[Dec 19, 2023] Download Free IIA IIA-CIA-Part1 Real Exam Questions [Q26-Q49]

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[Dec 19, 2023] Download Free IIA IIA-CIA-Part1 Real Exam Questions

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IIA offers a variety of study materials, including textbooks, online courses, and practice exams, to help candidates prepare for the IIA-CIA-Part1 exam. These materials cover the key concepts and principles that are tested on the exam and help candidates identify areas where they need to focus their study efforts.

NEW QUESTION 26
The chief commodity trader for a large energy company learns from a friend that a competitor will likely fail its upcoming regulatory audit and will be forced to temporarily decrease production. If the information is true, the trader has short-term opportunities to make trades that will financially benefit the trader’s company and will lead to a substantial increase in the trader’s performance bonus. However, if the information is not true, making the trades will significantly increase the company’s risk of being caught in a long position. From an ethical perspective, which of the following would be the most appropriate course of action for the trader to take?

Make the trade because the company and the trader will both benefit.

Have another trader on staff make the trade in order to avoid a conflict of interest.

Disclose the information to the risk oversight committee but proceed with the trade to capitalize on the opportunity.

Defer the decision to management and risk the loss of the trading opportunity.

NEW QUESTION 27
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of thefollowing controls would best mitigate the risk of employees receiving kickbacks from suppliers?

The periodic rotation of procurement officers’ assignments to supplier accounts.

A pre-award financial capacity analysis of suppliers.

An automated computer report, organized by supplier, of any invoices for the same amount.

Periodic inventories of kiln-dried wood at the organization’s warehouse.

NEW QUESTION 28
A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with CSR.

The board is responsible for ensuring that CSR objectives are established, risks are managed, performance is measured, and activities are appropriately monitored and reported.

Management is responsible for ensuring that the organization’s CSR principles are communicated, understood, and integrated into decision-making processes.

Generally, CSR activities are limited to the management of the organization; thus, employees do not have a responsibility for ensuring the success of CSR objectives.

NEW QUESTION 29
Which of the following represents the correct order of the risk management process?

Resource allocation, risk management metrics, risk assessment, post-mortem analysis, effective communication.

Risk management metrics, resource allocation, risk assessment, effective communication, post-mortem analysis.

Risk assessment, resource allocation, risk governance and reporting, post-mortem analysis, feedback.

Resource allocation, risk monitoring, risk assessment, feedback, post-mortem analysis.

NEW QUESTION 30
After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the accounts payable department.
Which of the following is the IIA Code of Ethics principle that the auditor upheld?

Independence.

Confidentiality.

Objectivity.

Competency

NEW QUESTION 31
According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?

Discussions with the chief audit executive.

A listing of employee profiles and certifications.

Inquiry of external auditors.

Validation by human resources.

NEW QUESTION 32
An Internal auditor accepted a role as an engagement supervisor on a highly specialized and technical engagement for which she did not have the expertise. Which of the following fundamental principles of The IIA’s Code of Ethics did she violate?

Objectivity.

Confidentiality.

Competency.

NEW QUESTION 33
Which of the following statements best describes the competency requirement for an auditor regarding fraud risks encountered in an engagement execution?

The auditor should be able to have comparable competencies of a person whose primary responsibility is detecting and investigating fraud.

The auditor must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.

The auditor is not expected to have any competency requirement regarding fraud since the role of investigating and detecting fraud belongs to other functions in the organization.

The auditor must be able to have an appreciation of the fundamentals of fraud detection and investigation techniques.

NEW QUESTION 34
An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.
Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.
Which course of action should the CAE follow?

Report the communication to the organization’s general counsel.

Report the instruction to the chairperson of the audit committee.

Inform the head of the organization that the investigation will continue as planned.

Inform the external auditors of the findings and the mandate to stop investigating.

NEW QUESTION 35
Which of the following risk assessment tools would best facilitate the matching of controls to risks?

Control matrix.

Internal control questionnaire.

Control flowchart.

Program evaluation and review technique (PERT) analysis.

NEW QUESTION 36
To ensure that due professional care has been taken during an audit engagement, an internal auditor should always:

Ensure that all financial information related to the engagement is included in the audit plan and examined for irregularities.

Document all audit tests completely.

Consider the possibility of noncompliance or irregularities at all times during an engagement.

Notify the audit committee of any noncompliance or irregularity discovered during an engagement.

NEW QUESTION 37
During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:

Exclude the relative’s information from the audited work and proceed with the audit engagement.

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

Immediately withdraw from the audit engagement.

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

NEW QUESTION 38
COBIT is primarily designed to:

Define auditing standards for information technology auditors.

Satisfy information technology regulatory requirements.

Provide guidance to govern information technology activities.

Assist technology professionals in interpreting technological specifications.

NEW QUESTION 39
Which of the following are core responsibilities to be included in the internal audit charter?
1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
2. Determine the adequacy and effectiveness of the organization’s systems of internal accounting and operating controls.
3. Participate in the planning and performance of audits of potential acquisitions with the organization’s outside accountants and other members of the corporate staff.
4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

1 and 2.

1 and 4.

2 and 3.

2 and 4.

NEW QUESTION 40
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?

The proper accrual of payables at the end of the interim period.

The timing of revenue recognition and the valuation of inventories.

Whether accounting estimates are reasonable given past actual results.

Whether there have been changes in accounting principles that materially affect the financial statements.

NEW QUESTION 41
According to IIA guidance, which of the following is required of an internal audit activity?

The internal audit activity should refrain from conducting an assurance engagement for which it lacks the necessary competencies or skills

The chief audit executive must decline a consulting engagement or obtain competent advice and assistance if internal auditors lack the necessary competencies or skills

The audit committee should ensure that the internal audit activity continuously improves its knowledge and skills in order to fulfill its responsibilities

In today’s business climate which is dominated by technology and big data, it is imperative that each staff internal auditor has detailed knowledge about IT risks and technology-based audit techniques

NEW QUESTION 42
According to the Standards, which of the following statements best describes the required content of the chief audit executive’s (CAE) report to senior management and the board on the internal audit activity (IAA)?

The CAE must report on significant risk exposures, control issues, and governance issues.

The CAE must report on policies, procedures, and best practices of the IAA.

The CAE must report on quality assurance techniques, statistical analysis methods, and other analytical processes used.

The CAE must report on auditors’ continuing education activities, staffing changes, and any outsourcing to external parties.

NEW QUESTION 43
Which of the following approaches will internal audit utilize when developing a set of performance standards to measure an organization’s risk management process against?

Key principles approach

Process elements approach

Holistic approach

Maturity model approach

NEW QUESTION 44
Which of the following is true regarding risk analysis?

Impact and likelihood should be assessed together.

Impact and likelihood should be given equal consideration by the internal auditor.

Impact and likelihood should be measured using quantitative methods.

Impact and likelihood should be used to determine risk response.

NEW QUESTION 45
Which of the following describes two duties that should not be performed by the same person?

Posting cash receipts and cash payments to the general ledger.

Posting bad debt write-offs and reconciling the accounts payable subsidiary ledger.

Distributing payroll checks and approving sales returns for credit.

Recording cash receipts and preparing bank reconciliations.

NEW QUESTION 46
Which of the following is least likely to be considered material in an audit of a medium-sized organization?

A $1,000 overstatement of the accrued-vacation payable account.

A violation of a government statute.

Fraud resulting in a cash loss to the organization.

An underpayment to the employee pension fund.

NEW QUESTION 47
According to IIA guidance, which of the following statements regarding the internal audit charter is true?

Senior management should approve the charter before it is submitted to the board.

The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.

The charter should define the consulting services that the internal audit activity is permitted to perform.

The CEO periodically should assess whether the terms of the charter continue to be adequate.

NEW QUESTION 48
Which of the following is correct regarding the implementation of a quality assurance and improvement program for the internal audit function?

The board has the primary responsibility for implementation of a robust quality assurance and improvement program for internal audit.

An internal audit function that is fully complying with internal assessment of quality can confidently claim it is performing in conformity with the International Professional Practices Framework.

The chief audit executive can establish a formal quality assurance and improvement program that is led by an audit manager.

A quality assurance and improvement program is applicable depending on the size and complexity of the audit function.

NEW QUESTION 49
Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

Governance,risk,and control.

Performance management.

Business acumen.

Internal audit delivery.

The Essentials of Internal Auditing certification is offered by the Institute of Internal Auditors (IIA), which is the leading international professional association for internal auditors. The IIA is dedicated to providing certification, education, research, and guidance to internal auditors and other professionals involved in internal control and governance.

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