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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 22

List of questions

Question 211

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Which of the following should catch the internal auditor's attention as a potential red flag for fraud?

The accounting unit keeps detailed records and preserves supporting documentation in excess of company requirements
The accounting unit keeps detailed records and preserves supporting documentation in excess of company requirements
One of the subsidiaries has more bank accounts than any other comparable subsidiary
One of the subsidiaries has more bank accounts than any other comparable subsidiary
The same external audit firm has been with the company for three years without rotation
The same external audit firm has been with the company for three years without rotation
The arithmetic median tenure of employees working at production facilities is 15 years
The arithmetic median tenure of employees working at production facilities is 15 years
Suggested answer: B
asked 18/09/2024
Akram Abou Soultan
37 questions

Question 212

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When issuing his department's performance report, a sales director in an insurance company knowingly fails to correct the reserves for unearned income that resulted from cancellations of policy subscriptions. This could be considered which of the following types of fraud?

Asset misappropriation
Asset misappropriation
Skimming
Skimming
Disbursement fraud
Disbursement fraud
Information misrepresentation
Information misrepresentation
Suggested answer: D
asked 18/09/2024
Padmanabhan Kudiarasu
53 questions

Question 213

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Six months after an employee was transferred to the internal audit activity his former operating manager requested that he return to assist a project team with the evaluation of a new pricing module for the organization's online ordering system According to IIA guidance which of the following statements is true?

The auditor cannot be assigned to this project, as it has been fewer than 12 months since he was transferred from that department.
The auditor cannot be assigned to this project, as it has been fewer than 12 months since he was transferred from that department.
Another internal auditor should be appointed to the engagement to preserve the independence of the internal audit activity
Another internal auditor should be appointed to the engagement to preserve the independence of the internal audit activity
The auditor cannot participate in the assignment, as providing an opinion would impair his objectivity
The auditor cannot participate in the assignment, as providing an opinion would impair his objectivity
The auditor may participate on the project, as the nature of the assignment is consulting
The auditor may participate on the project, as the nature of the assignment is consulting
Suggested answer: D
asked 18/09/2024
Tom Bodett
40 questions

Question 214

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An internal audit team received the following feedback from operational management via a postengagement survey "Management agrees with all audit findings However, the audit team did not consider our input on the best way to resolve the issues" This feedback is an indication that the internal audit activity may need to improve which of the following interpersonal skills?

Leadership
Leadership
Conflict management
Conflict management
Communication
Communication
Influence
Influence
Suggested answer: C
asked 18/09/2024
Jose Ortuondo Arambalza
44 questions

Question 215

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An internal auditor has suspicions that some fictitious vendors have been created in the organization's computer system. Which of the following would be the best technique to detect this fraud?

Review for duplicate invoice numbers, duplicate dates, and duplicate amounts
Review for duplicate invoice numbers, duplicate dates, and duplicate amounts
Run checks to find matches between vendor and employee addresses
Run checks to find matches between vendor and employee addresses
Check for recurring requests for refunds where invoices are paid twice
Check for recurring requests for refunds where invoices are paid twice
Review for unexplained increases in inventory
Review for unexplained increases in inventory
Suggested answer: B
asked 18/09/2024
Eduardo Collado
34 questions

Question 216

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According to IIA guidance, which of the following would the internal audit activity examine in order to evaluate the organization's governance process for strategic and operational decisions'?

The risk assessment process including interviews with senior management.
The risk assessment process including interviews with senior management.
The organization's mission and value statements, code of conduct, and whistleblowing policy
The organization's mission and value statements, code of conduct, and whistleblowing policy
Board meeting minutes the board policy manual, and past audit reports
Board meeting minutes the board policy manual, and past audit reports
Staff compensation objective setting and the performance evaluation policy and process
Staff compensation objective setting and the performance evaluation policy and process
Suggested answer: B
asked 18/09/2024
Ahmed Otmani Amaoui
37 questions

Question 217

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What should be the first step for a newly hired chief audit executive to build and maintain the proficiency of the internal audit activity'?

Incorporate the basic criteria of internal audit competency into job descriptions
Incorporate the basic criteria of internal audit competency into job descriptions
Complete a periodic skills assessment of the internal audit activity
Complete a periodic skills assessment of the internal audit activity
Develop a competency or skill assessment tool.
Develop a competency or skill assessment tool.
Perform benchmarking with competitors to learn what other firms are doing related to this topic
Perform benchmarking with competitors to learn what other firms are doing related to this topic
Suggested answer: B
asked 18/09/2024
Aidan Lear
53 questions

Question 218

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Due to the increased operational responsibility of the CEO the chief audit executive (CAE) of an organization currently reports to the chief financial officer (CFO) What is the likely impact of such a situation?

There may be limitation in the scope of engagements that can be undertaken
There may be limitation in the scope of engagements that can be undertaken
The CFO could provide expert advice when auditing areas under his purview
The CFO could provide expert advice when auditing areas under his purview
The internal audit activity is adequately positioned when the CAE reports to a member of executive management
The internal audit activity is adequately positioned when the CAE reports to a member of executive management
The expertise of finance staff can be called upon during an audit of finance-related areas
The expertise of finance staff can be called upon during an audit of finance-related areas
Suggested answer: A
asked 18/09/2024
Cristian Pernia
46 questions

Question 219

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According to IIA guidance, which of the following best describes the chief audit executive s responsibility for confirming to the board the organizational independence of the internal audit activity'?

The CAE must do this at least annually
The CAE must do this at least annually
The CAE must do this at least once every five years
The CAE must do this at least once every five years
The CAE must do this upon completion of each external quality assessment
The CAE must do this upon completion of each external quality assessment
The CAE should do this periodically in conjunction with a review of the internal audit charter
The CAE should do this periodically in conjunction with a review of the internal audit charter
Suggested answer: A
asked 18/09/2024
Mark Wingate
34 questions

Question 220

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Which of the following is a greater consideration for internal auditors when they are performing a consulting engagement than when they are performing an assurance engagement'?

The relative complexity of the engagement
The relative complexity of the engagement
The cost of the engagement relative to its benefits
The cost of the engagement relative to its benefits
The extent of work needed to achieve the engagement's objective
The extent of work needed to achieve the engagement's objective
The needs and expectations of the engagement client
The needs and expectations of the engagement client
Suggested answer: D
asked 18/09/2024
John Tourloukis
35 questions
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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?