEW QUESTION # 58
According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?
- A. Self-assessments and surveys of stakeholder groups.
- B. Benchmarking of the internal audit activity's practices and performance.
- C. Report of internal assessment results, response plans, and outcomes.
- D. Analysis of performance metrics such as cycle times.
Answer: D
NEW QUESTION # 59
During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:
- A. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- B. Recommend to the chief audit executive that a fraud investigation be started.
- C. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
- D. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
Answer: D
NEW QUESTION # 60
A fast-food company is developing a computer simu-lation involving arrival time at a drive-through restaurant. The distribution for arrival times is:
Time Single-Digit Random
Between Arrivals Probability Number Assigned
2 minutes
0.1 0
3 minutes
0.2 1,2
4 minutes
0.3 3,4,5
5 minutes
0.4 6,7,8,9
Six random numbers are selected to represent the arrival of six cars: 1,6,9,0,5,6. What is the mean time between arrivals in this run of the simu-lation model?
- A. 3 minutes.
- B. 4 minutes.
- C. 5 minutes.
- D. 2 minutes.
Answer: B
NEW QUESTION # 61
If earnings on financial statements for internal use only have been manipulated in the past, an internal auditor is likely to focus on which of the following?
- A. Whether there have been changes in accounting principles that materially affect the financial statements.
- B. The proper accrual of payables at the end of the interim period.
- C. Whether accounting estimates are reasonable given past actual results.
- D. The timing of revenue recognition and the valuation of inventories.
Answer: D
NEW QUESTION # 62
Two individuals are being considered for an audit team that is to perform a highly technical review.
Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?
I. Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.
II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.
- A. Both I and II.
- B. Neither I nor II.
- C. II only
- D. I only
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 63
According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?
- A. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
- B. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
- C. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
- D. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
Answer: C
NEW QUESTION # 64
Which of the following is a limitation of detective internal controls in fraud management?
- A. They are not effective in preventing fraud.
- B. They are not designed to improve efficiency of operations.
- C. Implementation costs tend to be higher than the expected benefits.
- D. They tend to be easy for fraudsters to circumvent.
Answer: B
NEW QUESTION # 65
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
- A. The CEO periodically should assess whether the terms of the charter continue to be adequate.
- B. Senior management should approve the charter before it is submitted to the board.
- C. The charter should define the consulting services that the internal audit activity is permitted to perform.
- D. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 66
Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?
1. Locking doors and physically securing inventory items.
2. Independently observing the receipt of materials.
3. Conducting monthly inventory counts.
4. Requiring the use of employee ID badges at all times.
- A. 2 and 3.
- B. 1 and 3.
- C. 1 and 4.
- D. 2 and 4.
Answer: C
NEW QUESTION # 67
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?
- A. Resolution is time sensitive and a quick decision is necessary.
- B. The issue is more important to one patty than the others.
- C. There is a high level of trust among the parties.
- D. Parties are confident of the solution and are ready to defend it.
Answer: C
NEW QUESTION # 68
To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:
- A. Ensure that each newly hired auditor is qualified in all of the disciplines needed to accomplish the department's audit mission.
- B. Consider the scope of work and level of responsibility when establishing criteria for education and experience in filling internal audit positions.
- C. Oversee a training program that matches the actual training provided with the interests of individual auditors.
- D. Require all of the audit staff to pursue a minimum number of continuing professional education hours each year
Answer: B
NEW QUESTION # 69
According to the Standards, which of the following is a requirement for internal audit professional development plans?
- A. Plans must include a path to certification so that each internal auditor has a certification in auditing finances.
- B. Plans must ensure that staff development activities are based primarily on the skills and competencies needed to complete the audit plan.
- C. Plans must include rotating audit areas so that auditors acquire business knowledge to be efficient in performing engagements.
- D. Plans must include rotating auditors out into business units for temporary assignments so they can obtain more business knowledge.
Answer: D
NEW QUESTION # 70
The CEO has delegated several responsibilities to the internal audit activity. Which of the following directives should concern the chief audit executive the most?
- A. Internal auditors shall perform risk management activities.
- B. Internal auditors shall perform risk-based engagements
- C. Internal auditors shall perform organization wide risk assessments
- D. Internal auditors shall perform engagement-level risk assessments
Answer: C
NEW QUESTION # 71
An organization's accounts payable function improved its internal controls significantly after
it received an unsatisfactory audit report. When planning a follow-up audit of the function, what level of detection risk should be expected if the audit and sampling procedures used are unchanged from the prior audit?
- A. Detection risk is unchanged although control risk is lower.
- B. Detection risk is higher because control risk is lower.
- C. Detection risk is lower because control risk is higher.
- D. Detection risk is lower because control risk is lower.
Answer: A
NEW QUESTION # 72
Which of the following statements is correct regarding disclosure of conformance or nonconformance with the Standards?
- A. The chief audit executive must disclose every instance of noncompliance with the Code of Ethics or the Standards.
- B. An internal audit activity that has been in existence fewer than five years cannot Indicate that it is operating in conformance with the Standards because it has not yet undergone an external assessment.
- C. If it has been more than five years since the last external assessment was conducted, the Internal audit activity must cease indicating that it operates in conformance with the Standards.
- D. Once an external assessment validates conformance with the Standards, the internal audit activity may continue to use the statement until the next external assessment.
Answer: B
NEW QUESTION # 73
Which of the following definitions best describes enterprise risk management?
- A. Enterprise risk management is narrower than internal control and focuses on managing the risk of loss resulting from external events.
- B. Enterprise riskmanagementis broader than governance and internal control,and focuses on activities designed to ensure that risks are contained at a level acceptable to the enterprise.
- C. Enterprise riskmanagementis narrower than internal control and focuses on risk mitigation strategies across the enterprise.
- D. Enterprise risk management is broader than internal control and focuses on risk identification andmanagement,and assurance that business objectives will be met.
Answer: D
NEW QUESTION # 74
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?
- A. incorrect rejection risk
- B. Incorrect acceptance risk.
- C. Anticipated misstatement risk
- D. Tolerable misstatement risk.
Answer: B
NEW QUESTION # 75
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