The Secret Of IIA IIA-CIA-Part1 Free Draindumps

NEW QUESTION 1
Which of the following scenarios best illustrates the principle of due professional care?

• A. An internal auditor evaluates the significant risks arising from a consulting engagement.
• B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.
• C. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.
• D. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

Answer: A

NEW QUESTION 2
Which of the following would not be considered part of preliminary survey of an engagement area?

• A. Interviews with individuals affected by the entity.
• B. Functional walk through test.
• C. Analytical reviews.
• D. Sampling scope.

Answer: D

NEW QUESTION 3
Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

• A. Internal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.
• B. Internal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.
• C. Internal auditor integrity enables the internal audit activity to be able to demonstrate independence.
• D. Internal auditor integrity enables users of internal auditors' work to make important business decisions.

Answer: D

NEW QUESTION 4
According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

• A. An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
• B. An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.
• C. An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.
• D. An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.

Answer: C

NEW QUESTION 5
An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

• A. Competent, corroborative evidence of future working capital requirements.
• B. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
• C. Competent, documentary evidence of future cash flow changes within the organization.
• D. Sufficient, circumstantial evidence of the future solvency of the organization.

Answer: C

NEW QUESTION 6
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 7
Which of the following is an example of a management control technique?

• A. A budget.
• B. A risk assessment.
• C. The board of directors.
• D. The control environment.

Answer: A

NEW QUESTION 8
According to IIA guidance, which of the following should be included in the internal audit charter?

• A. The minimum resources and competencies needed for the internal audit activity.
• B. Identification of the organizational units where engagements are to be performed.
• C. Organizational relationships and reporting lines.
• D. Assigned responsibilities for designing and implementing controls.

Answer: C

NEW QUESTION 9
A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

• A. From sharing to reduction.
• B. From acceptance to reduction.
• C. From sharing to avoidance.
• D. From acceptance to avoidance.

Answer: A

NEW QUESTION 10
According to COSO, which of the following is not considered one of the components of an organization's internal environment?

• A. Authority and responsibility to resolve issues.
• B. Framework to plan, execute and monitor activities.
• C. Integrated responses to multiple risks.
• D. Knowledge and skills needed to perform activities.

Answer: C

NEW QUESTION 11
According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

• A. Negotiation and conflict resolution.
• B. Project management.
• C. Financial accounting.
• D. Ethics and fraud.

Answer: B

NEW QUESTION 12
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 13
What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

• A. To help the internal audit activity complete its annual assurance plan.
• B. To identify inefficiencies within the internal audit team.
• C. To help improve the overall quality of the internal audit activity's work.
• D. To identify key risks and areas of concern within the organization.

Answer: C

NEW QUESTION 14
An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?

• A. Having an occupational health officer on the engagement team.
• B. Determining that the claims have been classified properly.
• C. Placing reliance on medical reports from the injured worker's doctor.
• D. Reviewing claims to ensure all accidents actually occurred in the workplace.

Answer: A

NEW QUESTION 15
Which of the following factors have the greatest influence on the independence of the internal audit activity?

• A. Quality assessments and cultural biases of the internal audit activity.
• B. Rotational assignments and familiarity of the internal audit activity.
• C. Employee incentives and self review of the internal audit activity.
• D. Organizational positioning and scope control of the internal audit activity.

Answer: D

NEW QUESTION 16
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