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

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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?

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 subs

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

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

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?

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'?

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'?

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

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

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'?

Question 211

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

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 arithmetic median tenure of employees working at production facilities is 15 years

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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

Skimming

Disbursement fraud

Information misrepresentation

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Question 213

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.

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 may participate on the project, as the nature of the assignment is consulting

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Question 214

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

Conflict management

Communication

Influence

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Question 215

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

Run checks to find matches between vendor and employee addresses

Check for recurring requests for refunds where invoices are paid twice

Review for unexplained increases in inventory

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Question 216

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 organization's mission and value statements, code of conduct, and whistleblowing policy

Board meeting minutes the board policy manual, and past audit reports

Staff compensation objective setting and the performance evaluation policy and process

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Question 217

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

Complete a periodic skills assessment of the internal audit activity

Develop a competency or skill assessment tool.

Perform benchmarking with competitors to learn what other firms are doing related to this topic

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Question 218

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

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 expertise of finance staff can be called upon during an audit of finance-related areas

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Question 219

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 once every five years

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

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Question 220

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 cost of the engagement relative to its benefits

The extent of work needed to achieve the engagement's objective

The needs and expectations of the engagement client

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Total 758 questions