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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 13

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Question 121

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The organization's internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

Question 122

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Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

Question 123

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An automobile manufacturer will become one of the first in the industry to adopt a new inventory management software. Despite the system being new to the market, senior management believes that the

Question 124

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Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

Question 125

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Which of the following statements is true regarding corporate social responsibility (CSR)?

Question 126

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According to IIA guidance, which of the following threats to objectivity is described as familiarity'?

Question 127

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Which of the following is an example of risk monitoring to ensure a system is performing as intended?

Question 128

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Which of the following is a true statement regarding controls such as ethical values, tone at the top and operational style?

Question 129

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Which of the following represents an example of an ethical issue that the organization should address'?

Question 130

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Which of the following is an example of impairment to internal auditor independence or objectivity'?

Question 121

The organization's internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team.

Perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter

Use an internal audit charter template from another organization that operates within the same industry.

Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved.

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Question 122

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

Briefing the organization's department managers on how to implement risk management processes into their daily operations.

Communicating with senior management to better understand how new purchasing controls will minimize payment processing time.

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Question 123

An automobile manufacturer will become one of the first in the industry to adopt a new inventory management software. Despite the system being new to the market, senior management believes that the benefits are great enough to offset the potential risks. Which of the following aspects of risk management does senior management's decision best illustrate?

Residual risk.

Inherent risk.

Risk tolerance.

Risk appetite.

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Question 124

Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

Reviewing journal entries for accuracy and completeness.

Comparing the policies and procedures to regulatory collections guidance.

Advising management on streamlining the recording of accounts receivable.

Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists

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Question 125

Which of the following statements is true regarding corporate social responsibility (CSR)?

Many of the areas explored by CSR are normally included in an audit universe or annual audit plan,

Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.

Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.

Typically, operating management does not have a major role to play based on the public nature of reporting

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Question 126

According to IIA guidance, which of the following threats to objectivity is described as familiarity'?

An internal auditor is a close friend or relative of the manager or an employee of the audit client

An internal auditor has a long-term business relationship with the audit client.

An internal auditor has an economic stake in the performance of the organization

An internal auditor is exposed to or perceived to be exposed to pressures from external parties

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Question 127

Which of the following is an example of risk monitoring to ensure a system is performing as intended?

Checking the progress of risk treatment plans

Considering the consequence and likelihood of risks

Documenting the risks and their areas of impact

Communicating to management about risks

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Question 128

Which of the following is a true statement regarding controls such as ethical values, tone at the top and operational style?

Transaction testing, mapping and flowcharting is applicable while testing such controls

Breakdowns in the these types of controls have historically led to fraudulent financial reporting

Such controls can be defined as inherently ob)ective and tangible elements of control

From an audit perspective it is significantly easier to assess ethical values than segregation of duties

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Question 129

Which of the following represents an example of an ethical issue that the organization should address'?

An employee discovered that there is no personal protective equipment at a temporary construction site

An employee saw that a group of other employees were smoking in close proximity to petrol distribution tanks

A supervisor insists that an employee complete time sheets regularly

An employee received concert tickets from a vendor and asked whether she could keep them

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Question 130

Which of the following is an example of impairment to internal auditor independence or objectivity'?

Assurance engagements for functions over which the chief audit executive (CAE) has responsibility are overseen by a party outside the internal audit activity

Internal auditors provide consulting services relating to operations for which they had previous responsibilities

Internal auditors provide consulting services relating to operations for which they have current responsibilities

Consulting engagements for functions over which the CAE has responsibility are overseen by a party outside the internal audit activity

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Total 758 questions