IIA-CIA-Part1 Exam Practice Test Instant Access

Question 1

Which of the following Code of Ethics principles specifically requires internal auditors to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?

AConfidentiality.

BTransparency.

CIntegrity.

DObjectivity.

Answer : D

Question 2

According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?

AThe initial review of workpapers should be conducted after the final engagement report is issued.

BIndependent internal assessments of the internal audit activity should be performed by entry-level staff as part of on-the-job training.

CInternal audit staff should be informed regularly of changes to policies and procedures.

DTraining documents should be destroyed at the end of the year to create space for the next year's training documents.

Answer : C

Question 3

The chief audit executive (CAE) is drafting the annual internal audit plan and seeks input from senior management and the external auditor prior to submitting it for approval to the board. According to MA guidance, which of the following statements is true regarding this scenario?

AThe CAE's actions are likely to impair the Independence of the internal audit activity.

BThe CAE acted appropriately, and the independence of the internal audit activity was not impaired.

CThe CAE should have developed the audit plan without outside influence to maintain objectivity.

DThe CAE acted appropriately, as he has authority to determine who reviews and approves the audit plan.

Answer : B

Question 4

A chief audit executive (CAE) recruited a few new internal auditors to reduce the resource gaps identified in this year's internal audit plan. One of the new recruits has several years of experience with the organization. Ten months ago. she served as a senior supervisor in the finance department. However, for the past 10 months, she has been helping the organization with implementing a new IT system. What approach should the CAE take for the upcoming financial statement controls audit?

AAssign the new auditor to assist with conducting the fieldwork. but ensure that her work is reviewed by the CAE.

BAssign the new auditor to assist with developing the audit program, but ensure that the audit program is executed by other audit staff.

CEnsure that the new auditor's previous manager, and other close former coworkers, are excused during the audit.

DEnsure that the new auditor is responsible only for the supervisory review, but not the execution of the audit field work.

Answer : C

Question 5

Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization's internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to degenerate. as previous audit reports also showed a large number of issues. What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

ATake an accommodating approach and change the overall rating of the audit report.

BTake a compromising approach by modifying the tone of the report, while maintaining the critical findings.

CTake an assertive approach and be persistent in attempting to convince the director.

DTake an assisting approach and offer to assist with the implementation of action plans.

Answer : C

Question 6

An external assessment was performed as part of the organization's quality assurance and improvement program. Which of the following conclusions confirms that the internal audit activity is in conformance with the Standards'?

AThe chief audit executive is well qualified and has responsibilities over operational areas that the internal audit activity assesses.

BPeriodic self-assessments are assigned to entry-level internal audit staff to support their continuing professional development.

CAll audit workpapers are reviewed and signed by the engagement supervisor before the audit report is issued.

DEmployees who rotate into the internal audit activity from other areas of the organization are assigned to audit areas where they previously worked, to take advantage of their operational expertise and experience.

Answer : C

Question 7

Which should the internal auditor first consider when assessing fraud risks during an engagement?

ACompare the organizations fraud strategies with the industry's strategies.

BReview any related prior fraud investigations.

CInvestigate any related fraud allegations.

DCommunicate any suspicious fraud activities to management.

Answer : B

IIA-CIA-Part1 Certified Internal Auditor? Exam Practice Test