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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 25

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List of questions

Question 241

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In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

Question 242

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According to The IIA's Code of Ethics, which of the following statements is true?

Question 243

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According to The IIA's Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

Question 244

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An investment advisory firm purchased professional liability insurance to offer protection from lawsuits brought by customers claiming they received poor or erroneous advice. Which of the following

Question 245

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Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?

Question 246

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An employee accepts cash payments from customers and does not record the sale. This is an example of which of the following types of fraud?

Question 247

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A large commercial bank was fined by regulators for fraudulent practices when employees, over a period of time, opened thousands of new accounts for existing clients without the clients' consent. It

Question 248

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Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?

Question 249

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An internal audit team analyzed the organization's value-at-risk model during an assurance engagement and suggested several useful improvements. Management was impressed by the internal audit team's

Question 250

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Which of the following actions taken during an audit engagement is the best demonstration of an internal auditor's due professional care?

Question 241

In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

It A new internal audit activity was formed four years ago. An external assessment was never performed, but successive internal assessments were performed and support the conclusion that the internal audit activity conforms with theStandards

An internal self-assessment completed yesterday found that the internal audit activity did not conform with the Standards when carrying out its work. However, the preceding independent external assessment supports the conclusion that the internal audit activity conforms with the Standards.

To reduce costs, the CAE excluded the use of external assessors from the internal audit activity's quality assurance and improvement program for the past seven years.However, the CAE concluded that the internal audit activity conforms with the Standards because all internal assessments over the period have supported this conclusion.

The results of the last external assessment of the internal audit activity, performed a little over five years ago, indicated that the internal audit activity conforms with the Standards. The most recent internal assessment performed within the past year also indicates conformance.

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Question 242

According to The IIA's Code of Ethics, which of the following statements is true?

When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, the fails to demonstrate objectivity.

When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant, he fails to demonstrate competency.

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Question 243

According to The IIA's Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

An internal audit manager collaborates with senior management to provide misleading information to government authorities.

An internal audit manager provides sample audit reports and workpapers to a friend without obtaining prior approval

An internal audit manager carries out a technical audit request without seeking expert opinion, despite a lack of the requisite skills.

An internal audit manager assigned to audit a sales process failed to reveal that the process owner is a relative

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Question 244

An investment advisory firm purchased professional liability insurance to offer protection from lawsuits brought by customers claiming they received poor or erroneous advice. Which of the following best describes this risk management technique?

Mitigation.

Acceptance

Transfer.

Avoidance

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Question 245

Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?

The internal auditor and engagement client established an understanding that the scope would include the new payroll system project.

The payroll system engagement was scheduled as a result of internal audit's risk-based annual planning process.

The internal auditor concluded that the engagement objectives would include assessing the effectiveness of the payroll process controls.

The internal auditor acknowledged the engagement client's satisfactory performance in the final engagement results that were communicated to senior management and the board.

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Question 246

An employee accepts cash payments from customers and does not record the sale. This is an example of which of the following types of fraud?

Asset misappropriation.

Skimming

Corruption.

Lapping.

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Question 247

A large commercial bank was fined by regulators for fraudulent practices when employees, over a period of time, opened thousands of new accounts for existing clients without the clients' consent. It was later found that employees were given unrealistic new account targets and were aggressively monitored by management on a daily basis.

Which of the following controls would have most likely reduced the likelihood of the fraudulent practice from occurring?

An evaluation of the current performance and compensation program.

The performance of background investigations on all existing employees.

The availability of fraud training to all employees.

The availability of an employee whistleblower hotline

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Question 248

Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?

Assessing the risk of noncompliance with laws and regulations

Following the policies as prescribed by the internal audit manual.

Advising management of the area under review on how to mitigate internal control risks.

Conducting the engagement on the presupposition that fraud exists.

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Question 249

An internal audit team analyzed the organization's value-at-risk model during an assurance engagement and suggested several useful improvements. Management was impressed by the internal audit team's work and requested additional actions. Which of the following requested actions would impact internal audit independence most severely if fulfilled?

Assess the effectiveness of the model at least semi-annually.

Modify model inputs and suggest courses of action based on outcomes.

Employ acquired experience to test other models used by the company.

Validate whether model outputs serve the purpose stated by the model.

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