IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 75
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According to IIA guidance, which of the following statements regarding ethics is true?
Business ethics may vary within an organization with both domestic and foreign operations.
Business ethics are universal in nature and organizations across the world are expected to comply with similar standards.
A business ethics policy for an organization is established solely to direct the behavior and expectations of employees.
Business ethics of an organization must remain independent from those of suppliers, customers, and business partners.
According to IIA guidance, which of the following would be the most appropriate to help a new internal auditor understand the nature and positioning of the internal audit activity within his organization?
The internal audit charter.
Examples of internal audit reports.
The internal audit policy and procedures manual.
The IIA's International Professional Practices Framework.
According to IIA guidance, which of the following is an appropriate role for the internal audit activity?
Coaching management in responding to risks.
Implementing risk responses on management's behalf.
Imposing risk management processes.
Setting the risk appetite.
Which of the following is most likely to result in the impairment of independence for the internal audit activity?
The chief audit executive (CAE) has a dual reporting relationship within the organization.
The CAE performs an audit of a functional area that is also under the CAE's oversight.
The CAE has unrestricted access to information throughout the organization and to the board.
The board is involved in decisions to hire or remove the CAE and in drafting and approving an internal audit charter.
Which of the following is the primary benefit of establishing a formal training program for the internal audit activity?
It is useful to reinforce the independence of the internal audit activity.
It is useful to guide internal auditors as they perform specific engagements.
It is useful to maintain the skills and competencies of internal audit staff.
It is useful to measure the effectiveness and maturity of the internal audit activity.
An internal audit activity is performing a governance engagement. Which of the following would provide the best evidence for an internal auditor when evaluating the organization's culture?
Personnel and customer surveys, actual reports, and due diligence results regarding third-party governance practices.
Details on mandatory reporting to third parties, disclosure committee charter and responsibilities, and the internal communication system.
Succession plans, development programs, and job descriptions with responsibilities and authorities.
Ethics and integrity policy; structured interviews with employees; and established and communicated values, mission, and vision.
Which of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?
The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system.
The volume of nonroutine journal entries has steadily increased over time.
The database of approved suppliers has not been reviewed in the last year.
The recent employee survey indicates that some employees remain unaware of the organization's whistleblower hotline.
The level of authority for the internal audit activity is granted by which of the following?
The chief audit executive.
The internal audit charter.
The International Professional Practices Framework.
The IIA's Code of Ethics.
Which of the following actions does a competency assessment tool help the chief audit executive perform?
Record that the internal audit activity's completion of audit assignments has been met.
Hire qualified and skilled internal auditors for the organization's internal audit activity.
Postpone audits where the internal team does not have the necessary skills or knowledge.
Assess the knowledge and skills of the internal audit activity to identify any gaps.
According to IIA guidance, which of the following activities are considered a core internal audit role with regard to enterprise risk management?
Reviewing the management of key risks.
Evaluating the reporting of key risks.
Evaluating risk management processes.
Consolidating the reporting of risks.
1 and 4.
2 and 4.
2, 3, and 4.
1, 2, and 3.
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