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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 31

Question list

List of questions

Question 301

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In which of the following scenarios would the internal auditor's objectivity be best protected?

Question 302

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Which of the following is an example of a management control technique?

Question 303

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An organization's board recommends revising the internal audit charter by adding requirements regarding the hiring and compensation of the chief audit executive as well as information on approving t

Question 304

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According to IIA guidance, which of the following actions by a new chief audit executive would be most appropriate to gain an understanding of the current level of knowledge, skills, and competencie

Question 305

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Which of the following is the best example of a risk appetite statement concerning an investment portfolio?

Question 306

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According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?

Question 307

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Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?

Question 308

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Senior management has requested that the internal audit activity review and amend policies where necessary when auditing the purchasing department. To which of the following would the chief audit ex

Question 309

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Which of the following best describes the risk created when a manager bypasses organizational policies and procedures in order to meet an organization's objective?

Question 310

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Which of the following would be the best choice for a continuing professional development requirement for a newly created internal audit activity?

Question 301

In which of the following scenarios would the internal auditor's objectivity be best protected?

A former human resources manager conducts an effectiveness review of the appointment and termination process six months after transferring to the internal audit activity.

An accounts payable clerk assists the internal auditors during an effectiveness review of the physical access controls to the server room.

An internal auditor writes the system manual for a newly acquired payroll software application prior to conducting an effectiveness review of the system.

An internal auditor conducts an effectiveness review of an organization's business continuity plan in which his son is a minority stockholder.

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Question 302

Which of the following is an example of a management control technique?

A budget.

A risk assessment.

The board of directors.

The control environment

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An organization's board recommends revising the internal audit charter by adding requirements regarding the hiring and compensation of the chief audit executive as well as information on approving the internal audit budget. Which of the following is the board most likely defining in the charter?

Functional and administrative responsibilities of internal audit activity.

Authority and objectivity of internal audit activity.

Independence and objectivity of internal audit activity.

Assurance and improvement of internal audit activity.

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Question 304

According to IIA guidance, which of the following actions by a new chief audit executive would be most appropriate to gain an understanding of the current level of knowledge, skills, and competencies required by an internal audit activity to fulfill its responsibilities?

Identify gaps in the activity's proficiency, based on criteria defined by a widely accepted competency framework.

Have a quality assessment review performed by an expert external entity.

Identify a mature internal audit activity to serve as a benchmark for measuring the internal audit activity's competence.

Assess whether members of the internal audit activity understand and apply the 11As mandatory guidance.

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Question 305

Which of the following is the best example of a risk appetite statement concerning an investment portfolio?

We will request CEO approval for investments greater than S20 million and board approval for investments greater than $50 million.

We will hedge 95 percent of our U S. currency exposure and 100 percent of our European currency exposure.

We have a moderate tolerance for investment earnings volatility with a target value at risk of S50 million.

We will report to the risk committee all credit losses greater than S10 million and all market value losses greater than S20 million.

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Question 306

According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?

Outline expectations for communicating the results of all aspects of the internal audit activity.

Declare the internal audit activity's accountability for safeguarding assets and confidentiality.

Document the chief audit executive's (CAE's) reporting line

Document agreement between the CAE and the individual to whom the CAE reports

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Question 307

Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?

To accurately conduct performance appraisals

To ensure that staff complete required continuing professional education credits annually.

To ensure that the resources needed to complete the audit plan are available.

To satisfy the audit committee requirements.

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Question 308

Senior management has requested that the internal audit activity review and amend policies where necessary when auditing the purchasing department. To which of the following would the chief audit executive most likely give primary consideration when responding to this request?

Auditor competency.

Internal audit independence.

Auditor objectivity.

Engagement scope.

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Question 309

Which of the following best describes the risk created when a manager bypasses organizational policies and procedures in order to meet an organization's objective?

Accountability/reward risk.

Monitoring failure risk.

Communication failure risk.

Knowledge/skills risk

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