Top Tips Of Updated IIA-CIA-Part1 Braindump

NEW QUESTION 1
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 2
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 3
Which of the following is the most common way that occupational fraud is detected?

• A. Internal audits.
• B. Whistleblower hotline.
• C. Key controls.
• D. External audits.

Answer: B

NEW QUESTION 4
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

• A. An independent third party has assessed the organization's system of internal controls to be adequate and effective.
• B. The chief audit executive reports both functionally and administratively to the CEO.
• C. The internal audit charter is drafted properly and approved by the appropriate parties.
• D. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

Answer: B

NEW QUESTION 5
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 6
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 7
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 8
Non-statistical sampling does not require which of the following?

• A. The sample to be representative of the population.
• B. The sample to be selected haphazardly.
• C. A smaller sample size than if selected using statistical sampling.
• D. Projecting the results to the population.

Answer: C

NEW QUESTION 9
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

• A. Management will be able to reduce inherent risk because they will have a better understanding of risk.
• B. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
• C. Stakeholders will have more assurance that the risks are assessed consistently.
• D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

Answer: C

NEW QUESTION 10
Which two of the following are preventive controls in a check disbursement process?
* 1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.
* 2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.
* 3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.
* 4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

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

Answer: D

NEW QUESTION 11
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization's investments. Which of the following is the most appropriate course of action regarding the auditor's use of this functionality?

• A. The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.
• B. The auditor should perform a manual recalculation of several results to validate and document the results.
• C. The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.
• D. The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.

Answer: B

NEW QUESTION 12
According to the COSO enterprise risk management framework, which of the following best describes the activity that helps ensure risk responses are carried out effectively?

• A. Objective setting.
• B. Control activities.
• C. Information and communication.
• D. Event identification.

Answer: B

NEW QUESTION 13
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 14
Who is responsible for setting the risk appetite?

• A. External auditors.
• B. Chief risk officer.
• C. Operations management.
• D. Board of directors.

Answer: D

NEW QUESTION 15
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. 1 and 3.
• B. 1 and 4.
• C. 2 and 3.
• D. 2 and 4.

Answer: B

NEW QUESTION 16
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