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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 46

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Question 451

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While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the int

Question 452

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Which of the following process weaknesses is most likely to cause an internal auditor the most concern about fraud risk?

Question 453

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An internal auditor in a busy internal audit activity reviews her continuing professional development records toward the end of the year and is concerned to find she has undertaken limited training

Question 454

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Which of the following engagements would be considered an appropriate consulting service?

Question 455

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Which of the following statements is true regarding an organization's code of ethics?

Question 456

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According to The IIA's Code of Ethics, an internal auditor who has a romantic relationship with an audit client violates which of the following rules of conduct?

Question 457

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According to IIA guidance, the nature and scope of assurance and consulting services to be offered must be clearly delineated in which of the following internal audit documents?

Question 458

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

Question 459

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Which of the following policies promotes internal audit objectivity?

Question 460

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In which of the following situations has the internal auditor violated the IIA's Code of Ethics?

Question 451

While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering department. What is the most appropriate course of action for the CAE to take?

Include the engineering department on the audit plan, use the available internal audit resources to conduct the review, and exclude procedures that cannot be adequately assessed.

Advise management to accept the assessed risk until the internal auditors are able to review the area adequately.

Recruit internal auditors with the required competencies and wait until they are employed before including this audit on the internal audit plan.

Proceed with a review of the engineering department but supplement the internal audit team with nonauditors from an external engineering company who have the required skills to assist

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Question 452

Which of the following process weaknesses is most likely to cause an internal auditor the most concern about fraud risk?

Final employee payroll list is belatedly sent to the bank for payment processing.

Employee salary is calculated by the payroll system without further verification.

Employee personal records in the permanent file are not updated in a timely manner

Employee personal information in the payroll system could be updated without approval.

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Question 453

An internal auditor in a busy internal audit activity reviews her continuing professional development records toward the end of the year and is concerned to find she has undertaken limited training and formal professional development. Which of the following actions is the most appropriate for her to take?

Remind the chief audit executive (CAE) that he is responsible for her continuing professional development and needs to address the issue

Contact her professional organization and explain that she does not need formal professional development, as she is being developed sufficiently through undertaking audit engagements.

Accept that she is unlikely to meet continuing professional development requirements but look to attend training courses at the next available time.

Accept that she is responsible for her own continuing professional development, develop a professional plan, and discuss it with the CAE.

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Question 454

Which of the following engagements would be considered an appropriate consulting service?

The internal audit activity of a commercial bank routinely performs branch audits for compliance with regulations.

The internal audit activity participates in a cosourcing arrangement with an IT audit firm to test information systems security.

The internal audit activity facilitates biannual training of the risk management team in risk identification methodologies.

The internal audit activity partners with external auditors annually to complete fieldwork required as a part of the external audit exercise.

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Question 455

Which of the following statements is true regarding an organization's code of ethics?

It should be written with primary consideration given to using a rule-based approach.

It should be of two variations: one applicable internally and one applicable for third parties.

Its operational effectiveness cannot be tested using traditional audit and rating systems such as maturity models.

It should require an annual attestation of compliance with the code of conduct by all employees.

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Question 456

According to The IIA's Code of Ethics, an internal auditor who has a romantic relationship with an audit client violates which of the following rules of conduct?

Confidentiality.

Independence.

Integrity.

Objectivity.

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Question 457

According to IIA guidance, the nature and scope of assurance and consulting services to be offered must be clearly delineated in which of the following internal audit documents?

The internal audit policies and procedures handbook.

The internal audit charter.

The internal audit mission statement.

Each internal audit engagement letter.

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Question 458

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

The chief audit executive reports directly to the board

Internal auditors may not disclose personal data of the audit client

Internal auditors may not accept gifts from management of the area under review

Internal auditors must observe the law and make required disclosures

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Question 459

Which of the following policies promotes internal audit objectivity?

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

The CAE s compensation is approved by the chief financial officer

The CAF's appointment is determined by the CEO

The CAE reports administratively to the chief operating officer

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Question 460

In which of the following situations has the internal auditor violated the IIA's Code of Ethics?

An employee confided in an internal auditor and told him about fradulent activities. Although the employee asked for confidentially, the auditor disclosed her identity later during police questioning.

While auditing payroll controls, an auditor was granted temporary access to salary data. The auditor referred to the acquired information while negotiating her work conditions three months later.

Management considers an auditor to be highly competent and asked the audit to participate in an upcoming acquisition project. The auditor declined the request, calming a lack of knowledge.

An internal auditor failed to acquire the continuing education credits needed for the year and requested that. The IIA change his certification status to inactive until the completed the required education activities.

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Total 758 questions