IIA IIA-CIA-Part1 Dumps - Essentials of Internal Auditing PDF Sample Questions

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Exam Code:
IIA-CIA-Part1
Exam Name:
Essentials of Internal Auditing
227 Questions
Last Update Date : 24 February, 2024
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Realexamdumps Providing most updated Certified Internal Auditor Question Answers. Here are a few exams:


Sample Questions

Realexamdumps Providing most updated Certified Internal Auditor Question Answers. Here are a few sample questions:

IIA IIA-CIA-Part1 Sample Question 1

According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?


Options:

A. Discussions with the chief audit executive.
B. A listing of employee profiles and certifications.
C. Inquiry of external auditors.
D. Validation by human resources.

Answer: C

IIA IIA-CIA-Part1 Sample Question 2

An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping* She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?


Options:

A. Batch controls.
B. Application controls.
C. General IT controls.
D. Logical access controls

Answer: C

IIA IIA-CIA-Part1 Sample Question 3

Which of the following statements is true regarding the disclosure of results of the quality assurance and improvement program?


Options:

A. If the results of both internal and external assessments support conformance with the Standards, the internal audit activity must communicate this to the board and senior management in writing.
B. If it has been in existence fewer than five years and has no documented external assessment, the internal audit activity may not indicate that it is operating in conformance with the Standards.
C. If nonconformance affects its ability to fulfill its professional responsibilities or stakeholder expectations, the internal audit activity should disclose nonconformance as well as its impact.
D. If an external assessment reflects an overall conclusion of nonconformance, the internal audit activity may continue to communicate that it conforms with theStandards if it discloses a remediation plan, including timeline with subsequent validation.

Answer: D

IIA IIA-CIA-Part1 Sample Question 4

Which of the following best describes the risk contained in an initial public offering for a new stock?


Options:

A. Residual risk.
B. Net risk.
C. Inherent risk.
D. Underlying risk.

Answer: D

IIA IIA-CIA-Part1 Sample Question 5

Which of the following is an example of a detective control?


Options:

A. Automatic shut-off valve.
B. Auto-correct software functionality.
C. Confirmation with suppliers and vendors.
D. Safety instructions.

Answer: D

IIA IIA-CIA-Part1 Sample Question 6

According to NA guidance, which of the following is true regarding typical fraud schemes?

1. A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects

the organization.

2. Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.

3. Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s

records.

4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.


Options:

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

Answer: E

IIA IIA-CIA-Part1 Sample Question 7

Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?


Options:

A. Regulatory approval from an accrediting agency.
B. Self-assessments against a competency framework.
C. Approval and signoff from the board of directors.
D. A review by external auditors on an annual basis

Answer: D

IIA IIA-CIA-Part1 Sample Question 8

Which of the following is a detective control strategy against fraud?


Options:

A. Requiring employees to attend ethics training.
B. Performing background checks on employees.
C. Implementing a control self-assessment.
D. Performing a surprise audit

Answer: E

IIA IIA-CIA-Part1 Sample Question 9

According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization’s social responsibility program is effective?


Options:

A. Senior management
B. Internal audit activity.
C. All employees.
D. Board of directors.

Answer: C

IIA IIA-CIA-Part1 Sample Question 10

Which of the following is an example of a directive control?


Options:

A. Segregation of duties.
B. Exception reports.
C. Training programs.
D. Supervisory review.

Answer: D

IIA IIA-CIA-Part1 Sample Question 11

An organization opened its warehouse to sell written-off surplus and outdated office furniture to the general public. Prices were negotiable, and customers could pay by cash, check, or credit card. Receipts were available upon request, and were issued by the inventory manager upon collection of payment. At the end of the day, the manager forwarded all of the funds he had collected to the finance department for deposit. Which of the following types of fraud is most likely to occur under these circumstances?


Options:

A. Asset misappropriation.
B. Bribery.
C. Falsifying records.
D. Skimming

Answer: C

IIA IIA-CIA-Part1 Sample Question 12

During a payroll audit, the internal auditor discovered that several individuals who have the same position classification as he are earning a significantly higher salary. The auditor noted the names and amounts of each, and he planned to prepare a request to the chief audit executive for a salary increase based on this information. Which of the following IIA Code of Ethics principles was violated in this scenario?


Options:

A. Competency.
B. Objectivity,
C. Integrity.
D. Confidentiality

Answer: E

IIA IIA-CIA-Part1 Sample Question 13

The chief audit executive of an organization assigns audit resources to undertake a consulting engagement requested by senior management the previous year, and a scheduled assurance audit of the procurement process Which of the following appropriately differentiates the two engagements?


Options:

A. The details of assurance services are expected to be included in the risk-based audit plan; this is not the case for consulting services.
B. The objectivity of assurance services is impaired when undertaken by internal auditors who have had recent prior responsibility in the area under review; this is not the case for consulting services
C. The performance of assurance services may be outsourced for competency gaps: this is not the case for consulting services.
D. The results of assurance services are required to be monitored; this is not the case for consulting services

Answer: C

IIA IIA-CIA-Part1 Sample Question 14

Recently an organization’s internal audit activity discovered ghost employees who receive payments Senior management decides to strengthen the internal control measures to address this Which of the following is considered an effective control to mitigate payments to ghost employees?


Options:

A. Staff transfers are reviewed by the recruiting manager and approved by the head of human resources
B. New staff requisition forms are authorized by operational management and acknowledged by the head of human resources
C. Staff salary payments and accounting records are approved by the head of accounting and acknowledged by the head of human resources
D. The staff salary payment list is reviewed by the head of payroll and endorsed by the head of human resources

Answer: E

IIA IIA-CIA-Part1 Sample Question 15

Senior management has requested that the internal audit activity review and amend policies where necessary when auditing the purchasing department. To which of the following would the chief audit executive most likely give primary consideration when responding to this request?


Options:

A. Auditor competency.
B. Internal audit independence.
C. Auditor objectivity.
D. Engagement scope.

Answer: B

IIA IIA-CIA-Part1 Sample Question 16

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?


Options:

A. Minor theft of less than $10,000, not involving senior management.
B. Theft using collusion for more than $10,000. but not involving senior management.
C. Denial of access to requested employees during an audit.
D. Discussion of replacement of the chief audit executive.

Answer: C

IIA IIA-CIA-Part1 Sample Question 17

Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?


Options:

A. To accurately conduct performance appraisals
B. To ensure that staff complete required continuing professional education credits annually.
C. To ensure that the resources needed to complete the audit plan are available.
D. To satisfy the audit committee requirements.

Answer: D

IIA IIA-CIA-Part1 Sample Question 18

Which of the following best demonstrates the authority of the internal audit activity?


Options:

A. Suggesting alternatives to decision makers.
B. Improving the integrity of information.
C. Determining the scope of internal audit services
D. Achieving engagement objectives.

Answer: D

IIA IIA-CIA-Part1 Sample Question 19

Six months after an employee was transferred to the internal audit activity his former operating manager requested that he return to assist a project team with the evaluation of a new pricing module for the organization’s online ordering system According to IIA guidance which of the following statements is true?


Options:

A. The auditor cannot be assigned to this project, as it has been fewer than 12 months since he was transferred from that department.
B. Another internal auditor should be appointed to the engagement to preserve the independence of the internal audit activity
C. The auditor cannot participate in the assignment, as providing an opinion would impair his objectivity
D. The auditor may participate on the project, as the nature of the assignment is consulting

Answer: E

IIA IIA-CIA-Part1 Sample Question 20

Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?


Options:

A. The internal audit activity must have auditors on staff who collectively possess all of the competencies required to fulfill the internal audit plan,
B. All internal auditors on staff should possess the knowledge, skills, and competencies needed to perform any assurance engagement on the audit plan.
C. The internal audit activity must possess or obtain the competencies needed to carry out their professional responsibilities, including providing relevant advice and recommendations.
D. Internal auditors collectively are responsible for ensuring that the internal audit activity has the competencies required to fulfill the internal audit plan.

Answer: D

IIA IIA-CIA-Part1 Sample Question 21

Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?


Options:

A. Reviewing journal entries for accuracy and completeness.
B. Comparing the policies and procedures to regulatory collections guidance.
C. Advising management on streamlining the recording of accounts receivable.
D. Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists

Answer: D

IIA IIA-CIA-Part1 Sample Question 22

Which of the following best demonstrates conformance with IIA standards related to continuing professional development?


Options:

A. Retaining evidence of training in the form of continuing education credits
B. Seeking guidance regarding internal audit best practices from The IIA
C. Retaining supervisory reviews conducted on the basis of the development plan
D. Giving consideration to certain areas of specialization as part of development planning

Answer: B

IIA IIA-CIA-Part1 Sample Question 23

According to IIA guidance, which of the following best demonstrates how the chief audit executive may ensure that due professional care is applied?


Options:

A. Establish policies and procedures concerning the engagement process
B. Develop a strategy for recruiting assigning, and training staff
C. Outsource complex engagements to an external service provider
D. Base the auditor evaluation process on the number of observations

Answer: C

IIA IIA-CIA-Part1 Sample Question 24

Which of the following statements relating to risk management is true?


Options:

A. The high-level risk assessment performed during engagement planning is a detailed step-by-step analytical process
B. External auditors must be engaged to evaluate the potential for fraud and how the organization manages fraud risk
C. A lack of controls is acceptable if the risk is reduced to an acceptable level in some other way
D. Internal auditors are responsible for managing the risks of the organization

Answer: C

IIA IIA-CIA-Part1 Sample Question 25

The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?


Options:

A. The internal audit charter does not identify which audit services are outsourced
B. The internal audit charter has not been reviewed by the legal department
C. The internal audit charter has not been approved by the board within the past year
D. The internal audit charter does not describe the authority of the internal audit activity

Answer: E

IIA IIA-CIA-Part1 Sample Question 26

When a plant manager from within the organization is hired as a rotational internal auditor within the internal audit activity which area should he most likely be trained for immediately?


Options:

A. Industry knowledge
B. Project management
C. Leadership skills
D. Risk assessments

Answer: E

IIA IIA-CIA-Part1 Sample Question 27

Which of the following actions should an organization take to detect an emerging risk of potential fraud?


Options:

A. Adopt reward and recognition programs that promote good behaviors
B. Undertake background checks for new employees as part of the hiring process
C. Establish an anonymous platform for reporting suspected unethical behaviors
D. Institute periodic educational training on expected ethical behaviors

Answer: D

IIA IIA-CIA-Part1 Sample Question 28

Which of the following statements is true regarding corporate social responsibility (CSR)?


Options:

A. Many of the areas explored by CSR are normally included in an audit universe or annual audit plan,
B. Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.
C. Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.
D. Typically, operating management does not have a major role to play based on the public nature of reporting

Answer: B


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