IIA IIA-CIA-Part1 Practice Test – Member Shared Questions, Page 12

Question 111

The board of directors of a global organization has found an increased number of reported cases of unethical practices since last year. To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, which of the following actions should be undertaken?

A.

Request the internal audit activity to perform an ethics-related assurance engagement.

B.

Offer in-house ethics-related training seminars for employees to attend.

C.

Reaffirm the importance of the organization's code of ethics to all employees.

D.

Conduct an organizationwide employee survey on ethical practices

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Question 112

After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?

A.

The engagement supervisor violated The IIA's Code of Ethics principle of integrity.

B.

The engagement supervisor violated The IIA's Code of Ethics principle of objectivity.

C.

The engagement supervisor violated The IIA's Code of Ethics principle of confidentiality.

D.

The engagement supervisor did not violate any principles of The IIA's Code of Ethics.

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Question 113

Which of the following is most likely to impair the organizational independence of the internal audit activity?

A.

The chief audit executive (CAE) reports administratively to the chief financial officer.

B.

The CAE oversees the effectiveness of the organization's risk management function.

C.

The CAE reports functionally to the CEO.

D.

The CAE managed the finance department for the past five years.

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Question 114

According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

A.

Developing policies and procedures for the internal audit activity.

B.

Ensuring the internal audit activity is not found fallible during audit engagements.

C.

Undertaking all engagements that management requests of the internal audit activity.

D.

Ensuring the internal audit activity reports functionally to the board of directors.

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Question 115

An accounts payable clerk has recently transferred into the internal audit activity and has been assigned to an engagement related to accounts payable processes for which he was previously responsible. Which of the following is the best action for the new internal auditor to take?

A.

If it is an assurance engagement, accept the assignment because direct knowledge of the existing accounts payable processes wifi provide depth and add more value.,

B.

If it is a consulting engagement, decline the assignment and ask to be reassigned, because in a consulting engagement the auditor must not assess operations for areas in which they were previously responsible.

C.

If it is a consulting engagement, accept the assignment because direct knowledge of the existing accounts payable processes will provide depth and add more value.

D.

If it is an assurance engagement, accept the assignment because the chief audit executive had knowledge of the internal auditor's previous role when this engagement was assigned.

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Question 116

Which of the following statements is true regarding management's use of judgement to design, implement, and conduct internal control?

A.

The use of judgment enhances management's ability to make better decisions about internal control, but cannot guarantee perfect outcomes.

B.

Introducing judgment generally diminishes management's ability to make good decisions about internal control.

C.

It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.

D.

It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together

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Question 117

According to ISO 31000, which of the following statements is correct?

A.

The board is responsible for setting the organizational attitude through tone at the top,

B.

The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities,

C.

The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.

D.

The framework is designed to be effective for organizations no matter how small.

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Question 118

In the COSO internal control framework, which of the following components serves as the foundation for the other components?

A.

Control activities.

B.

Control environment.

C.

Risk assessment.

D.

Monitoring

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Question 119

An internal auditor is providing consulting services on an area he was responsible for three years ago.

Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop. What is the best course of action for the auditor to take concerning the consulting service?

A.

Accept the consulting services only after receiving approval to do so from the board.

B.

Accept the consulting services. The objectivity won't be impaired if it has been more than a year since he last worked in the area under review.

C.

Refrain from providing the consulting service because he was responsible for that area and his objectivity will be impaired,

D.

Disclose the potential impairment to the customer before accepting the consulting engagement

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Question 120

Which of the following preventative controls would be most effective for organizations facing business disruptions and respective financial losses?

A.

Develop a business continuity plan for contingent situations,

B.

Insure the organization against financial losses.

C.

Rely on third-party cloud solution providers for the organization's systems.

D.

Hedge company assets via purchasing derivatives.

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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 12

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Related questions

Question 111

Question 112

Question 113

Question 114

Question 115

Question 116

Question 117

Question 118

Question 119

Question 120

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BASIC - 1 Month

PLUS - 2 Months

PRO - 6 Months