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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 57

Question list

List of questions

Question 561

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A manufacturing organization's chief audit executive (CAE) was approached by the head of security from one of the manufacturer's third party suppliers The head of security requested internal audit r

Question 562

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According to IIA guidance which of the following correctly describes the standard risk treatments outlined in the process element approach of the framework for risk management?

Question 563

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According to IIA guidance which of the following statements is true regarding the internal audit charier?

Question 564

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A chief audit executive (CAE) has just joined an organization with an existing internal audit activity. Based on her review of the current organizational structure, the CAE determines that the inte

Question 565

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The CEO has delegated several responsibilities to the internal audit activity. Which of the following directives should concern the chief audit executive the most?

Question 566

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Which of the following approaches will internal audit utilize when developing a set of performance standards to measure an organization's risk management process against?

Question 567

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Which of the following describes an ongoing monitoring activity that could be performed as part of an internal assessment for a quality assurance and improvement program (QAIP)?

Question 568

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The head of human resources notified the internal audit activity that a key account manager was fired because he did not register a large number of contracts with clients As a result the organizatio

Question 569

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A chief audit executive has reported to the board that the internal audit activity is lacking financial accounting knowledge for specific audit projects. Upon approval from the board which of the fo

Question 570

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According to IIA guidance, an internal audit charter should detail which of the following?

Question 561

A manufacturing organization's chief audit executive (CAE) was approached by the head of security from one of the manufacturer's third party suppliers The head of security requested internal audit records from a recent audit engagement involving the third-party supplier The head of security believed those records contained information that would enable to identify employees of the thirdparty supplier who may be involved m fraudulent activities What is the most appropriate course of action for the CAE?

Obtain approval from the manufacturer's audit committee regarding the release of audit records

Release the records but first remove all data regarding the manufacturing organization s internal actions and procedures

Deny access to the records as the third party supplier s security learn should be able to investigate then own employees.

Consult with the manufacturer's senior management to determine whether releasing tie records would be appropriate

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Question 562

According to IIA guidance which of the following correctly describes the standard risk treatments outlined in the process element approach of the framework for risk management?

Risk avoidance risk sharing application of controls, risk application.

Risk avoidance risk identification application of controls risk acceptance.

Risk identification risk assessment risk avoidance risk monitoring

Risk identification risk assessment application of controls risk acceptance

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Question 563

According to IIA guidance which of the following statements is true regarding the internal audit charier?

The charier should be revised and re-approved whenever a new chief audit executive (CAE) is appointed or at the request of the board

The charier should be re-approved every five years, in conjunction with the external quality assessment

The charier can be revised at the discretion of the CAE whenever 4 is determined that its content no longer supports the achievement of objectives

The charier should be reviewed and resubmitted for board approval annually together with the audit plan

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Question 564

A chief audit executive (CAE) has just joined an organization with an existing internal audit activity.

Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?

Ensure the limitations are disclosed through communication with the board and senior management, so that the internal audit activity can continue operating under the same organizational structure.

Request that the board restructure the reporting line of the internal audit activity to ensure the CAE has unrestricted access to the board.

Rotate internal audit assignments among members of the internal audit activity to minimize the effects of the current structure.

Train internal auditors about organizational independence and have them sign an acknowledgment of understanding.

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Question 565

The CEO has delegated several responsibilities to the internal audit activity. Which of the following directives should concern the chief audit executive the most?

Internal auditors shall perform engagement-level risk assessments

Internal auditors shall perform risk management activities.

Internal auditors shall perform risk-based engagements

Internal auditors shall perform organization wide risk assessments

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Question 566

Which of the following approaches will internal audit utilize when developing a set of performance standards to measure an organization's risk management process against?

Key principles approach

Process elements approach

Holistic approach

Maturity model approach

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Question 567

Which of the following describes an ongoing monitoring activity that could be performed as part of an internal assessment for a quality assurance and improvement program (QAIP)?

Planning and supervising engagements

Evaluating the quality of supervision

Identifying opportunities for improvement m internal audit's processes and procedures

Determining if the objectives of QAIP are current

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Question 568

The head of human resources notified the internal audit activity that a key account manager was fired because he did not register a large number of contracts with clients As a result the organization was unaware of its duties and would suffer some financial loss Which of the following should be expected from a competent internal auditor who is analyzing this situation?

The ability to apply forensic methods to obtain legally admissible evidence

The ability to conduct admission-seeking interviews with potential suspects

The ability to evaluate whether such attributes as intent and personal gain were present

The ability to retrieve concealed or deleted information from the former employee's laptop

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Question 569

A chief audit executive has reported to the board that the internal audit activity is lacking financial accounting knowledge for specific audit projects. Upon approval from the board which of the following hiring approaches is best in this situation?

An inbound rotational program

A full-time permanent recruitment

An outbound rotational program

A guest auditor program

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