IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 70
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Which should the internal auditor first consider when assessing fraud risks during an engagement?
Compare the organizations fraud strategies with the industry's strategies.
Review any related prior fraud investigations.
Investigate any related fraud allegations.
Communicate any suspicious fraud activities to management.
An external assessment was performed as part of the organization's quality assurance and improvement program. Which of the following conclusions confirms that the internal audit activity is in conformance with the Standards'?
The chief audit executive is well qualified and has responsibilities over operational areas that the internal audit activity assesses.
Periodic self-assessments are assigned to entry-level internal audit staff to support their continuing professional development.
All audit workpapers are reviewed and signed by the engagement supervisor before the audit report is issued.
Employees who rotate into the internal audit activity from other areas of the organization are assigned to audit areas where they previously worked, to take advantage of their operational expertise and experience.
A chief audit executive (CAE) recruited a few new internal auditors to reduce the resource gaps identified in this year's internal audit plan. One of the new recruits has several years of experience with the organization. Ten months ago. she served as a senior supervisor in the finance department. However, for the past 10 months, she has been helping the organization with implementing a new IT system. What approach should the CAE take for the upcoming financial statement controls audit?
Assign the new auditor to assist with conducting the fieldwork. but ensure that her work is reviewed by the CAE.
Assign the new auditor to assist with developing the audit program, but ensure that the audit program is executed by other audit staff.
Ensure that the new auditor's previous manager, and other close former coworkers, are excused during the audit.
Ensure that the new auditor is responsible only for the supervisory review, but not the execution of the audit field work.
According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?
The initial review of workpapers should be conducted after the final engagement report is issued.
Independent internal assessments of the internal audit activity should be performed by entry-level staff as part of on-the-job training.
Internal audit staff should be informed regularly of changes to policies and procedures.
Training documents should be destroyed at the end of the year to create space for the next year's training documents.
Which of the following are some of the requirements of the quality assurance and improvement program (QAIP)?
The OAIP should be conducted at least once every three years, and must be performed by an external assessor.
The OAIP should be conducted on an ongoing basis, and can be completed as a self-assessment,
he QAIP should include both internal assessments performed by staff and external assessments performed by independent, objective individuals
The OAIP should be performed with scoping limitations established by the board.
According to The IIA's Competency Framework, which competency is considered the mandatory minimum for internal auditors to possess when performing internal audit engagements?
To recognize red flags that indicate fraud.
To recommend controls to prevent fraud.
To apply forensic auditing techniques to detect fraud.
To evaluate the potential for fraud.
An experienced internal auditor is planning an assurance engagement of the organization's sales activities. During process walkthroughs and interviews, many sales representatives expressed concerns about management's escalating demands to meet the organization's sales goals. According to the MA guidance, which of the following is the best application of due professional care in planning the engagement?
Disregard the complaints because the information isn't reliable and isn't sufficient to support engagement conclusions and results.
Consider the significance of the risks related to the complaints and develop appropriate assurance procedures in work programs.
Disregard the complaints because using them would violate the confidentiality principle.
Discuss management's needs and expectations related to including the complaints in the audit scope.
Which of the following practices is generally most effective to protect internal audit objectivity?
Ensuring regular documentation of auditor skills and experience in the workpapers.
Basing performance evaluations heavily on customer satisfaction surveys.
Prohibiting auditors from accepting gifts from audit clients or potential clients.
Ensuring that auditors have a balance of both operational and internal audit responsibilities.
Which of the following is true regarding internal audit role's in The IIA's Three Lines Model?
As internal control is part of risk management, the internal audit role in risk management implies reduced emphasis on internal control.
Internal audit can blur the distinction between the second and the third lines as long as value is added.
Internal audit cannot rely on other assurance providers when opining on the effectiveness of risk management.
Internal audit should be aligned with first- and second-line functions through effective communication, cooperation, and collaboration.
An organization is conducting a fraud risk assessment as part ol its risk management program. Which of the following steps is the organization most likely to perform first?
Identify relevant fraud risk factors.
Identify potential fraud schemes.
Identify existing controls for preventing and detecting fraud.
Identify red flags by conducting data analysis.
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