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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 30

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List of questions

Question 291

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Which of the following statements about internal audit consulting engagements is true?

Question 292

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Which of the following is true regarding the use of a formal risk management framework?

Question 293

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According to IIA guidance, which of the following is most critical to ensuring that an organization's risk management program remains effective over time?

Question 294

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Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

Question 295

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Which of the following statements is true regarding consulting engagements?

Question 296

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Which of the following describes two duties that should not be performed by the same person?

Question 297

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According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

Question 298

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Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

Question 299

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An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several inter

Question 300

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According to IIA guidance, which of the following actions best demonstrates due professional care by an internal auditor when she discovers a number of fraud-related red flags during an audit engage

Question 291

Which of the following statements about internal audit consulting engagements is true?

The primary purpose of a consulting engagement is to assess evidence and provide conclusions.

The internal audit activity determines the nature and scope of work for the specific consulting engagement

Internal auditors may provide consulting services relating to operations for which they had previous responsibilities.

It is not appropriate to communicate control issues identified during consulting engagements to the board

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Question 292

Which of the following is true regarding the use of a formal risk management framework?

It facilitates a methodical approach to risk mitigation.

It defines and standardizes the terminology used in risk communication.

It establishes the risk tolerance levels to be accommodated in the strategy.

It facilitates the alignment of risk mitigation strategies with management priorities.

1. 2. and 3.

1.2. and 4.

1.3. and 4.

2. 3, and 4.

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Question 293

According to IIA guidance, which of the following is most critical to ensuring that an organization's risk management program remains effective over time?

Ensuring a fully executed assurance role for the internal audit activity.

Conducting risk evaluations that include ranking the relative importance of each risk.

Establishing a risk management function and appointing a chief risk officer.

Conducting a combination of ongoing risk reviews and individual evaluations.

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Question 294

Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

Accommodation.

Reaction.

Defense.

Proaction.

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Question 295

Which of the following statements is true regarding consulting engagements?

Internal auditors cannot provide consulting services related to operations for which they had previous responsibilities.

The nature of consulting services to be performed by internal auditors must be defined in the internal audit charter

If internal auditors have potential impairments to objectivity related to the proposed consulting engagement, the engagement must be declined.

If internal auditors lack the knowledge, skills, or other competencies needed to perform the consulting engagement, the engagement can proceed with proper disclosures.

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Question 296

Which of the following describes two duties that should not be performed by the same person?

Posting cash receipts and cash payments to the general ledger.

Posting bad debt write-offs and reconciling the accounts payable subsidiary ledger.

Distributing payroll checks and approving sales returns for credit.

Recording cash receipts and preparing bank reconciliations.

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Question 297

According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

Senior management

Internal audit activity.

All employees.

Board of directors.

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Question 298

Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).

Approve the annual budget and resource plan for the internal audit activity.

Assist the CAE with hiring objective and competent internal audit staff.

Encourage the CAE to communicate and coordinate with the external auditor.

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An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several internal auditors on staff are qualified to perform basic assessments of IT systems, none are familiar with the new system. Which of the following is a legitimate response to the prospective client?

Decline the engagement.

Proceed with the engagement, performing only those parts of the engagement that the internal auditors are qualified to perform.

Accept the engagement and develop the additional competencies in-house prior to the engagement's starting date.

Make arrangements to obtain assistance from a competent IT auditing expert.

1 and 4 only.

2 and 3 only.

1. 2, and 3 only.

1, 3, and 4 only.

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Question 300

According to IIA guidance, which of the following actions best demonstrates due professional care by an internal auditor when she discovers a number of fraud-related red flags during an audit engagement?

Conclude the engagement and inform management that fraud has occurred

Perform further testing to verify the existence of fraud.

Suspend the engagement and undertake a formal fraud investigation.

Notify the board of the possible fraud immediately

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Total 758 questions