IIA-CIA-Part1 Practice Exam Tests Latest Updated on Oct-2021
Pass IIA-CIA-Part1 Exam in First Attempt Guaranteed Dumps!
NEW QUESTION 69
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. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- B. Recommend to the chief audit executive that a fraud investigation be started.
- C. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- D. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
Answer: A
NEW QUESTION 70
Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization's ethical climate?
I. Review formal and informal processes within the organization that could promote unethical behavior.
II. Conduct surveys of employees, suppliers, and customers regarding ethics.
III. Assess the employees' knowledge of and compliance with the organization's code of conduct.
- A. I and II only
- B. I, II, and III.
- C. I only
- D. II and III only
Answer: B
NEW QUESTION 71
Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?
- A. Performance management.
- B. Internal audit delivery.
- C. Business acumen.
- D. Governance,risk,and control.
Answer: A
NEW QUESTION 72
An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts.
Which of the following irregularities is the most likely cause of the auditor's suspicion?
- A. A much higher bad debt expense as a percentage of sales than that of other stores.
- B. A much higher bad debt expense as a percentage of sales than that of previous years.
- C. A much higher percentage of past-due accounts receivable than that of other stores.
- D. A much higher percentage of past-due accounts receivable than that of previous years.
Answer: A
NEW QUESTION 73
Which of the following is not true with regard to the internal audit charter?
- A. It should be approved by senior management and the board.
- B. It defines the authorities and responsibilities of the internal audit activity.
- C. It specifies the minimum resources needed for the internal audit activity.
- D. It provides a basis for evaluating the internal audit activity.
Answer: C
NEW QUESTION 74
Which of the following statements is true with regard to conducting an effective quality assurance and improvement program?
- A. The IIA's Quality Assessment Manual for the Internal Audit Activity must be used as the basis for periodic assessments.
- B. Periodic internal assessments provide the most current and independent recommendations for improvement.
- C. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.
- D. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.
Answer: C
NEW QUESTION 75
Which of the following is not an objective of internal control?
- A. Compliance.
- B. Validation.
- C. Accuracy.
- D. Efficiency.
Answer: B
NEW QUESTION 76
Which of the following types of fraud includes embezzlement?
- A. Bribery.
- B. Fraudulent statements.
- C. Corruption.
- D. Misappropriation of assets.
Answer: D
NEW QUESTION 77
Which of the following would be the most useful in developing an annual audit plan?
- A. Flowcharting and data capture software.
- B. Voting software and hardware.
- C. General purpose audit software.
- D. Risk assessment software.
Answer: D
NEW QUESTION 78
According to IIA guidance,which of the following is the most likely obstacle to undertaking a quality assurance and improvement program by the internal audit activity?
- A. The inability to adequately fund the program.
- B. The size of internal audit department under review.
- C. The time commitment to complete.
- D. The lack of independence and objectivity.
Answer: A
Explanation:
Topic 5, Volume E
NEW QUESTION 79
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?
- A. Detective controls.
- B. Preventive controls.
- C. Directive controls.
- D. Soft controls.
Answer: B
NEW QUESTION 80
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?
- A. Detective controls.
- B. Preventive controls.
- C. Directive controls.
- D. Soft controls.
Answer: B
NEW QUESTION 81
Which of the following is least likely to be considered material in an audit of a medium-sized organization?
- A. A $1, 000 overstatement of the accrued-vacation payable account.
- B. A violation of a government statute.
- C. An underpayment to the employee pension fund.
- D. Fraud resulting in a cash loss to the organization.
Answer: A
NEW QUESTION 82
With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?
- A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.
- B. Evaluate the organization's governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization's risk appetite.
- C. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.
- D. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.
Answer: C
NEW QUESTION 83
Which of the following should be incorporated in a risk management policy?
I.Boundaries and limit structures. II.Requirements for reporting risk. III.Risk authorities.
- A. I,II,and III.
- B. I and IIIonly
- C. I and IIonly
- D. II and IIIonly
Answer: A
NEW QUESTION 84
Which fraudulent act is designed primarily to benefit the organization?
- A. Acceptance of bribes or kickbacks.
- B. Theft or misappropriation of funds.
- C. Fictitious sale or assignment of assets.
- D. Authorization of payment for hours not worked.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 85
An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.
Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.
Which course of action should the CAE follow?
- A. Inform the external auditors of the findings and the mandate to stop investigating.
- B. Report the communication to the organization's general counsel.
- C. Inform the head of the organization that the investigation will continue as planned.
- D. Report the instruction to the chairperson of the audit committee.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 86
......
Certified Internal Free Certification Exam Material from Exams4Collection with 185 Questions: https://www.exams4collection.com/IIA-CIA-Part1-latest-braindumps.html
IIA-CIA-Part1 Dumps Full Questions - Exam Study Guide: https://drive.google.com/open?id=1lk1p1vnQe0xa-FYMGEcUxDlzOW17ILW8
