Ucertify 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!
Q76. Fraud is most frequently detected by:
A. Following up on tips from employees or citizens.
B. Following up on analytical review of high-risk areas.
C. Performing periodic reconciliations over cash and other assets.
D. Performing unannounced audits or reviews of programs or departments.
Answer: A
Q77. According to IIA guidance, which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?
A. A report on the results of the assessment is issued upon completion,and progress on implementing recommended improvements must be reported monthly.
B. The results are reported upon completion in confidence directly to the board,and management is advised only of the recommendations and improvement action plans.
C. The results are shared with the board and management upon completion,and monitoring of recommended improvements must be reported at least annually.
D. The results are communicated upon completion to the board and management,but action plans for recommended improvements do not have to be reported.
Answer: C
303. Feedback on engagements from audit clients, annual benchmarking of the internal audit activity's (IAA's) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?
A. Completing internal assessments.
B. Determining the level of residual risk.
C. Identifying conflicts of interest.
D. Developing control processes.
Answer: A
Q78. The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?
A. Internal control checklist.
B. Procurement employee survey.
C. Cross-functional flow chart.
D. Segregation of duties matrix.
Answer: C
Q79. Which of the following characteristics could indicate high risk?
A. Management decisions are made by a committee of mid to higher level management personnel.
B. The company is not in a rapidly growing industry.
C. The company's profitability is lower than the industry norm.
D. Management turnover has been very low.
Answer: C
Q80. According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?
A. Relevant risk information is captured and communicated in a periodic manner to management.
B. Risk management processes are monitored through an annual assessment.
C. Risk responses align with the organization's risk appetite.
D. Strategic risks with low residual values are continuously monitored.
Answer: C
Q81. Which of the following is a common type of payroll fraud?
A. Unauthorized overtime.
B. Fictitious employees.
C. Unearned bonuses or commissions.
D. Skimming.
Answer: B
Q82. According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?
A. A former employee knowledgeable of the IAA who resigned three years earlier from the organization.
B. A competent employee of an independent external organization that provides co-sourcing services to the IAA.
C. An employee in an affiliated organization who has never worked directly with the IAA.
D. An employee in the parent organization who has not had any previous contact with the IAA.
Answer: A
Q83. What is the primary purpose of a fishbone diagram?
A. To depict the areas of responsibility for departments in an organization.
B. To plan and control complex projects,such as internal audits.
C. To represent the frequencies of adverse conditions in a given process.
D. To identify the possible causes of adverse conditions.
Answer: D
Q84. An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system.
Which function, if previously performed by the auditor, would represent a conflict of interest?
A. Monitoring the allowance for doubtful accounts.
B. Writing procedures for the handling of duplicate payments.
C. Signing timekeeping cards for subordinates.
D. Reviewing shipping documents for accuracy.
Answer: B
Q85. While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor's findings most likely indicate?
A. Employee collusion with customer organizations.
B. Improper asset valuation.
C. Inventory theft.
D. Fictitious revenues.
Answer: D
Q86. In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:
A. Availability of records and data.
B. Potential impact of risks.
C. Capabilities of audit personnel.
D. Time required to complete the engagement.
Answer: B
Q87. Within the internal audit process, which of the following is not a significant advantage of employing a control model?
A. It provides guidance on identifying control deficiencies for each internal audit engagement.
B. It recognizes the need to evaluate both hard and soft controls.
C. It assists internal auditors in assessing the achievement of management's objectives.
D. It validates the findings and recommendations of the internal audit.
Answer: D
Q88. Which of the following is not an appropriate activity for internal auditors to perform?
A. Recommend management seek a consulting firm to advise on outsourcing.
B. Highlight matters that require management's attention.
C. Implement solutions for specific organizational problems.
D. Accumulate data,obtain varying views,and report information to senior management.
Answer: C
Q89. In which of the following circumstances would an internal auditor not need to search for other signs of fraud?
A. The organization has an unusually high increase in costs.
B. There are several substantial weaknesses with the internal control structure.
C. Management institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.
D. One of the employees seems to have had a dramatic increase in their standard of living.
Answer: C
Q90. Which two of the following are preventive controls in a check disbursement process?
1.
Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.
2.
Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.
3.
An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.
4.
Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.
A. 1 and 3.
B. 1 and 4.
C. 2 and 3.
D. 2 and 4.
Answer: D