Home / IIA / IIA-CIA-Part1

IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 44

Question list

List of questions

Question 431

(0)

A whistle blower notified internal audit of a conflict of interest between an organization's employee and a major supplier. Which of the following steps should be undertaken first?

Question 432

(0)

Which of the following actions would best help the internal audit activity promote continuous improvement in control effectiveness within the organization?

Question 433

(0)

In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that

Question 434

(0)

It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

Question 435

(0)

According to MA guidance, which of the following statements is true regarding an effective governance process?

Question 436

(0)

As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The object

Question 437

(0)

During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids.

Question 438

(0)

A chief audit executive ensures that the internal audit activity provides annual training to management on internal controls. Where is the nature of these services defined?

Question 439

(0)

An internal auditor is finalizing an audit report on the effectiveness of the organization's overall system of internal control. Several audit tests were performed, and the only issue identified was

Question 440

(0)

In addition to her internal audit activity responsibilities, the chief audit executive has been asked to oversee the organization's insurance function. Which of the following responses is most appro

Question 431

A whistle blower notified internal audit of a conflict of interest between an organization's employee and a major supplier. Which of the following steps should be undertaken first?

Interview the employee identified by the whistleblower.

Attain an understanding of the employee's role, responsibilities, and relationship with the supplier.

Notify senior management, the board, and the external auditor about the alleged fraud

Review all the orders issued to the supplier to investigate potential fraud.

Show Answer Comment (0)

Question 432

Which of the following actions would best help the internal audit activity promote continuous improvement in control effectiveness within the organization?

Determining whether management measures and monitors the costs and benefits of controls.

Providing training on controls and ongoing self-monitoring processes.

Developing flowcharts to obtain information about control design adequacy.

Identifying objectives and the risks involved in achieving them.

Show Answer Comment (0)

In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?

Conformance with the Standards.

Nonconformance with the Standards

Unable to determine conformance with the Standards.

Partial conformance with the Standards

Show Answer Comment (0)

Question 434

It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

The cost-benefit relationship of planned audits.

Proficiency needed to carry out engagements.

Achievement of the objectives of internal control.

Quantity of the audits performed.

Show Answer Comment (0)

Question 435

According to MA guidance, which of the following statements is true regarding an effective governance process?

It stipulates that risk needs to be considered when making strategic decisions.

It encourages strict segregation of the risk management and internal control processes.

It relies on effective risk management when establishing the organization's risk appetite.

It relies on the board to devise ways to communicate the effectiveness of internal controls.

Show Answer Comment (0)

Question 436

As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?

The organization's board of directors.

The chief audit executive.

The business unit manager and the engagement supervisor.

The compliance manager and the business unit manager.

Show Answer Comment (0)

Question 437

During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids.

Which of the following would be the most effective preventative control to reduce these losses?

Ensure that returned merchandise is restocked to shelves or sent to the manufacturer by an independent employee.

Call a sample of customers who returned merchandise to test the legitimacy of the returns and check refund amounts.

Require that a manager use a reserved register code to approve voids or refunds.

Analyze voids and refunds by employee, credit card number, and amount for unusual numbers, amounts, or patterns.

Show Answer Comment (0)

Question 438

A chief audit executive ensures that the internal audit activity provides annual training to management on internal controls. Where is the nature of these services defined?

The annual audit plan.

The audit report.

The annual risk assessment.

The audit charter.

Show Answer Comment (0)

Question 439

An internal auditor is finalizing an audit report on the effectiveness of the organization's overall system of internal control. Several audit tests were performed, and the only issue identified was that the CEO frequently asks employees to make exceptions or bypass the organization's standard written policies and procedures. Which of the following conclusions is most appropriate for the auditor to report?

The auditor should indicate that the system of internal control is not effective.

The auditor should indicate that the system of internal control is generally effective, except for the minor issue identified.

The auditor should indicate that the system of internal control is effective.

The auditor cannot express a conclusive opinion in the audit report.

Show Answer Comment (0)

Question 440

In addition to her internal audit activity responsibilities, the chief audit executive has been asked to oversee the organization's insurance function. Which of the following responses is most appropriate?

Welcome the additional responsibility, as it represents an opportunity to gain more information for future audits.

Revise the internal audit charter to include oversight of the insurance function, ensuring that all of her responsibilities are properly documented.

Report the request to the board and recommend alternate processes to obtain assurance related to insurance activities.

Promptly remove the organization's insurance function from the audit universe.

Show Answer Comment (0)

Total 758 questions