Testking 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!
Q46. 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.
Answer: B
Q47. An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
A. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
B. Require a supervisor in the department,who has the ability to change the table,to compare the changes to a signed management authorization.
C. Ensure that adequate edit and reasonableness checks are built into the automated system.
D. Require a manager,who is independent of the system and who cannot change the table,to authorize and sign-off on any employee pay changes.
Answer: D
Q48. An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?
A. A log from the last year that includes dates of travel,conference titles,and conference objectives,all of which correspond with employee names and costs per trip.
B. A log that includes titles of conferences that all employees were invited to attend in the last year,along with the dates of those conferences and average costs per traveler.
C. A log of conferences titles,dates of travel for each employee,and a detailed summary of conference objectives and how they relate to the organization's mission needs.
D. A log of employee travel requests,which include the title of each conference,the conference objectives,anticipated dates of travel,and estimated costs.
Answer: A
Q49. 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. $11,250
B. $25,000
C. $33,750
D. $45,000
Answer: A
Q50. After completing a net present value (NPV) calculation on a proposed project, an analyst explores the change in NPV with changes in the interest rate. This additional analysis is referred to as:
A. Decision analysis.
B. Simula-tion.
C. Sensitivity analysis.
D. Variance analysis.
Answer: C
Q51. This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.
Which of the following would be the best course of action for the CAE to take?
A. Continue with the engagement in order to meet the regulatory deadline,but highlight areas in the final report that might need to be revised in the future.
B. Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.
C. Delay the engagement and inform the board of the situation,asking them to provide acceptable alternatives for completing the engagement.
D. Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.
Answer: C
Q52. Which of the following is a valid statement about the use of visual observations during an audit engagement?
1.
Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.
2.
Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement.
3.
Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
4.
Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization’s senior management.
A. 1 and 2only
B. 1 and 4only
C. 2 and 3only
D. 3 and 4only
Answer: A
Q53. The primary reason that a bank would maintain a separate compliance function is to:
A. Better manage perceived high risks.
B. Strengthen controls over the bank's investments.
C. Ensure the independence of line and senior management.
D. Better respond to shareholder expectations.
Answer: A
Q54. An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?
A. Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
B. Determine the requisite knowledge needed,and obtain the proper training for auditors,even if the training will significantly push back the project's timeframe as outlined by the audit committee.
C. Notify the audit committee of the problem,and assign the most competent auditors on staff to perform the audit engagement.
D. Employ the skills of a financial derivatives expert to consult on the project,and supplement the consulting with a local seminar on financial derivatives.
Answer: D
Q55. According to IIA guidance, which of the following statements is true?
A. Risks in IT processes are best mitigated by individual controls.
B. The overall focus of the framework is on significant controls in all critical IT applications.
C. IT risks and related controls are operational and best identified using a bottom-up approach.
D. Control process risks are found at multiple layers of the IT environment.
Answer: D
Q56. Which of the following is not an appropriate role of the internal audit activity in governance activities?
A. Support the board in enterprise-wide risk assessment.
B. Ensure the timely implementation of audit recommendations.
C. Monitor compliance with the organization's ethics policies.
D. Discuss areas of significant risk.
Answer: B
Q57. Which source of audit evidence would provide the least value in flowcharting an organization's
purchasing process?
A. An interview with the purchasing supervisor.
B. A review of a sample of purchase orders which were completed during the last month.
C. A review of the purchasing policies and procedures manual.
D. A walk-through of the process with a member of the purchasing staff.
Answer: B
Q58. 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.
Answer: B
Q59. The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
1.
Average client customer satisfaction score for a given year.
2.
Client survey comments on how to improve the IAA.
3.
Auditor interviews once an audit has been completed.
4.
Percentage of audits completed within 90 days.
A. 1 and 2.
B. 1 and 3.
C. 2 and 3.
D. 3 and 4.
Answer: C
Q60. It would be appropriate for an internal audit activity to use consultants with expertise in health-care benefits when the internal audit activity is:
I. Conducting an audit of the organization's estimate of its liability for post retirement benefits, which include health care benefits.
II. Comparing the cost of the organization's health care program with that of other programs offered in the industry.
III.
Training its staff to conduct an audit of health care costs in a major division of the organization.
A.
Ionly
B.
I and IIIonly
C.
II and IIIonly
D.
I,II,and III.
Answer: D