Top Tips Of Most Up-to-date IIA-CIA-Part1 Questions

NEW QUESTION 1
Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

• A. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
• B. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
• C. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
• D. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

Answer: B

NEW QUESTION 2
In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

• A. Maintaining industry-specific knowledge appropriate to the organization.
• B. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
• C. Maintaining technical aspects of accounting standards and reporting processes.
• D. Understanding regulatory and legal framework and assessing its relevance.

Answer: D

NEW QUESTION 3
Which of the following statements is true regarding assurance services provided to clients outside of the organization?

• A. Assurance services for outside clients are not covered under the internal audit charter.
• B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
• C. The nature of assurance services for outside clients should be defined in the internal audit charter.
• D. The nature of assurance services for outside clients is the same as for internal clients.

Answer: C

NEW QUESTION 4
According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

• A. Rating each engagement record to assess its relevance and accessibility for the organization's board.
• B. Controlling access to engagement records, including access by senior management.
• C. Developing retention requirements for engagement records that are consistent with organizationalguidelines.
• D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

Answer: A

NEW QUESTION 5
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. 1 and 4 only
• B. 2 and 3 only
• C. 3 and 4 only
• D. 1, 2, and 4 only

Answer: D

NEW QUESTION 6
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

• A. Statistical sampling only
• B. Nonstatistical sampling only
• C. A combination of both statistical and nonstatistical sampling.
• D. Neither approach to testing the audit theory would be cost effective.

Answer: B

NEW QUESTION 7
According to The IIA's Code of Ethics, which of the following is true?

• A. Confidentiality requires that auditors disclose all material facts known to them.
• B. Integrity requires that auditors perform internal audit services in accordance with the Standards.
• C. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
• D. Confidentiality requires that auditors be prudent in the use and protection of client information.

Answer: D

NEW QUESTION 8
An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?

• A. Ethics should vary with local customs in the organization's foreign operations.
• B. Whistleblowing should be discouraged because it can cause distrust among employees.
• C. Ethical behavior should be incorporated into performance evaluations.
• D. Senior management should be granted specific exemptions to the code of ethics.

Answer: C

NEW QUESTION 9
According to the COSO enterprise risk management (ERM) framework, which of the following is not part of the new paradigm in ERM?

• A. Assessing the risk factors.
• B. Aligning risk appetite and strategy.
• C. Enhancing risk response decisions.
• D. Reducing operational surprises and losses.

Answer: A

NEW QUESTION 10
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
* 1. Acceptance of CAATs findings by entity management.
* 2. Computer knowledge and expertise of the auditor.
* 3. Time constraints.
* 4. Level of audit risk.

• A. 1 and 4
• B. 2 and 3 only
• C. 1, 2, and 3
• D. 2, 3, and 4

Answer: D

NEW QUESTION 11
Which of the following are core responsibilities to be included in the internal audit charter?
* 1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
* 2. Determine the adequacy and effectiveness of the organization’s systems of internal accounting and operating controls.
* 3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.
* 4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

• A. 1 and 2.
• B. 1 and 4.
• C. 2 and 3.
• D. 2 and 4.

Answer: A

NEW QUESTION 12
According to COSO, which of the following describes a principle related to the control environment?

• A. The organization identifies and assesses changes that could significantly impact the system of internal control.
• B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
• C. The organization selects and develops control activities that contribute to the mitigation of risks.
• D. The organization performs evaluations to ascertain whether internal control components are present and functioning.

Answer: B

NEW QUESTION 13
The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

• A. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.
• B. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.
• C. The assigned internal auditor must not assume management responsibilities while performing the engagement.
• D. The assigned internal auditor must maintain objectivity while performing the engagement.

Answer: A

NEW QUESTION 14
If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?

• A. Imposing risk management processes.
• B. Providing consolidated reporting on risks.
• C. Taking accountability for risk management.
• D. Making decisions on risk responses.

Answer: B

NEW QUESTION 15
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

• A. Working conditions.
• B. Employees' families.
• C. Marketplace competition.
• D. Shareholders and investors.

Answer: B

NEW QUESTION 16
According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?
* 1. The standards to be used by the internal audit activity.
* 2. The internal audit activity's code of ethics.
* 3. The CAE's reporting line.
* 4. The internal audit activity's responsibilities.

• A. 4 only.
• B. 1 and 2 only.
• C. 3 and 4.
• D. 1,2, and 3.

Answer: C

NEW QUESTION 17
Which of the following is the primary engagement responsibility of an entry-level internal auditor?

• A. Leadership.
• B. Documentation.
• C. Analysis.
• D. Reporting.

Answer: C

NEW QUESTION 18
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

• A. Control environment.
• B. Control activities.
• C. Risk assessment.
• D. Monitoring.

Answer: D

NEW QUESTION 19
A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

• A. Coordinate and facilitate risk workshops for management to attend.
• B. Establish the degree of risk appetite for management to accept.
• C. Set risk indicators and mitigation plans for management to implement.
• D. Determine the number of significant risks for management to report to the board.

Answer: D

NEW QUESTION 20
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 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.
• B. 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.
• C. 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.
• D. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.

Answer: B

NEW QUESTION 21
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