IIA-CIA-Part1 IIA Exam Questions and Free Practice Test

Question 13

Which of the following combinations of conditions is most likely a red flag for fraud?

A. The practice of surprise audits and the implementation of an employee support program.

B. Hiring an employee with a prior fraud conviction and yearly management review.

C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Correct Answer:C

Question 14

Which of the following would not be considered part of preliminary survey of an engagement area?

A. Interviews with individuals affected by the entity.

B. Functional walk through test.

C. Analytical reviews.

D. Sampling scope.

Correct Answer:D

Question 15

When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?

A. The amount of risk that an organization is willing to seek or accept.

B. The extent and degree of interdependency for identified key risks.

C. The boundaries established to manage the amount of risk taken.

D. The exposure to risks following management's risk responses.

Correct Answer:D

Question 16

While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE's decision?

A. Objectivity.

B. Proficiency.

C. Independence.

D. Due professional care.

Correct Answer:D

Question 17

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

A. Preventive controls.

B. Detective controls.

C. Soft controls.

D. Directive controls.

Correct Answer:A

Question 18

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?

A. Bank statements.

B. Customer confirmation letters.

C. Copies of sales invoices.

D. Copies of deposit slips.

Correct Answer:D

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