IIA-CIA-PART1 Online Practice Questions and Answers

According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?

I. Oversight of Work Coordination of Activities Chief audit executive Senior management

II. Board Chief audit executive

III. Chief financial officer Chief audit executive

IV.

Board Chief financial officer

A.

I

B.

II.

C.

III.

D.

IV.

Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?

A. The total number of cars approved.

B. The ratio of cars rejected to total cars inspected.

C. The number of cars inspected per inspection agent.

D. The average amount of fees collected per cashier.

The chairperson of an organization's audit committee has obtained a risk management report that identifies significant industry concerns that impact the organization. The chairperson has asked the chief audit executive (CAE) to review these concerns and advise if they are relevant to the organization. How should the CAE respond?

A. Accept the engagement but communicate only with the audit committee to protect the confidentiality of the request.

B. Decline the engagement because it is outside of the scope of the internal audit charter.

C. Decline the engagement because it impairs the internal audit activity's independence.

D. Accept the engagement but inform senior management of the request.

During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should: A. Exclude the relative's information from the audited work and proceed with the audit engagement.

B. Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.

C. Immediately withdraw from the audit engagement.

D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.

An internal auditor pays to participate in the company's annual golf tournament, which is held outside of normal business hours.

The auditor wins the putting contest and is awarded an all-expense-paid weekend vacation.

According to the IIA Code of Ethics regarding objectivity, the auditor's best course of action would be to:

A. Refuse the prize because the amount is significant.

B. Accept the prize because the event was held outside of normal business hours.

C. Refuse the prize because it represents an impairment to objectivity.

D. Accept the prize because the auditor received no special treatment.

Which of the following is not part of the five-attribute approach to developing documentation for an audit observation?

A. Condition.

B. Effect.

C. Management response.

D. Recommendation.

Which of the following would be outside the scope of acquiring and developing human resources for an internal audit department?

A. Requiring audit staff to participate in continuing education activities.

B. Writing job descriptions for audit staff, audit managers, and other auditing positions.

C. Conducting individual counseling sessions regarding professional development and performance.

D. Evaluating auditors' compliance with standards and level of audit effectiveness.

What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?

A. Detailed objectives for internal audit engagements.

B. Confirmation that past audit recommendations have been implemented.

C. Evaluation of the adequacy of internal audit policies and procedures.

D. Performance appraisals of the internal audit staff.

While performing an internal audit engagement, an auditor reviews a flowchart of the organization's purchasing function. Which of the following internal control weaknesses would the auditor be able to identify in the chart?

A. That purchasing policies have not been updated.

B. That supplier invoices are processed and paid before the goods are received.

C. That the organization is not taking advantage of quantity discounts available from its suppliers.

D. That authorization for payment of goods received has not been granted at the appropriate level.

A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

A. Require that all staff obtain a minimum of two relevant audit certifications.

B. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

C. Engage a consultant to benchmark the IAA's training program against its peers.

D. Assign one experienced manager to better coordinate staff training and development activities.