Best IIA IIA-CIA-Part1 2023 Training With 230 QA's
IIA IIA-CIA-Part1 Certification Exam Questions
The IIA IIA-CIA-Part1 exam is offered by the Institute of Internal Auditors (IIA), which is the global professional association and standard-setting body for internal auditors. Passing the IIA-CIA-Part1 exam demonstrates that the candidate has a strong foundation in the essential concepts of internal auditing and is competent in applying those concepts in real-world scenarios.
NEW QUESTION # 50
Due to unfavorable economic conditions management decided to postpone new investments for the next year. Which of the following best describes the risk management strategy used to address this situation?
- A. Risk mitigation
- B. Risk transfer
- C. Risk reduction
- D. Risk avoidance
Answer: D
NEW QUESTION # 51
Which of the following statements is correct regarding risk analysis?
- A. The highest risk assessment should always be assigned to the area with the largest potential loss.
- B. The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
- C. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
- D. Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.
Answer: C
NEW QUESTION # 52
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
- A. Hire a risk consultant.
- B. Maintain a large foreign currency balance.
- C. Insist that customers only pay in a stable currency.
- D. Implement a hedging strategy.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 53
Which of the following would most likely be classified as a consulting engagement?
- A. Assessing the adequacy of the IT system's business process design
- B. Examining the internal control effectiveness of the marketing department
- C. Facilitating a self assessment of the organizations business risk and control identification
- D. Reviewing the application controls in the human resources system
Answer: C
NEW QUESTION # 54
When issuing his department's performance report, a sales director in an insurance company knowingly fails to correct the reserves for unearned income that resulted from cancellations of policy subscriptions. This could be considered which of the following types of fraud?
- A. Disbursement fraud
- B. Asset misappropriation
- C. Information misrepresentation
- D. Skimming
Answer: B
NEW QUESTION # 55
Noncompliance with which of the following would cause a control deficiency related to privacy protection practices?
I. An organization's internal privacy policies.
II. Financial accounting standards.
III. Privacy laws and regulations.
IV. The Standards.
- A. I, II, III, and IV.
- B. I and III only
- C. II, III, and IV only
- D. II and IV only
Answer: B
NEW QUESTION # 56
Which of the following is true with regard to an organization's risk management practices?
- A. Mitigated risks are no longer considered to be inherent.
- B. Risks may relate to failing to achieve positive outcomes.
- C. Risks represent a single point estimate
- D. Each organization faces the same types of risk.
Answer: C
NEW QUESTION # 57
Which of the following is least likely to be considered material in an audit of a medium-sized organization?
- A. An underpayment to the employee pension fund.
- B. Fraud resulting in a cash loss to the organization.
- C. A violation of a government statute.
- D. A $1, 000 overstatement of the accrued-vacation payable account.
Answer: D
NEW QUESTION # 58
Which of the following would be an appropriate outcome of a quality assurance and improvement program in an internal audit activity?
1. Modification of resources.
2. Corrections to procedures.
3. Changes in processes.
4. Implementation of new technology.
- A. 1, 2, and 3 only
- B. 1, 2, 3, and 4
- C. 2 and 4 only
- D. 3 and 4 only
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 59
In order to effectively handle conflict between audit team members, an audit team leader should:
- A. Transfer one of the team members to another assignment.
- B. Be assertive and keep the team members focused on a resolution.
- C. Avoid addressing the conflict until the leader is sure that there is a problem.
- D. Ask one of the team members to resolve the issue by being more conciliatory.
Answer: B
NEW QUESTION # 60
An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?
- A. The invoices have low reliability.
- B. The invoices have zero reliability.
- C. The invoices have medium reliability.
- D. The invoices have high reliability.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 61
Which of the following are components of the COSO enterprise risk management
framework?
1.Objective setting.
2.External environment.
3.Data collection.
4.Control activities.
- A. 2 and 4only
- B. 2 and 3only
- C. 1 and 4only
- D. 1 and 3only
Answer: C
NEW QUESTION # 62
During a complex financial compliance engagement, a senior internal auditor determines that current audit procedures are not sufficient for adequate testing She consults with a colleague and learns that a spreadsheet application contains a helpful tool She proceeds to use the tool to properly complete the evaluation Which of the following best describes the core competency displayed by the senior auditor?
- A. Persuasion and collaboration
- B. Critical thinking
- C. Business acumen
- D. Communication
Answer: B
NEW QUESTION # 63
Which of the following processes or tools can be used as ongoing internal assessments of the performance of the internal audit activity?
1. Analyses of audit plan completion and cost recoveries.
2. Selective peer reviews of work papers by staff involved in the respective audits.
3. Self-assessment of the internal audit activity with on-site validation by a qualified independent reviewer.
4. Feedback from audit customers and stakeholders.
- A. 1, 2, and 4 only
- B. 1 and 2 only
- C. 3 and 4 only
- D. 1 only
Answer: A
NEW QUESTION # 64
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
- A. Recommending accountability for risk management.
- B. Providing assurance that risks are evaluated correctly.
- C. Supporting managers to identify ways to mitigate risks.
- D. Evaluating risk management processes.
Answer: A
NEW QUESTION # 65
The chief audit executive (CAE) routinely provides activity reports to the board during quarterly board meetings.
Senior management has asked to review the CAE's board presentation before each board meeting so that any issues or questions can be discussed beforehand. The CAE should:
- A. Not provide activity reports to senior management because such matters are the sole province of the board.
- B. Disclose only those matters in the activity reports that pertain to expenditures and financial budgets of the internal audit activity.
- C. Provide the activity reports to senior management as requested and discuss any issues that may require action to be taken.
- D. Provide information to senior management that pertains only to completed audit engagements and observations available in published engagement final communications.
Answer: C
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 66
Management has asked the chief audit executive (CAE) to provide assurance on the organization's automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?
- A. Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.
- B. Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.
- C. Accept the assignment if the engagement is included in the current audit plan, but inform senior management that the current audit staff does not have the knowledge and skills required.
- D. Accept the assignment and use control self-assessment to complete the project.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 67
An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if:
- A. There were several instances in which successively numbered checks for amounts between $5,000 and $10,000 were made payable to the same vendor.
- B. The director of accounting was not one of the authorized signers.
- C. The $10,000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10,000.
- D. The auditor located two checks for $9,000 each that contained one authorized signature.
Answer: A
NEW QUESTION # 68
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