IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 61
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Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?
The CAE tasks internal auditors with coordinating assurance activities with other providers across the organization.
The CAE encourages auditors to volunteer to support research work of the local professional institute.
The CAE requires auditors to periodically attest to the profession's Code of Ethics.
The CAE reminds auditors to ensure workpapers are completed for audit engagements.
A risk assessment showed that the cost of addressing a particular risk in the organization's human resources department is greater than the perceived benefit. Which risk response approach should the organization take in this scenario?
Reduce the risk.
Transfer the risk.
Accept the risk.
Share the risk.
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Encourage the auditor to continue this practice, as it demonstrates objectivity.
Encourage the auditor to improve communication skills.
Encourage the auditor to conduct post-engagement surveys to obtain the audit client's position on the issues raised.
Encourage the auditor to sign the draft reports before submitting them.
A telecommunications organization is planning to cease operations in one or the markets in which it operates due to increasing volatility and uncertainties. Which of the following risk management techniques is the organization selecting?
Risk acceptance.
Risk avoidance.
Risk sharing.
Risk reduction.
The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigator. Which of the following would most likely be the next step?
Ask internal auditors to gather all relevant information and evidence.
Identify and interview witnesses first and potential suspects later.
Conduct a fraud risk assessment to identify the most vulnerable areas.
Determine the competencies needed and assess whether team members have a conflict of Interest.
The chief audit executive (CAE) has decided to outsource an audit of the organization's cloud governance in the annual audit plan. Why would the CAE outsource this audit?
Lack of internal audit staff proficiency.
Lack of audit planning.
Lack of internal assessments.
Lack of due professional care.
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
An independent third party has assessed the organization's system of internal controls to be adequate and effective.
The chief audit executive reports both functionally and administratively to the CEO.
The internal audit charter is drafted properly and approved by the appropriate parties.
The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
An internal auditor at a multinational organization is reviewing the effectiveness of the organization's risk management framework. In this scenario, which of the following statements is true?
The auditor should consider local cultures and customs in various regions when assessing control effectiveness.
Regardless of their location, employees at all levels share responsibility for designing effective controls to mitigate risks.
To achieve an effective internal control environment, the organization's risk management plan must be documented and communicated to all levels throughout each region.
Setting clear objectives is a precondition to effectively identifying, assessing, and responding to the organization's risks.
An internal auditor believes that a weakness exists in the control environment relating to the delegation of authority and responsibility within the management structure. Which of the following actions should the internal auditor first consider in this matter?
Recommend a control change and obtain management support.
Evaluate the potential Impact on related controls.
Address the risk with senior management and the board.
Develop and communicate the scope and evaluation criteria to be used by management.
Which of the following most accurately describes corporate social responsibility at an organization?
An organizational locus on improving the overall environment, even it is to the detriment of the local community.
A philosophy driven by employees that flows up to senior management and the board of directors.
An overall commitment of the organization to improve the quality of life for not only the employees but the community at large.
A policy of ensuring that the organization is socially responsible, even if it leads to unprofitability due to increased costs.
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