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IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 8

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Question 71

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Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

Question 72

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Which of the following best demonstrates that the internal audit activity is using due professional care?

Question 73

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Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?

Question 74

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If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?

Question 75

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Which of the following statements best describes the difference between risk appetite and risk tolerance?

Question 76

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An internal auditor discovered fraud while performing an audit of an organization's procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques i

Question 77

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Which of the following best describes the type of risk that an adequately designed and effectively operating system of internal controls should mitigate?

Question 78

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Which of the following is an example of a detective control?

Question 79

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Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?

Question 80

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According to NA guidance, which of the following is true regarding typical fraud schemes?

Question 71

Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

The internal audit activity constitutes the first line of defense in effective risk management.

The internal audit activity provides direction regarding internal controls implementation.

The internal audit activity verifies that management has met its responsibility for implementing effective controls.

The internal audit activity implements the internal control framework and advises management regarding best practices.

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Question 72

Which of the following best demonstrates that the internal audit activity is using due professional care?

The internal audit activity reports directly to the board on the engagements it performs.

Internal auditors undertake the necessary training to complete their audit work.

The completion of engagements is based on the assumption that fraudulent activities may exist.

Internal auditors consider the use of technology-based audit and other data analysts techniques

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Question 73

Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?

Regulatory approval from an accrediting agency.

Self-assessments against a competency framework.

Approval and signoff from the board of directors.

A review by external auditors on an annual basis

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Question 74

If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?

Evaluate the suspected activities to determine whether a forma! investigation is warranted,

Immediately inform senior management and the board of the suspected fraud.

Ascertain the level of resources needed to formally investigate the fraud, and proceed with the investigation if resources permit,

Include in the engagement documentation all possible effects and the potential impact of the fraud to the organization

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Question 75

Which of the following statements best describes the difference between risk appetite and risk tolerance?

Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk,

Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance is one approach to risk management.

Risk appetite refers to an organization's general level of acceptance, while risk tolerance is a more specific and subordinate concept.

There is no significant difference between the two terms.

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An internal auditor discovered fraud while performing an audit of an organization's procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?

Enhanced capability to prevent frauds from occurring.

Greater assurance that procurement frauds will be detected in a timely manner

Improved capability of evaluating fraud risks within the organization.

Greater understanding of fraud through better evidence collection

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Question 77

Which of the following best describes the type of risk that an adequately designed and effectively operating system of internal controls should mitigate?

Net.

Controllable.

inherent,

Residual.

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Question 78

Which of the following is an example of a detective control?

Automatic shut-off valve.

Auto-correct software functionality.

Confirmation with suppliers and vendors.

Safety instructions.

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Question 79

Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?

Department performance standards.

Remediation timeframes.

Nonconformance disclosures.

External assessment resources

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Question 80

According to NA guidance, which of the following is true regarding typical fraud schemes?

A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects the organization.

Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.

Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization's records.4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.

1 and 3.B.

1 and 4.

2 and 3.

2 and 4.

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Total 758 questions