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IIA-CIA-Part1 exam is the first part of the Certified Internal Auditor (CIA) certification, which is globally recognized as a symbol of excellence in the internal auditing profession. Passing the IIA-CIA-Part1 exam is a prerequisite for taking the remaining parts of the CIA exam.
The Institute of Internal Auditors (IIA) is a global professional association that caters to the needs of internal auditors across the world. The IIA offers several certification programs to help internal auditors enhance their knowledge, skills, and credibility. One such program is the Certified Internal Auditor (CIA) certification. The CIA certification is a globally recognized professional certification for internal auditors. It is awarded to individuals who demonstrate their knowledge, skills, and competencies in the field of internal auditing. The CIA certification program comprises three parts, and the first part is the Essentials of Internal Auditing (IIA-CIA-Part1) exam.
NEW QUESTION # 76
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 performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.
- 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 assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
- D. An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.
Answer: A
NEW QUESTION # 77
An internal auditor is planning an audit of an organization where temporary employees are
suspected of receiving pay for hours they have not worked. Which of the following tasks should not be performed at this stage in the audit?
- A. Interviewing the manager who requested the audit engagement.
- B. Interviewing shift supervisors about their employees' attendance.
- C. Preparing an engagement program.
- D. Obtaining a copy of the contract between the organizations and the temporary employment agency.
Answer: B
NEW QUESTION # 78
Which of the following controls is not appropriate for sales in a manufacturing organization?
- A. Goods returned are inspected for damage by the receiving department for proper disposition.
- B. Customers' orders are recorded promptly.
- C. Goods shipped are matched with valid customer orders.
- D. Sales department approval is required for credit sales transactions.
Answer: D
NEW QUESTION # 79
A chief audit executive (CAE) is obtaining information required by a regulatory oversight body and discovers a situation that requires management to take immediate corrective action. What is the best course of action for the CAE to take?
- A. Check with legal counsel to determine whether the situation can be reported to management before all information has been submitted to the oversight body.
- B. Wait until all of the information has been gathered and reported to the oversight body before reporting the situation to management.
- C. Schedule an engagement to explore the situation in depth, before reporting to either management or the oversight body.
- D. Report the situation to management immediately.
Answer: D
NEW QUESTION # 80
Which of the following processes should be included in a benchmarking activity?
I. Identify key measures.
II. Collect data on performances and practices.
III. Identify opportunities for improvement.
- A. I, II, and III.
- B. II and III only
- C. II only
- D. I and III only
Answer: A
NEW QUESTION # 81
Which of the following actions would be a violation of the IIA Code of Ethics?
- A. Declining an audit engagement for which the auditor does not have the necessary experience or training.
- B. Failing to return a free promotional pen to a vendor related to the audit activity.
- C. Excluding an issue in the final audit report after management has resolved the issue.
- D. Reporting information that could be damaging to the organization, at the request of a court of law.
Answer: C
Explanation:
Section: Volume D
Explanation
NEW QUESTION # 82
Which of the following is the first step in the process of identifying relevant fraud risk factors?
- A. Engaging in strategic reasoning to anticipate the fraud scheme
- B. Gathering information about the organization's business activities to gain an understanding of fraud risks
- C. Identifying preventive and detective controls
- D. The use of brainstorming, management interviews, analytical procedures and review of prior frauds.
Answer: B
NEW QUESTION # 83
An internal audit activity's work schedule should always provide sufficient information to the audit committee to enable it to determine whether the proposed engagements:
- A. Support the organization's objectives.
- B. Include sufficient fraud awareness.
- C. Are likely to detect control deficiencies.
- D. Will likely result in the detection of any major risk exposures.
Answer: A
NEW QUESTION # 84
A quantitative risk assessment model has all of the following advantages except:
- A. Providing a systematic method of applying weightings to risks and priorities.
- B. Removing the need for judgment on the part of the chief audit executive.
- C. Accommodating a large number of risk factors in the assessment.
- D. Providing documentation for the chief audit executive, who must defend the long-range audit plan.
Answer: B
NEW QUESTION # 85
To identify those components of a telecommunications system that present the greatest risk, an internal auditor should first:
- A. Determine the business purpose of the network.
- B. Identify the network operating costs.
- C. Review the open systems interconnect network model.
- D. Map the network software and hardware products into their respective layers.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 86
Which of the following relates to the concept of due professional care?
- A. The internal audit resource plan is only approved by the chief financial officer.
- B. An auditor attempts to obtain information needed to complete an assurance engagement but is denied access.
- C. The appointment of the chief audit executive is ratified by the board.
- D. An auditor demonstrates a good understanding of the steps involved in carrying out a consulting engagement.
Answer: B
NEW QUESTION # 87
According to the COSO Enterprise Risk Management - Integrated Framework, which of the following statements is true regarding the role of risk appetite in an organization?
- A. Risk appetite is determined in part by how an entity allocates its resources.
- B. A high risk appetite may limit capital investment in high risk areas.
- C. Risk appetite is often best measured in the same units as its related objective.
- D. Risk appetite reflects the organization's risk philosophy and influences its operating style.
Answer: D
NEW QUESTION # 88
An internal auditor has been engaged to assess fraud risks associated with a new financial software system.
Which competency would best help the auditor complete the task?
- A. Expertise in identifying information technology risks.
- B. A thorough understanding of organizational governance principles.
- C. Proficiency in creating and utilizing process maps.
- D. Knowledge of key management and business principles.
Answer: A
NEW QUESTION # 89
When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?
- A. A new accounts payable system is currently undergoing testing by the information technology department.
- B. The external auditors have requested assistance for their upcoming annual audit.
- C. The existing accounts payable system has not been audited over the past year.
- D. Management has requested an investigation of possible lapping in receivables.
Answer: D
NEW QUESTION # 90
An audit of the quality control department is being planned. Which of the following would least likely be used in the preparation of a preliminary survey questionnaire?
- A. The prior audit report.
- B. Management's charter for the quality control department.
- C. An analysis of quality control documents.
- D. The permanent audit file.
Answer: C
NEW QUESTION # 91
Senior management asks the chief audit executive to review the organization's compliance with recently introduced legislation on international transfer pricing. The review requires an internal auditor who thoroughly understands the legislation and pricing methods. The internal audit activity does not have an auditor with those skills. Which of the following is the most appropriate course of action?
- A. Carry out the engagement using existing internal audit staff to help them gain the appropriate experience.
- B. Recruit a lawyer with knowledge of the legislation to the audit team and ask the new auditor to perform the engagement.
- C. Decline to perform the engagement, as the internal audit activity does not have the appropriate skill set.
- D. Outsource the engagement to an external audit firm that has appropriate skills.
Answer: D
NEW QUESTION # 92
Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?
- A. Policies that provide examples of inappropriate business relationships.
- B. Policies that keep internal auditors in areas where they have vast audit expertise.
- C. Policies that match internal auditors' performance with feedback from management of the area under review.
- D. Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment,
Answer: A
NEW QUESTION # 93
Which of the following is a detective control strategy against fraud?
- A. Performing a surprise audit.
- B. Performing background checks on employees.
- C. Requiring employees to attend ethics training.
- D. Implementing a control self-assessment.
Answer: A
NEW QUESTION # 94
Guidelines need to be set for various levels of suspected fraud within an organization and when it would be reported to the audit committee. Which of the following would be reported at the next meeting?
- A. Minor theft of less than $10,000, not involving senior management.
- B. Denial of access to requested employees during an audit.
- C. Theft using collusion for more than $10,000. but not involving senior management.
- D. Discussion of replacement of the chief audit executive.
Answer: C
NEW QUESTION # 95
According to IIA guidance, which of the following is the best example of a system application control?
- A. A system development life cycle control.
- B. A program change management control.
- C. A physical security control over a data center.
- D. An input control over data integrity.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION # 96
According to IIA guidance, which of the following best describes acceptable methods for internal auditors to obtain qualified continuing professional education hours?
- A. Volunteering in relevant professional organizations, formal education, and tutoring college students.
- B. Formal education, on-line training courses, and tutoring college students.
- C. Volunteering in relevant professional organizations, on-line training courses, and tutoring college students.
- D. Volunteering in relevant professional organizations, formal education, and online training courses.
Answer: D
NEW QUESTION # 97
An internal auditor has documented several instances in which management asked employees to ad against the policies and procedures. Which of the following is the most appropriate next step?
- A. Investigate the rationale for management's actions.
- B. Report the non-compliance cases to the board of directors.
- C. Recommend that management update its policies and procedures based on the circumstances.
- D. Recommend those employees to report the cases through the designed whistleblowing channel for the appropriate treatment.
Answer: B
NEW QUESTION # 98
Which of the following represents the most effective governance structure?
I.Operating
Executive
Internal
Management
Management
Auditing
Responsibility for risk
Oversight role
Advisory role
II.
Oversight role
Responsibility for risk
Advisory role
III.
Responsibility for risk
Advisory role
Oversight role
IV.
Oversight role
Advisory role
Responsibility for risk
- A. III
- B. I Only
- C. IV
- D. II
Answer: B
NEW QUESTION # 99
Which of the following best describes the trait that an internal auditor exercises when
considering the extent of work needed to achieve the engagement's objectives?
- A. Proficiency.
- B. Due professional care.
- C. Objectivity.
- D. Independence.
Answer: B
NEW QUESTION # 100
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