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

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?

Determine organizational risk tolerances
Determine organizational risk tolerances
Monitor the organization's risk mitigations
Monitor the organization's risk mitigations
Determine the likelihood and impact of risks
Determine the likelihood and impact of risks
Advise the board on risk management issues
Advise the board on risk management issues
Suggested answer: B
asked 18/09/2024
Charles Brono
49 questions

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 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 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 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 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
Due professional care was applied as the cost of audit resources should not be a determining factor in the degree of testing undertaken
Suggested answer: C
asked 18/09/2024
Gilbert Ciepluch
57 questions

Question 153

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

Entity-level
Entity-level
Activity-level
Activity-level
Transaction-level
Transaction-level
Process-level
Process-level
Suggested answer: A
asked 18/09/2024
jose fajardo
37 questions

Question 154

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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 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 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 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
An employee who creates a denial of service in the organization's computer systems is committing asset misappropriation
Suggested answer: A
asked 18/09/2024
Josh Rose
44 questions

Question 155

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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
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
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
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
Internal auditors are responsible for managing the risks of the organization
Suggested answer: C
asked 18/09/2024
Massimo Cerqui
42 questions

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?

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
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
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
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
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
Suggested answer: C
asked 18/09/2024
Mikalai Yurouski
35 questions

Question 157

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

Completed education credits
Completed education credits
Membership in professional organizations
Membership in professional organizations
Subscriptions to sources of relevant professional information
Subscriptions to sources of relevant professional information
Professional development and training plans
Professional development and training plans
Suggested answer: A
asked 18/09/2024
Fu Sin
38 questions

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'?

Assess compliance with the organization's code of conduct
Assess compliance with the organization's code of conduct
Oversee the governance and risk management processes
Oversee the governance and risk management processes
Initiate new organizational control processes
Initiate new organizational control processes
Provide advice on organizational governance activities
Provide advice on organizational governance activities
Suggested answer: A
asked 18/09/2024
Fronzino Franco
43 questions

Question 159

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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
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
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
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
Believing there must be errors in a given balance sheet account the internal auditor decides to expand his testing
Suggested answer: B
asked 18/09/2024
Harri Jaakkonen
50 questions

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?

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
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 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
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
Peer reviews are generally less cost-effective than hiring an external quality assessor
Suggested answer: B
asked 18/09/2024
Kinshuk Choubisa
48 questions
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Related questions

A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?
A global manufacturing company has three regional offices. The chief audit executive (CAE) is concerned about the cost of an upcoming external quality assessment of the internal audit activity. The last external assessment was performed six years ago. Recently, the internal audit staff at one of the regional offices performed an internal assessment. To ensure conformance with the Standards, what is the most appropriate action for the CAE to take?
Which of the following statements is true regarding risk management frameworks?
To meet the resource requirements of this year's internal audit plan, the chief audit executive (CAE) has recruited additional staff auditors, including an employee who resigned as a senior supervisor from the accounts payable department two months ago. There is a scheduled accounts payable review that the CAE wants to start within the next five months. Which approach should the CAE take, knowing the expertise of his new recruit in the area intended to be audited?
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Which of the following requests, if accepted by the internal audit activity, would impair its independence?
Regarding the chief audit executive (CAE). which ot the following is considered an impairment to the independence of the internal audit activity?
An Internal auditor accepted a role as an engagement supervisor on a highly specialized and technical engagement for which she did not have the expertise. Which of the following fundamental principles of The IIA's Code of Ethics did she violate?
Which of the following would best preserve the organizational independence of the internal audit activity?
Which should the internal auditor first consider when assessing fraud risks during an engagement?