Jan 11, 2024 Detailed New IIA-CIA-Part1 Exam Questions for Concept Clearance
IIA-CIA-Part1 Exam Preparation Material with New IIA-CIA-Part1 Dumps Questions.
NEW QUESTION # 93
According to MA guidance, which of the following statements is true regarding an effective governance process?
- A. It encourages strict segregation of the risk management and internal control processes.
- B. It relies on effective risk management when establishing the organization's risk appetite.
- C. It relies on the board to devise ways to communicate the effectiveness of internal controls.
- D. It stipulates that risk needs to be considered when making strategic decisions.
Answer: B
NEW QUESTION # 94
Which of the following describes a control weakness?
- A. Purchasing procedures are well designed and are followed unless otherwise directed by the purchasing supervisor.
- B. The purchasing agent invests in a publicly traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.
- C. Pre-numbered blank purchase orders are secured within the purchasing department.
- D. Normal operational purchases fall in the range from $500 to $1, 000 with two signatures required for purchases over $1, 000.
Answer: A
NEW QUESTION # 95
In an audit engagement, a group of internal auditors used an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps in the computer software, and then developed test data. Over the course of 24 months, they submitted test transactions on a regular basis but did not find any differences between payroll processing and integrated test facility results. Based on the data, what can the auditors conclude?
- A. The computer application and its control procedures correctly processed payroll over the 24-month period.
- B. Payments to employees during the 24-month period were all correct.
- C. Employees are properly submitting their hours to payroll.
- D. The computer software is flawed.
Answer: A
NEW QUESTION # 96
A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?
- A. Data integrity tests.
- B. Balancing control activities.
- C. Check digits.
- D. Logic test.
Answer: D
NEW QUESTION # 97
Which of the following is a primary responsibility of senior management with respect to ethical violations?
- A. Senior management assesses the effectiveness of the organization's ethical programs.
- B. Senior management reviews major ethical policies in the organization for compliance
- C. Senior management promotes an ethical culture in the organization.
- D. Senior management provides oversight for the organization's ethical climate.
Answer: A
NEW QUESTION # 98
During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement supervisor, who disagrees with his suspicions and directs him to continue with the engagement as planned. Given the circumstance, what is the most appropriate action for the junior auditor to take?
- A. Document in the workpapers and expand testing.
- B. Report the suspected fraud to law enforcement officials and seek financial restitution.
- C. Escalate the concern to the chief audit executive.
- D. Continue with the engagement as planned, per the more senior auditor.
Answer: C
NEW QUESTION # 99
According to the IIA Code of Ethics, the deliberate omission of relevant information from an audit report would violate which principle?
- A. Honesty.
- B. Competency.
- C. Responsibility.
- D. Integrity.
Answer: D
NEW QUESTION # 100
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
- A. A strategic objective-setting process.
- B. A risk assessment process.
- C. An information and communication process.
- D. A monitoring process.
Answer: B
NEW QUESTION # 101
Which of the following scenarios violates The IIA's standard regarding internal audit independence?
- A. The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer audits in the annual audit plan compared to the previous financial year.
- B. The chief audit executive (CAE) reports on the internal audit activity's day-to-day tasks and responsibilities to the CEO.
- C. The CAE regularly meets with the organization's chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.
- D. An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.
Answer: C
NEW QUESTION # 102
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. II.
- B. I
- C. IV.
- D. III.
Answer: A
NEW QUESTION # 103
Which of the following is considered a violation of The IIA's Code of Ethics?
- A. An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.
- B. An auditor reports material deficiencies, despite the fact that management is already aware of the defects.
- C. An auditor conveys public information about an organization's financial condition.
- D. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.
Answer: D
NEW QUESTION # 104
In order to effectively handle conflict between audit team members, an audit team leader should:
- A. Ask one of the team members to resolve the issue by being more conciliatory.
- B. Be assertive and keep the team members focused on a resolution.
- C. Transfer one of the team members to another assignment.
- D. Avoid addressing the conflict until the leader is sure that there is a problem.
Answer: B
NEW QUESTION # 105
An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results,and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?
- A. Effect section.
- B. Criteria section.
- C. Condition section.
- D. Cause section.
Answer: A
NEW QUESTION # 106
A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed. In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:
- A. Include a review of environmental issues in some internal audit engagements.
- B. Periodically carry out a quality assessment of the environmental audit activity.
- C. Discuss with the environmental auditors the results of their reviews.
- D. Review the recommendations in all environmental audit reports.
Answer: B
NEW QUESTION # 107
According to IIA guidance, which of the following is the best example of a system application control?
- A. A program change management control.
- B. A physical security control over a data center.
- C. An input control over data integrity.
- D. A system development life cycle control.
Answer: C
NEW QUESTION # 108
Which of the following is the best example of a computer forensic audit activity?
- A. An internal auditor recovered emails of an employee who was suspected of fraudulent activities
- B. An internal auditor tried to circumvent the logical access controls of the purchasing system.
- C. An internal auditor used analytical software to trace all disbursements processed on weekends.
- D. An internal auditor compared vendor addresses to employee home addresses.
Answer: A
NEW QUESTION # 109
Noncompliance with which of the following would cause a control deficiency related to privacy protection practices?
I.An organization's internal privacy policies.
II.
Financial accounting standards.
III.
Privacy laws and regulations.
IV.
The Standards.
- A. I, II, III, and IV.
- B. I and III only.
- C. II, III, and IV only.
- D. II and IV only.
Answer: B
NEW QUESTION # 110
What is the primary purpose of a fishbone diagram?
- A. To plan and control complex projects, such as internal audits.
- B. To represent the frequencies of adverse conditions in a given process.
- C. To identify the possible causes of adverse conditions.
- D. To depict the areas of responsibility for departments in an organization.
Answer: C
NEW QUESTION # 111
During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:
- A. Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.
- B. Immediately withdraw from the audit engagement.
- C. Exclude the relative's information from the audited work and proceed with the audit engagement.
- D. Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.
Answer: D
NEW QUESTION # 112
Which of the following statements describes a control failure that is not directly attributable to a customer billing application?
End users have raised a number of concerns regarding data integrity.
An untested program change is transferred from the test environment to production.
Purchase history does not reconcile with accounts receivable for some customers.
End user security is inadvertently granted to an unauthorized individual by management.
- A. 1 and 4.
- B. 1 and 3.
- C. 2 and 4.
- D. 2 and 3.
Answer: C
NEW QUESTION # 113
Which of the following actions by the internal audit activity requires disclosure to the board of nonconformance with the Standards?
- A. The internal audit activity did not complete an external assessment within the last seven years
- B. The internal audit activity performed an engagement with limited scope due to lack of knowledge
- C. An internal auditor was assigned to an engagement m an area where she previously worked more than 10 years ago
- D. The internal audit activity failed to consider risk when conducting a review of a department
Answer: A
NEW QUESTION # 114
An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?
- A. Process mapping.
- B. Interviewing.
- C. Distributing questionnaires.
- D. Monitoring.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 115
Which of the following would not be a factor for senior management to consider when determining the internal audit activity's role in an organization's risk management process?
- A. The maturity level of risk management practices in the organization.
- B. The extent to which the internal audit activity is outsourced.
- C. The nature of the business and the environment in which the organization operates.
- D. The competency of the internal auditors in risk management.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 116
An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?
- A. Credit memos issued after year end for goods shipped before year end.
- B. The results of a complete physical inventory taken at year end.
- C. An unusual number of customer complaints.
- D. Evidence of returned goods in the shipping and receiving area.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 117
An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?
- A. The invoices have high reliability.
- B. The invoices have low reliability.
- C. The invoices have zero reliability.
- D. The invoices have medium reliability.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION # 118
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What is IIA-CIA-Part1 Exam
The revised CIA Part 1 exam is well aligned with the IIA's International Specialized Practice Framework (IPPF) and also includes 6 areas that cover the fundamentals of internal accounting; autonomy and neutrality; efficacy and appropriate specialized treatment; quality assurance and renewal programs; governance, threat tracking and even control; and even the threat of fraud. The first part examines the understanding, skills and also the capabilities of the perspectives associated with the International Specifications for Household Accounting Specialized Technique, in particular the characteristic standards (1000, 1100, 1200 and 1300 series), as well as the criteria performance 2100.
Aspects of the IPPF are included such as the purpose of internal auditing and the basics of expert internal auditing technique. The program offers a higher rating with the IIA performance standards. The test covers the distinctions between obtaining and seeking advice from compromises. The review is about the appropriate disclosure of consistency with respect to non-conformance to specifications. The most important area is “Threat Governance, Management and Control”, which represents 35% of the audit. Part of the exam requires candidates to demonstrate a basic understanding of the concepts; another section requires candidates to demonstrate mastery of their knowledge, skills, and abilities.
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