IIA-CIA-Part1 exam

An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of...

Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?A . The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,B . The auditor decided not to notify her supervisor...

Identify and mitigate risks to help meet the CSR program objectives.A . 1,2, and 3,B . 1 2, and 4.C . 1, 3, and 4.D . 2, 3, and 4.View AnswerAnswer: B Explanation: According to IIA guidance, the internal audit activity can consult on CSR program design and implementation, serve...

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...

Which of the following best describes the internal audit activity's contribution to the implementation of the risk management framework?A . Internal audit identifies key risk areas during assurance reviews and provides audit findings.B . Internal audit assists with the prioritization of identified risks.C . Internal audit participates in setting the...

Which of the following situations is most likely to heighten an internal auditor's professional skepticism regarding potential fraud?A . A procurement manager does not have the expected academic credentials for his position.B . A salesperson frequently complains about the organization's policy on sales commissions.C . The accounts payable supervisor has...

Which of the following best describes the risk contained in an initial public offering for a new stock?A . Residual risk.B . Net risk.C . Inherent risk.D . Underlying risk.View AnswerAnswer: C Explanation: In the context of an initial public offering (IPO), the best description of the risk involved is...

Which of the following controls would best mitigate the risk of fraud in the bidding process?A . Have a bidding committee open the tender bids.B . Restrict the time to submit tender bids.C . Keep minutes of pre-bid meetings.D . Allow the higher tenders to rebid.View AnswerAnswer: A Explanation: Having...

Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?A . Evaluate how the organization manages fraud risk.B . Establish procedures for improving risk management processes.C . Ensure risk responses are aligned with industry standards.D . Verify...

While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation. However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their...