Get IIA-CIA-Part1 Products Practice Material for IIA-CIA-Part1 Exam Question Preparation
Most Reliable IIA IIA-CIA-Part1 Training Materials
The exam is administered by the Institute of Internal Auditors (IIA), which is the leading professional organization for internal auditors worldwide. The IIA-CIA-Part1 exam is the first part of a three-part certification program that is designed to prepare candidates to become Certified Internal Auditors (CIA).
Passing the IIA-CIA-Part1 exam is an important step for those seeking a career in internal auditing. The CIA certification is recognized worldwide as a mark of excellence in the internal auditing profession, and it demonstrates a commitment to the highest standards of professionalism and ethics. The IIA-CIA-Part1 exam provides candidates with a solid foundation in the principles and practices of internal auditing, and it prepares them to tackle more complex challenges in the remaining parts of the certification program.
NEW QUESTION # 23
Which of the following statements best describes the difference between risk appetite and risk tolerance?
- A. Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance is one approach to risk management.
- B. Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk,
- C. Risk appetite refers to an organization's general level of acceptance, while risk tolerance is a more specific and subordinate concept.
- D. There is no significant difference between the two terms.
Answer: C
NEW QUESTION # 24
Which of the following best describes a purpose for the internal audit charter?
- A. The internal audit charter authorizes access to records, personnel, and physical properties relevant to the performance of audit engagements.
- B. The internal audit charter defines the roles and responsibilities of the chief audit executive, board of directors, and senior management.
- C. The internal audit charter defines the criteria by which the internal audit activity's performance will be evaluated
- D. The internal audit charter authorizes the internal audit activity's reporting structure and clearly defines the roles of each internal auditor.
Answer: A
NEW QUESTION # 25
Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization's residual risk for online customer payments due?
- A. $45, 000
- B. $33, 750
- C. $25, 000
- D. $11, 250
Answer: D
NEW QUESTION # 26
Which of the following are appropriate ways to obtain continuous professional education?
1. Instructing at a local IIA training event.
2. Attending internal audit conferences and seminars.
3. Practicing specialized audit and consulting work.
4. Participating in research projects in internal auditing.
- A. 1 and 3 only
- B. 3 and 4 only
- C. 1, 2, and 4 only
- D. 1 and 2 only
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 27
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.
- A. 2. 3, and 4.
- B. 1,2, and 4.
- C. 1.2, and 3.
- D. 1.3, and 4.
Answer: B
NEW QUESTION # 28
An organization's accounts payable function improved its internal controls significantly after it received an unsatisfactory audit report. When planning a follow-up audit of the function, what level of detection risk should be expected if the audit and sampling procedures used are unchanged from the prior audit?
- A. Detection risk is lower because control risk is lower.
- B. Detection risk is lower because control risk is higher.
- C. Detection risk is higher because control risk is lower.
- D. Detection risk is unchanged although control risk is lower.
Answer: D
NEW QUESTION # 29
A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm's processes related to hazardous materials shouldinclude.
I.Recommending an environmental management system as part of policies and procedures.
II.Verifying the existence of tracking records for these materials from creation to destruction.
III.Using consultants to avoid self-incrimination of the firm in the event illegalities were detected in an environmental audit.
IV.Evaluating the cost provided for in an environmental liability accrual account.
- A. IIonly
- B. I,III,and IVonly
- C. I,II,and IVonly
- D. III and IVonly
Answer: C
NEW QUESTION # 30
When comparing an organization's current performance to that of the prior year, an internal auditor found that:
* Total labor costs had increased.
* More overtime costs had been incurred.
* The total number of workers had increased.
* Net income was 10 percent lower.
Based solely on this information, which of the following is a valid conclusion?
- A. Wage rates increased.
- B. Net income per worker decreased.
- C. Total labor hours increased.
- D. Worker efficiency decreased.
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 31
Which statement is accurate regarding reporting on the quality assurance and improvement program (OAIP) to conform with the International Standards for the Professional Practice of Internal Auditing?
- A. The chief audit executive (CAE) should report all stages of the OAlP's development and key milestones.
- B. The CAE should disclose program details only after both internal and external assessments have been completed.
- C. The CAE should establish the form and content of program communication so that it is in alignment with the internal audit activity charter.
- D. The CAE should report only corrective action plans that meet external assessor or stakeholder requirements.
Answer: B
NEW QUESTION # 32
Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?
- A. Determining the scope.
- B. Evaluating findings.
- C. Testing.
- D. Reviewing internal controls.
Answer: A
NEW QUESTION # 33
Which of the following would provide the best assessment of an organization's ethical climate?
- A. Clarity and consistency of consequences imposed by the board of directors for ethical violations.
- B. Frequency of fraud reported and results of subsequent investigations.
- C. Number of years that directors have been appointed to the board.
- D. Evidence of training provided to the board of directors on ethical issues.
Answer: A
NEW QUESTION # 34
With regard to external assessments of an internal audit activity (IAA), which of the following is the chief audit executive required to discuss with the board?
- A. The simplest way for the external reviewer to join the IAA's organization, and the timeline of the external assessment.
- B. External reviewer conflicts of interest, and the timeline of the external assessment.
- C. The need for an external assessment more frequently than once every five years, and the simplest method for the external reviewer to join the IAA's organization.
- D. External reviewer conflicts of interest, and the need for an external assessment more frequently than once every five years.
Answer: D
Explanation:
Section: Volume D
Explanation/Reference:
NEW QUESTION # 35
During an account receivables audit, an internal auditor found a significant number of input errors resulting in a $500,000 balance understatement. Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?
- A. When?
- B. Who?
- C. Why?
- D. How?
Answer: C
NEW QUESTION # 36
An internal auditor is researching the laws and regulations related to a city's grant program. Which of the following procedures is least relevant to this task?
- A. Reviewing applicable grant agreements.
- B. Making inquiries of the audit committee about the nature of the grants.
- C. Discussing the matter with the city's chief financial officer, legal counsel, or grant administrators.
- D. Reviewing prior-year workpapers and asking officials if there have been any changes.
Answer: B
NEW QUESTION # 37
According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.
- A. 1, 2, and 3
- B. 1, 2, and 4
- C. 1, 3, and 4
- D. 2, 3, and 4
Answer: B
NEW QUESTION # 38
Which two of the following are preventive controls in a check disbursement process?
Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.
Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.
An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.
Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.
- A. 2 and 3.
- B. 2 and 4.
- C. 1 and 3.
- D. 1 and 4.
Answer: B
NEW QUESTION # 39
According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?
- A. An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.
- B. An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.
- C. An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.
- D. An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
Answer: C
NEW QUESTION # 40
The results of an assessment of the adequacy of controls would be considered incomplete or misleading unless the internal auditor considers which of the following?
- A. Number of mitigating controls.
- B. Use of computer-assisted auditing techniques.
- C. Effectiveness of the control environment
- D. IT security controls
Answer: C
NEW QUESTION # 41
If earnings on financial statements for internal use only have been manipulated in the past,an internal auditor is likely to focus on which of the following?
- A. The timing of revenue recognition and the valuation of inventories.
- B. The proper accrual of payables at the end of the interim period.
- C. Whether accounting estimates are reasonable given past actual results.
- D. Whether there have been changes in accounting principles that materially affect the
financial statements.
Answer: A
NEW QUESTION # 42
Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?
- A. Assurance of internal audit objectivity and organizational independence by the board.
- B. Annual review of the audit charter by management.
- C. Appropriate compliance coverage in the annual audit plan.
- D. Appropriate definition of internal audit scope and responsibility in the charter.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 43
According to IIA guidance,which of the following objectives of an assurance engagement for the organization's risk management process is valid?
- A. All risks have been identified and mitigated.
- B. Risks have been accurately analyzed and evaluated.
- C. The board is appropriately addressing intolerable risks.
- D. All controls are both adequate and efficient.
Answer: B
NEW QUESTION # 44
A chief audit executive used risk assessment to prepare the audit work schedule. Which of the following would be the least appropriate reason to modify the schedule?
- A. Change in the relative risk of auditable activities during the year.
- B. Request for postponement since the audit would be too complicated.
- C. Budget constraints or expansions.
- D. Need for coordination of audit activities with the external auditors.
Answer: B
NEW QUESTION # 45
Which of the following is an appropriate consideration by the auditor when preparing an engagement program for a human resource audit?
- A. Include in the audit program certain audit tests requested by audit client.
- B. Defer preparation of the audit program after the field work.
- C. Use standard audit program for HR from previous years.
- D. State the work steps in the form of questions.
Answer: A
NEW QUESTION # 46
Reportable audit findings must be:
I. Documented by facts.
II. Supported by relevant evidence.
III. Agreed to by management of the audited area.
IV. Convincing enough to compel corrective action.
- A. I, II, and IV only
- B. I, II, III, and IV.
- C. II and III only
- D. I and IV only
Answer: A
Explanation:
Section: Volume B
NEW QUESTION # 47
......
The IIA-CIA-Part1 Certification Exam is an important certification for individuals who want to pursue a career in internal auditing. The certification demonstrates the individual's knowledge and skills in internal auditing and provides a competitive advantage in the job market. Candidates are advised to prepare thoroughly for the exam and take advantage of the study materials and training courses offered by the IIA.
LATEST IIA-CIA-Part1 Exam Practice Material: https://actualtests.prep4away.com/IIA-certification/braindumps.IIA-CIA-Part1.ete.file.html