[Mar-2024] IIA-CIA-Part1 Dumps Full Questions – Certified Internal Exam Study Guide [Q104-Q119]

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[Mar-2024] IIA-CIA-Part1 Dumps Full Questions – Certified Internal Exam Study Guide

Exam Questions and Answers for IIA-CIA-Part1 Study Guide

IIA-CIA-Part1: Essentials of Internal Auditing exam is a certification exam offered by the Institute of Internal Auditors (IIA) for professionals seeking to establish their expertise in internal auditing. IIA-CIA-Part1 exam is designed to test the candidate’s knowledge of the fundamental principles and concepts of internal auditing.

Q104. According to IIA guidance,the results of a formal quality assessment should be reported to which of the following groups?

The audit committee and senior management.

The audit committee and the external auditors.

Senior management and management of the audited area.

Senior management and the external auditors.

Q105. Which of the following best describes the risk created when a manager bypasses organizational policies and procedures in order to meet an organization’s objective?

Accountability/reward risk.

Monitoring failure risk.

Communication failure risk.

Knowledge/skills risk

Q106. Which of the following would provide the best support for internal auditors to meet their continuing professional development requirements?

Access to online internal audit and business skills courses.

Records of self-assessment reports completed by the internal audit staff.

Cosourcing arrangements with external providers on specific engagements.

Performance reviews comparing internal auditors’ achievements against specified goals.

Q107. Which of the following is an appropriate role for the board in governance?

Preparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest.

Ensuring that financial statements are understandable, transparent, and reliable.

Assisting the internal audit activity in performing annual reviews of governance.

Working with the organization’s attorneys to develop a strategy regarding current litigation, pending litigation, or regulatory proceedings governance.

Q108. An internal auditor is conducting an assessment of the organization’s fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?
1. The organization uses an automated authority approval matrix to control payments.
2. The organization has a whistleblower hotline that is available to employees.
3. Annually, every manager completes a comprehensive fraud assessment of his or her department.
4. Annually, the organization reviews and communicates the code of expected behavior.

1 and 2.

1 and 3.

2 and 3.

2 and 4.

Q109. Which of the following is a limitation of using observation as a manual audit procedure?

Observation provides information at a certain time and makes it difficult to draw representative conclusions.

Observation is not as persuasive as inquiry due to a lack of direct evidence.

Observation is performed specifically to test the validity of documented or recorded information.

Observation may cause individuals to behave less critically or carefully if they are aware that other forms of manual audit procedures have already taken place.

Q110. Which of the following types of information would an internal auditor expect to find in the supporting documentation for a high-level accounts payable process flowchart?

A copy of the new customer request form.

An overview of the steps for validating invoices.

The number of payments paid before the due date of the invoice.

The payment terms and credit limit of the vendor to be paid.

Q111. According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I. The audit committee has requested assurance of the treasury department’s compliance with a new policy on the use of financial instruments.
II. Treasury management has not instituted any risk management policies.
III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV. The external auditors have indicated some difficulties in obtaining account confirmations.

I and II only

I and IV only

I, II, and III only

II, III, and IV only

Q112. Once the cause of a problem has been identified, the next step is to:

Select a solution.

Generate alternative solutions.

Identify the problem.

Consider the reaction of competitors to various courses of action.

Q113. A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

Continuously monitor the organization’s overall risk activities in relation to its risk appetite.

Evaluate the adequacy and effectiveness of the organization’s governance activities.

Oversee the establishment and administration of an effective risk management program.

Assist management in implementing recommended control improvements.

Q114. The manager for an organization’s accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

An operations audit of the accounts payable department.

A consulting engagement related to a new accounts payable optimization initiative.

A review of the employees’ sports club finances, which are overseen by the chief audit executive.

An assurance review for a sales program on which she previously provided consultation.

Q115. Which is the least effective form of risk management?

Systems-based preventive control.

People-based preventive control.

Systems-based detective control.

People-based detective control.

Q116. When auditing the award of a major contract,which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1.Subsequent change orders increase requirements for low-bid items.
2.Material contract requirements are different on the actual contract than on the request for bids.
3.A
high percentage of employees are charged to indirect accounts. 4.Losing bidders are hired as subcontractors.

1only

2only

1 and 3.

2 and 4.

Q117. Which of the following best demonstrates conformance with the Standards regarding the internal audit activity’s purpose authority, and responsibility?

Discussion and formal presentation of the internal audit charter to the board of directors

Certification by external auditors on the purpose, authority and responsibility of the internal audit activity

Approval of senior management that the internal audit activity is functioning as originally designed

Self-assessment of the internal audit activity completed by the chief audit executive

Q118. Which of the following statements is true regarding occupational fraud?

An employee who diverts the organization’s purchases for personal use is demonstrating asset misappropriation

An employee who intentionally omits negative information in the financial statement disclosures is demonstrating an example of corruption

An employee who made an error in estimating losses may have committed fraud even if the error was not intentional

An employee who creates a denial of service in the organization’s computer systems is committing asset misappropriation

Q119. What should the chief audit executive do when the internal audit activity is found to be in nonconformance with the Code of Ethics or the Standards?

Assign competent staff to the area under audit to remediate the nonconformance.

Determine how the deviation impacted the overall scope of the internal audit activity.

Meet with the board to gam an understanding of the board’s expectations.

Communicate the matter to the board at the time of the next external assessment.

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