IIA-CIA-Part1 Exam Questions Instant Access

Question 1

An internal auditor has completed an assurance engagement Which of the following is most likely true regarding the engagement?

ADuring audit planning, the auditor provided the client with the scope of the engagement for their agreement

BThe results of the engagement were included in a written report that was issued to the client who requested the engagement

CDuring audit planning, the auditor determined that the engagement scope would include a review of the security and privacy of payroll records

DThe client requested the review of a new payroll system in order to improve the security of the system

Answer : B

Question 2

The chief audit executive of a large national retailer is reviewing the purpose and objectives of the organization's internal audit activity

Which of the following objectives is best aligned with The IIA's Mission of Internal Audit?

ATo implement a quality assurance and improvement program

BTo assess the effectiveness of internal controls over organizational assets

CTo ensure internal auditors possess the competencies needed to perform their responsibilities

DTo operate within the budget established by the board of directors

Answer : B

Question 3

Which of the following is a responsibility of the internal audit activity as it relates to risk and risk management?

AEvaluating and suggesting improvements to the risk management process.

BEstablishing the organization's risk appetite.

CDetermining whether the risk attitude is aligned with shareholder interests.

DEnsuring an adequate risk management system is in place.

Answer : A

Question 4

The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigator. Which of the following would most likely be the next step?

AAsk internal auditors to gather all relevant information and evidence.

BIdentify and interview witnesses first and potential suspects later.

CConduct a fraud risk assessment to identify the most vulnerable areas.

DDetermine the competencies needed and assess whether team members have a conflict of Interest.

Answer : D

Question 5

An investment advisory firm purchased professional liability insurance to offer protection from lawsuits brought by customers claiming they received poor or erroneous advice. Which of the following best describes this risk management technique?

AMitigation.

BAcceptance

CTransfer.

DAvoidance

Answer : C

Question 6

Which of the following activities aligns with The IIA's Core Principles for the Professional Practice of Internal Auditing?

AThe chief audit executive reports to senior management for compensation decisions and communications of audit results to the board

BFinal reports from consulting engagements show the summary of findings, and the internal auditor's advice is clearly distinct and separate from management's decisions

CInternal auditors rotate through operations and management positions then perform audit engagements on these areas to ensure timely application of their knowledge

DDue to limited resources, internal auditors prioritize assurance on internal controls and risk management and exclude evaluating governance processes, which are deemed outside of their core responsibilities

Answer : B

Question 7

Which of the following is true regarding the stakeholder theory of corporate social responsibility?

AAn organization has a fiduciary duty to put shareholders' needs first

BCustomers' needs are the primary responsibility of the organization

CCompetitors are considered stakeholders of the organization

DEmployees are the organization's best assets and primary responsibility
Topic 6, Exam Pool F

Answer : D

IIA Certified Internal Auditor IIA-CIA-Part1 Exam Questions