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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 36

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Question 351

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During an assurance engagement the internal audit team discovers that employees performing a control do not understand the principles behind it. Before the engagement concludes, at management's requ

Question 352

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During an assurance engagement an internal auditor discovered that risk limits risk limit were set for a new market expansion project Management of the area under review was eager to comply and subm

Question 353

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Which of the following should an internal auditor take into consideration when making a judgement regarding whether management selected appropriate risk responses?

Question 354

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Which of the following best demonstrates organizational independence of the internal audit activity?

Question 355

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Which of the following would be the most effective in helping to detect fraud?

Question 356

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Which of the following scenarios violates The IIA's standard regarding internal audit independence?

Question 357

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Considering the concepts of organizationwide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?

Question 358

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Which of the following activities best ensures that internal auditors grow professionally in alignment with current industry trends to meet the expectations of primary stakeholders?

Question 359

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Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of t

Question 360

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During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement sup

Question 351

During an assurance engagement the internal audit team discovers that employees performing a control do not understand the principles behind it. Before the engagement concludes, at management's request the audit team facilitates several formal training sessions to help explain those principles to the employees. Which of the following best describes the engagement provided by the internal audit activity in this scenario?

Assurance services

Blended services

Consulting services

Prohibited services

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Question 352

During an assurance engagement an internal auditor discovered that risk limits risk limit were set for a new market expansion project Management of the area under review was eager to comply and submitted a potential risk limit value for the auditor's review and approval. Which of the following would be an appropriate course of action for the auditor to take?

Review the submission and if no further remarks exist approve the risk limits

Provide advice if needed and ask management of the area under review to forward to senior management and the board for approval

Develop risk limit calculation criteria and ask management of the area under review to resubmit the values.

Avoid providing any advice or review until the audit report is issued

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Question 353

Which of the following should an internal auditor take into consideration when making a judgement regarding whether management selected appropriate risk responses?

Significant risks

Risk capacity

Risk appetite

Risk tolerance

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Question 354

Which of the following best demonstrates organizational independence of the internal audit activity?

The chief audit executive (CAE) reports functionally to the CEO.

The CAE's compensation is approved by the chief financial officer.

The CAE's appointment Is determined by the CEO

The CAE reports administratively to the chief operating officer.

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Question 355

Which of the following would be the most effective in helping to detect fraud?

Code of conduct.

Exit interviews.

Fraud awareness training

Employee promotion policy.

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Question 356

Which of the following scenarios violates The IIA's standard regarding internal audit independence?

The chief audit executive (CAE) reports on the internal audit activity's day-to-day tasks and responsibilities to the CEO.

An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.

The CAE regularly meets with the organization's chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.

The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer audits in the annual audit plan compared to the previous financial year.

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Question 357

Considering the concepts of organizationwide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?

Transaction-level control.

Management-oversight control.

Governance control.

Process-level control.

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Question 358

Which of the following activities best ensures that internal auditors grow professionally in alignment with current industry trends to meet the expectations of primary stakeholders?

Deploying self-assessments against a competency benchmark.

Acquiring memberships in professional organizations.

Developing professional succession plans.

Obtaining subscriptions to professional journals in their area of interest.

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Question 359

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

The risk of collusion between parties.

The risk of falsified reconciliations.

The risk of low-liquidity inventory.

The risk of damages to the inventory.

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Question 360

During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement supervisor, who disagrees with his suspicions and directs him to continue with the engagement as planned. Given the circumstance, what is the most appropriate action for the junior auditor to take?

Document in the workpapers and expand testing.

Continue with the engagement as planned, per the more senior auditor.

Report the suspected fraud to law enforcement officials and seek financial restitution.

Escalate the concern to the chief audit executive.

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Total 758 questions