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

Question 31

According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

A. Management principles.

B. Computerized information systems.

C. Internal audit standards, procedures, and techniques.

D. Fundamentals of accounting, economics, and finance.

Correct Answer:C

Question 32

According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?
* 1. Advocating the establishment of a risk management function.
* 2. Identifying and evaluating significant risk exposures during audit engagements.
* 3. Developing a risk response for the organization if there is no chief risk officer.
* 4. Benchmarking risk management activities with other organizations.
* 5. Documenting risk mitigation strategies and techniques.

A. 4 and 5 only.

B. 1.2, and 3 only.

C. 1.2. 4. and 5 only.

D. 2. 3. 4. and 5 only.

Correct Answer:C

Question 33

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
* 1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
* 2. Experience of the engineer in the type of work being considered.
* 3. Compensation or other incentives that the engineer may receive.
* 4. The extent of other ongoing services that the engineer may be performing for the organization.

A. 1 and 4 only

B. 2 and 3 only

C. 3 and 4 only

D. 1, 2, and 4 only

Correct Answer:D

Question 34

An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

A. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

B. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

C. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

D. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

Correct Answer:C

Question 35

Which of the following describes a key characteristic related to effective organizational communication?

A. Comprehensive supervisory and verification procedures.

B. A well-designed system of internal controls.

C. A culture of integrity and transparency.

D. Unique operating environments with varying complexity.

Correct Answer:B

Question 36

Which of the following is the most common way that occupational fraud is detected?

A. Internal audits.

B. Whistleblower hotline.

C. Key controls.

D. External audits.

Correct Answer:B

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