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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 16

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List of questions

Question 151

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Which of the following actions is the internal audit activity best positioned within the organization to perform?

Question 152

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An internal auditor extended the scope of testing for a disbursements engagement following a fraud risk assessment Despite the investment of additional audit resources no significant issues were fou

Question 153

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The largest risks facing an organization should be mitigated by which type of controls?

Question 154

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Which of the following statements is true regarding occupational fraud?

Question 155

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Which of the following statements relating to risk management is true?

Question 156

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When dealing with various stakeholders which of the following is true regarding an internal auditor's responsibility to remain objective and independent?

Question 157

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Which of the following strategies for professional development best demonstrates an internal auditor's competency'?

Question 158

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With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?

Question 159

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

Question 160

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Which of the following statements is true regarding the independent peer review process undertaken to fulfill the requirement for an external quality assessment?

Question 151

Which of the following actions is the internal audit activity best positioned within the organization to perform?

Determine organizational risk tolerances

Monitor the organization's risk mitigations

Determine the likelihood and impact of risks

Advise the board on risk management issues

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An internal auditor extended the scope of testing for a disbursements engagement following a fraud risk assessment Despite the investment of additional audit resources no significant issues were found Unfortunately a major payment fraud was discovered several months later According to IIA guidance which of the following statements is true regarding the internal auditor's application of due professional care?

Due professional care was not applied because no additional work should have been performed unless there was actual evidence of fraud

Due professional care was not applied because the extended scope resulted in no issues being identified, while fraud actually existed

Due professional care was applied as the internal auditor modified the scope based on reasonable judgment, despite the additional cost of resources

Due professional care was applied as the cost of audit resources should not be a determining factor in the degree of testing undertaken

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Question 153

The largest risks facing an organization should be mitigated by which type of controls?

Entity-level

Activity-level

Transaction-level

Process-level

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Question 154

Which of the following statements is true regarding occupational fraud?

An employee who diverts the organization's purchases for personal use is demonstrating asset misappropriation

An employee who intentionally omits negative information in the financial statement disclosures is demonstrating an example of corruption

An employee who made an error in estimating losses may have committed fraud even if the error was not intentional

An employee who creates a denial of service in the organization's computer systems is committing asset misappropriation

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Question 155

Which of the following statements relating to risk management is true?

The high-level risk assessment performed during engagement planning is a detailed step-by-step analytical process

External auditors must be engaged to evaluate the potential for fraud and how the organization manages fraud risk

A lack of controls is acceptable if the risk is reduced to an acceptable level in some other way

Internal auditors are responsible for managing the risks of the organization

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Question 156

When dealing with various stakeholders which of the following is true regarding an internal auditor's responsibility to remain objective and independent?

When deciding between conflicting reports of a control's performance from a control operator and the operator's manager the internal auditor should generally believe the manager

Some audit issues may remain unremediated and unreported if management will accept recommendations that the internal auditor deems more important

The internal auditor may initially disagree with management s acceptance of a risk, but reevaluate and agree with management's judgment after further discussion

When working on business unit audits it is sometimes sufficient for the internal auditor to report deficiencies only to the unit manager when remediation is not complex

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Question 157

Which of the following strategies for professional development best demonstrates an internal auditor's competency'?

Completed education credits

Membership in professional organizations

Subscriptions to sources of relevant professional information

Professional development and training plans

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Question 158

With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?

Assess compliance with the organization's code of conduct

Oversee the governance and risk management processes

Initiate new organizational control processes

Provide advice on organizational governance activities

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Question 159

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

An internal auditor delays reporting material financial statement audit findings until after his parents sell all of their stock in the company

Following the restructuring of the organization, the internal audit activity now reports functionally to the chief financial officer

A new member of the internal audit activity, who was the accounts payable supervisor for two years, is asked to consult on the implementation of a new accounts payable system

Believing there must be errors in a given balance sheet account the internal auditor decides to expand his testing

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Question 160

Which of the following statements is true regarding the independent peer review process undertaken to fulfill the requirement for an external quality assessment?

Two individuals in the same internal audit activity may perform an independent peer review as long as they do not report to the same audit manager

Individuals from a separate but related organization such as an affiliate may perform peer reviews

Individuals working in separate internal audit activities may be considered independent as long as do not report to the same chief audit executive

Peer reviews are generally less cost-effective than hiring an external quality assessor

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Total 758 questions