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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 6

Question list

List of questions

Question 51

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In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?

Question 52

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An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement superv

Question 53

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Applying ISO 31000, which of the following is part of the external context for risk management?

Question 54

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The internal audit activity is asked to review the effectiveness of controls around the disposal of chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this

Question 55

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A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwi

Question 56

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After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the acco

Question 57

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If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?

Question 58

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Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?

Question 59

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A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of

Question 60

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In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?

Question 51

In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?

Involve board members in hiring activities and request advice.

Require all internal audit staff to complete the same training course on a general audit subject,

Require senior auditors to obtain a professional certification.

Provide a competency assessment of the internal audit staff.

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An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?

The policies and procedures of the internal audit activity.

The provisions of the internal audit charter.

The authority of the CEO.

The IIA's Code of Ethics.

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Question 53

Applying ISO 31000, which of the following is part of the external context for risk management?

Risk treatment method based on risk evaluation.

Organizational culture, objectives, and processes.

The regulatory and competitive environment

The method of determining the risk level.

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Question 54

The internal audit activity is asked to review the effectiveness of controls around the disposal of chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this review. Which of the following would be the most appropriate approach?

An internal auditor who recently attended a three-day workshop on chemical waste disposal, and therefore has the most knowledge on the topic, should lead the engagement.

A team of available internal auditors should be assembled and should consult with an external nonaudit expert on chemical waste disposal to plan and conduct the engagement.

A team of the most knowledgeable auditors could be assembled and use the engagement work program from the previous year to gather additional insight regarding recommended audit procedures.

A nonaudit employee from the chemical disposal area may share his expertise with the audit team, provided the internal audit manager conducts a detailed review of all engagement work performed.

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Question 55

A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

Internal auditors1performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits.

Standard training for each employee, including internal auditors, is 10 hours per year.

To enhance efficiency, internal auditors should not be rotated regularly among engagements.

Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

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Question 56

After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the accounts payable department. Which of the following is the IIA Code of Ethics principle that the auditor upheld?

Independence.

Confidentiality.

Objectivity.

Competency

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Question 57

If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?

Politely decline the engagement due to a lack of qualified staff available at the time.

Complete the engagement as requested, with the best of the current staffs abilities.

Consider using employees from other departments in the organization on the audit team.

Change the scope of the testing to ensure that only available staff proficiencies are used

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Question 58

Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?

Evaluate how the organization manages fraud risk.

Establish procedures for improving risk management processes.

Ensure risk responses are aligned with industry standards.

Verify that organizational objectives are aligned with each department's objectives.

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Question 59

A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with CSR.

The board is responsible for ensuring that CSR objectives are established, risks are managed, performance is measured, and activities are appropriately monitored and reported.

Management is responsible for ensuring that the organization's CSR principles are communicated, understood, and integrated into decision-making processes.

Generally, CSR activities are limited to the management of the organization; thus, employees do not have a responsibility for ensuring the success of CSR objectives.

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