IIA-CIA-Part1 Exam Practice Test Instant Access

Question 1

A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

AInternal auditors1performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits.

BStandard training for each employee, including internal auditors, is 10 hours per year.

CTo enhance efficiency, internal auditors should not be rotated regularly among engagements.

DHiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Answer : D

Question 2

The head of human resources notified the internal audit activity that a key account manager was fired because he did not register a large number of contracts with clients As a result the organization was unaware of its duties and would suffer some financial loss Which of the following should be expected from a competent internal auditor who is analyzing this situation?

AThe ability to apply forensic methods to obtain legally admissible evidence

BThe ability to conduct admission-seeking interviews with potential suspects

CThe ability to evaluate whether such attributes as intent and personal gain were present

DThe ability to retrieve concealed or deleted information from the former employee's laptop

Answer : C

Question 3

Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?

AThe monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system

BThe volume of nonroutine journal entries has steadily increased over time.

CThe database of approved suppliers has not been reviewed the last year

DThe recent employee survey indicates that some employees remain unaware of the organization's whistieblower hotline.

Answer : A

Question 4

According to IIA guidance, which of the following is most critical to ensuring that an organization's risk management program remains effective over time?

AEnsuring a fully executed assurance role for the internal audit activity.

BConducting risk evaluations that include ranking the relative importance of each risk.

CEstablishing a risk management function and appointing a chief risk officer.

DConducting a combination of ongoing risk reviews and individual evaluations.

Answer : D

Question 5

Which combination of strategies would provide the best evaluation of the effectiveness of the organization's risk assessment activity?

1. Interview staff at various levels to discuss the organization's objectives, significant risks, and risk appetite.

2. Review board meeting minutes to determine whether the significant risks identified are communicated timely to the board.

3. Evaluate the adequacy and timeliness of management remediation actions by reviewing the control design, testing the controls, and reviewing monitoring procedures.

4. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.

A1 and 2 only.

B1.2, and 3 only.

C1.3. and 4 only.

D3 and 4 only.

Answer : B

Question 6

To comply with the proficiency standard which of the following would the chief audit executive likely consider as the primary hiring criterion when choosing a new internal auditor?

AThe length and consistency of the auditor's work experience

BThe auditor's demonstrated problem-solving skills

CThe auditor's skills compared to those already possessed by other audit staff

DThe auditor's ability to be self motivated and a good team player

Answer : C

Question 7

According to IIA guidance, a new internal auditor is expected to possess which of the following competencies?

ATechnical industry-specific expertise.

BExpertise in cybersecurity, an area of increasing risk.

CKnowledge of IT risks and controls.

DKnowledge of forensic accounting.

Answer : C

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