IIA-CIA-Part1 sample questions

Question 1

Which of the following factors related to a n organization's performance management system would not contribute to the organization's success?

Accepted Answer

staff members own the performance management process,thereby ensuring implementation and accountability.

Answer

Performance management is linked to competence and knowledge management.

Answer

Subordinates and superiors have shared responsibility for the performance management process.

Answer

Performance management is integrated into other organizational processes and human resource processes.

Question 2

In a well-developed management environment, the internal audit activity would.

Accepted Answer

Report the results of audit engagements to line management as well as to senior management.

Answer

Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.

Answer

Interface primarily with senior management,minimizing interactions with line managers whA. re the subjects of internal audit work.

Answer

Focus on the maintenance of accounting controls (such as segregation of the duties of authorization,recording,and custody) and report results to the audit committee.

Question 3

According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

Accepted Answer

The chief audit executive.

Answer

The board.

Answer

Senior management.

Answer

The external auditors.

Question 4

Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

Accepted Answer

Results from discussions of audit needs with executive management and the audit committee.

Answer

A review of audit staff education and training records.

Answer

Information about the audit staff size and composition of comparable organizations.

Answer

The results of the audit staffs most recent performance reviews.

Question 5

Which of the following best describes the assessment of risks?

Accepted Answer

Assess the likelihood and/or impact of risk on the achievement of organizational objectives.

Answer

Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.

Answer

Assess the amount of risk an organization can accept while pursuing its objectives.

Answer

Assess alternative strategies to reduce or eliminate major risks.

Question 6

Which of the following statements describes a control failure that is not directly attributable to a customer billing application? 1. End users have raised a number of concerns regarding data integrity. 2. An untested program change is transferred from the test environment to production. 3. Purchase history does not reconcile with accounts receivable for some customers. 4. End user security is inadvertently granted to a n unauthorized individual by management.

Accepted Answer

2 and 4.

Answer

1 and 3.

Answer

1 and 4.

Answer

2 and 3.

Question 7

Which of the following would be the most effective action for an internal audit activity to take in order to a ssist 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.

Accepted Answer

I, II,and III.

Answer

I only

Answer

I and lI only

Answer

II and llI only

Question 8

Which type of documentary evidence gathered by an organization's internal auditors has the highest level of reliability?

Accepted Answer

Inventory test counts.

Answer

Bank statements.

Answer

Remittance advices.

Answer

Written policy statements.

Question 9

The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performed.

• Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with the company's inventory records.
• A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading and company records. No errors were detected.
• The audit staff observed engineering personnel during the handling of hazardous materials. No company policy violations were noted.

The reconciliation of waste drums to the inventory records provides evidence that:

Accepted Answer

All hazardous-waste drums in inventory were accounted for.

Answer

Hazardous-waste materials were being disposed of as prescribed by company policy.

Answer

The amount of hazardous materials being used was accurately recorded.

Answer

Records of drums shipped to the waste disposal site were being maintained.

Question 10

Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation.

What should the internal audit activity do?

Accepted Answer

Perform the engagement and make appropriate recommendations for policies and procedures.

Answer

Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.

Answer

Turn down the engagement because recommending controls would impair future objectivity regarding this client.

Answer

Turn down the engagement because an operational audit should not review policies and procedures.

IIA-CIA-Part1 Sample Questions & Answers

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IIA-CIA-Part1 Sample Questions & Answers

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