[Sep-2021] Verified IIA Exam Dumps with IIA-CIA-Part1 Exam Study Guide
Best Quality IIA IIA-CIA-Part1 Exam Questions DumpsFree Realistic Practice Exams [2021]
NEW QUESTION 40
A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?
- A. Substitution of inferior materials.
- B. Excessive labor charged to the project.
- C. Poor physical protection of materials and equipment.
- D. Failure to complete the project within budget.
Answer: A
Explanation:
Section: Volume B
Explanation
NEW QUESTION 41
Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
1. Company A exhibits a higher standard of ethical behavior than does company B.
2. Company A has established objective criteria by which an employee's actions can be evaluated.
3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
- A. 3 only
- B. 2 and 3 only
- C. 2 only
- D. 1 and 2 only
Answer: C
Explanation:
Section: Volume C
NEW QUESTION 42
According to IIA guidance, which of the following best describes acceptable methods for internal auditors to obtain qualified continuing professional education hours?
- A. Volunteering in relevant professional organizations, formal education, and tutoring college students.
- B. Volunteering in relevant professional organizations, on-line training courses, and tutoring college students.
- C. Formal education, on-line training courses, and tutoring college students.
- D. Volunteering in relevant professional organizations, formal education, and online training courses.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 43
An internal auditor must determine which components of an organization's telecommunications may introduce the greatest risk. Which of the following tasks should the internal auditor complete first?
- A. Ascertain the business purpose of the network.
- B. Map the network software and hardware products into their respective layers.
- C. Review the open systems interconnect network model.
- D. Identify the network operating costs.
Answer: A
NEW QUESTION 44
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 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.
- B. 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.
- C. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
- D. 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.
Answer: D
NEW QUESTION 45
A chief audit executive (CAE) submits internal audit activity (IAA) plans and information about significant interim changes to senior management and the board for review. Which other piece of information should the CAE provide to senior management and the board?
- A. Identification of proposed consultants and support staff for the IA
- B. The CAE's preferred statistical analysis methods and relevant software to be utilized.
- C. The most recent engagement of each member of the audit staff and its duration.
- D. Resource requirements and resource limitations.
Answer: D
NEW QUESTION 46
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 auditorsuggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
- A. Ensure that adequate edit and reasonableness checks are built into the automated system.
- B. 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.
- C. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
- D. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
Answer: B
NEW QUESTION 47
The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?
- A. "Compliant with all domestic and international legal statutes, and certified quality assured for ten years."
- B. "Conforms with the International Standards for the Professional Practice of Internal Auditing."
- C. "Completed with the advance certification of the External Assessors Association for Auditing Review."
- D. "Certified 100% accuracy, per the International Standards of External Assessment."
Answer: B
NEW QUESTION 48
When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?
- A. The exposure to risks following management's risk responses.
- B. The amount of risk that an organization is willing to seek or accept.
- C. The extent and degree of interdependency for identified key risks.
- D. The boundaries established to manage the amount of risk taken.
Answer: A
NEW QUESTION 49
An organization's sales professionals are potentially abusing the use of cellular phones, resulting in an alarming increase in telephone expenses. Which of the following controls is least likely to curb this abuse?
- A. Requiring authorization of the cellular phone bill payment by the manager of the telecommunications department.
- B. Requiring sales professionals to pay monthly cellular phone bills and subsequently submit only business calls for reimbursement using an expense report process.
- C. Developing periodic reports to management that show type, length, and number of calls per sales professional, with related totals and comparisons.
- D. Requiring sales managers to approve monthly bills prior to payment, explain budget variances, and explain increases from previous periods.
Answer: A
NEW QUESTION 50
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 is only issued once a year, limiting its usefulness.
- B. The opinion must include difficult to measure risks such as the risks of management override of controls, and collusion among dishonest personnel.
- C. The opinion is dependent on complex analyses of numerous internal audit engagements carried out over the prior year.
- D. Assessing control effectiveness is complicated by inherent risks.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 51
Click the Exhibit.
Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?
- A. Neither A nor B.
- B. Graph B only
- C. Both A and B.
- D. Graph A only
Answer: C
NEW QUESTION 52
Which of the following best describes the trait that an internal auditor exercises when
considering the extent of work needed to achieve the engagement's objectives?
- A. Proficiency.
- B. Independence.
- C. Objectivity.
- D. Due professional care.
Answer: D
NEW QUESTION 53
Which of the following is a common error made in designing multiple-choice questions in a survey questionnaire?
- A. The alternative response categories for the questions are not mutually exclusive.
- B. Unipolar rather than bipolar labels are used for the response categories.
- C. The question itself uses terms that are very familiar to the respondent.
- D. Likert scaling is used instead of semantic differential scaling.
Answer: A
NEW QUESTION 54
According to IIA guidance,which of the following objectives of an assurance engagement for the organization's risk management process is valid?
- A. All controls are both adequate and efficient.
- B. The board is appropriately addressing intolerable risks.
- C. Risks have been accurately analyzed and evaluated.
- D. All risks have been identified and mitigated.
Answer: C
NEW QUESTION 55
Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?
- A. All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.
- B. Tasks must be assigned to the audit team member who is most qualified to perform them.
- C. Auditors must be given assignments based primarily upon their years of experience.
- D. All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.
Answer: A
NEW QUESTION 56
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