Actualtests offers free demo for IIA-CIA-Part1 exam. "Certified Internal Auditor - Part 1, The Internal Audit Activitys Role in Governance, Risk, and Control", also known as IIA-CIA-Part1 exam, is a IIA Certification. This set of posts, Passing the IIA IIA-CIA-Part1 exam, will help you answer those questions. The IIA-CIA-Part1 Questions & Answers covers all the knowledge points of the real exam. 100% real IIA IIA-CIA-Part1 exams and revised by experts!
Q181. In order to effectively handle conflict between audit team members, an audit team leader should:
A. Avoid addressing the conflict until the leader is sure that there is a problem.
B. Be assertive and keep the team members focused on a resolution.
C. Ask one of the team members to resolve the issue by being more conciliatory.
D. Transfer one of the team members to another assignment.
Answer: B
Q182. Which of the following actions should an internal auditor take to exercise due professional care?
1.
Consider the probability of significant noncompliance in each audit engagement.
2.
Weigh the cost of assurance against the benefits.
3.
Perform assurance procedures with sufficient care to ensure that all risks are identified.
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1,2,and 3
Answer: A
Topic 6, Volume F
Q183. Which of the following is a role of the board of directors in the governance process?
A. Conduct periodic assessments of the organization's governance systems.
B. Obtain assurance concerning the effectiveness of the organization's governance systems.
C. Implement an effective system of internal controls to support the organization's governance systems.
D. Review and approve operational goals and objectives.
Answer: B
Q184. An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?
1.
They are most effective when using a combination of current and prior engagement findings to draw conclusions.
2.
They typically are based on defined procedures such as those found in an accounts payable reconciliation process.
3.
They are discrete and not normally shared with senior management or the board.
4.
They can rely on evidence taken from the work of other assurance activities across the organization.
A. 1 and 2.
B. 1 and 3.
C. 2 and 3.
D. 3 and 4.
Answer: C
Q185. hich of the following is most likely to function as a directive control?
A. Security dogs.
B. Alert employees.
C. Insurance claims.
D. Cycle counts.
Answer: B
Q186. A chief audit executive (CAE) is planning to issue an annual report concluding on the overall effectiveness of the organization's internal control system. According to the Standards, which of the following is likely the most significant challenge facing the CAE when creating the report?
A. The opinion must include difficult to measure risks such as the risks of management override of controls,and collusion among dishonest personnel.
B. The opinion is dependent on complex analyses of numerous internal audit engagements carried out over the prior year.
C. The opinion is only issued once a year,limiting its usefulness.
D. Assessing control effectiveness is complicated by inherent risks.
Answer: B
Q187. A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?
A. 60 percent.
B. 52 percent.
C. 48 percent.
D. 30 percent.
Answer: B
Q188. According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1.
The complexity of the work required.
2.
The needs and expectations of the client.
3.
The potential value of the engagement compared to the effort.
4.
Information regarding assumptions and procedures to be employed.
A. 1 and 4 only
B. 2 and 3 only
C. 1,2,and 3 only
D. 1,2,3,and 4
Answer: C
Q189. Which of the following processes should be included in a benchmarking activity?
I. Identify key measures.
II. Collect data on performances and practices.
III.
Identify opportunities for improvement.
A.
IIonly
B.
I and IIIonly
C.
II and IIIonly
D.
I,II,and III.
Answer: D
171. The chief audit executive (CAE) routinely provides activity reports to the board during quarterly board meetings. Senior management has asked to review the CAE's board presentation before each board meeting so that any issues or questions can be discussed beforehand. The CAE should:
A. Provide the activity reports to senior management as requested and discuss any issues that may require action to be taken.
B. Not provide activity reports to senior management because such matters are the sole province of the board.
C. Disclose only those matters in the activity reports that pertain to expenditures and financial budgets of the internal audit activity.
D. Provide information to senior management that pertains only to completed audit engagements and observations available in published engagement final communications.
Answer: A
Q190. Which of the following would be the best example of a monitoring control for a chain of
restaurants?
A. Each restaurant manager reconciles the cash received with the food orders recorded on the computer.
B. All food orders must be entered through the computer,and there is segregation of duties between the food servers and the cooks.
C. Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.
D. Proof of bank deposit is transmitted to corporate headquarters on a daily basis.
Answer: C
Q191. Why is the concept of residual risk important?
A. Because residual risk is difficult to measure.
B. Because residual risk is all of the risk that remains after controls are established.
C. Because the cost-benefit analysis supporting control design is part of the measure of residual risk.
D. Because the risk that remains after control design and implementation needs to be acceptable to senior management.
Answer: D
Q192. The chief audit executive is revising policies relating to independence and objectivity of the internal audit activity. Which of the following would be a part of the revised policies document?
A. Any auditor that received high-value gifts from an audit client must report it to their supervisor.
B. Any auditor that received gifts of low-value promotional items from an audit client must report it to their supervisor.
C. An auditor does not need to complete an annual conflict of interest form unless the auditor's
independence status has changed.
D. An auditor may provide consulting services relating to operations for which they had previous
responsibilities.
Answer: D
Q193. Which of the following is not an advantage of face-to-face interviews over electronic surveys?
A. The response rate is typically higher.
B. Interviewers can increase a respondent's comprehension of questions.
C. Survey designers can use a wider variety of question types.
D. They are less expensive to distribute and compile data.
Answer: D
Q194. An internal auditor is performing analytical reviews as part of an audit of a supermarket's
merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?
A. Higher inventory turnover.
B. Higher operating margin.
C. Lower obsolete stock disposal.
D. Lower sales volume.
Answer: D
Q195. In a manufacturing organization, all sales prices are determined centrally and are electronically sent to the distribution centers to update their sales price tables. Any pricing deviations must be approved by central headquarters. To determine how this process is functioning, an internal auditor should:
A. Document the flow of sales price information,and determine how the table is accessed and updated.
B. Develop a flowchart of the sales order process to determine how orders are taken and priced.
C. Identify who approves the shipment of goods and how the goods are priced.
D. Obtain a copy of the existing flowchart for the computer program to determine how price data are accessed.
Answer: A