Free IIA IIA-CIA-Part1 Exam Dumps and IIA-CIA-Part1 Exam Questions

Question No: 21

MultipleChoice

Which of the following is a typical characteristic of an organization's risk management framework*?

Options

ARisk tolerance may or may not align with risk appetite depending on whether the assessment is quantitative or qualitative

BRisk is assessed on both an inherent and a residual basis

CThe framework addresses four organizational objective categories strategic, historical, operational, and investment

DExternal risks and internal opportunities are omitted from the risk assessment scope

Question No: 22

MultipleChoice

Which of the following is the best example of an ongoing independent monitoring activity'?

Options

AManagement quality assurance activities

BInternal audit fraud prevention and detection activities

CManagement and supervisory activities

DExternal audit quality assurance activities

Question No: 23

MultipleChoice

An internal auditor was assigned to work in the procurement department for six months to gam m-depth knowledge about the procurement process Which of the following personnel development practices was applied in this situation?

Options

ACosourcing

BInbound rotation

CGuest auditor

DOutbound rotation

Question No: 24

MultipleChoice

According to NA guidance, which of the following corporate sociaf responsibility (CSR) evaluation activities may be performed by

the internal audit activity?

1. Consult on CSR program design and implementation.

2. Serve as an advisor on CSR governance and risk management.

3. Review third parties for contractual compliance with CSR terms.

4. Identify and mitigate risks to help meet the CSR program objectives.

Options

A1,2, and 3,

B1 2, and 4.

C1, 3, and 4.

D2, 3, and 4.

Question No: 25

MultipleChoice

Why is a code of ethics for the internal audit profession necessary?

Options

AIt ensures that all members of the profession possess the same level of competence.

BIt provides auditors with protection from lawsuits.

CIt guides internal auditors in their service to others.

DIt requires auditors to exhibit loyalty to their organizations.

Question No: 26

MultipleChoice

Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

Options

AOrganizational status and objectivity.

BSupervision of the chief audit executive (CAE) by senior management.

COrganizational knowledge and skills.

DCAE certification.

Question No: 27

MultipleChoice

An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IA

Options

AWhich of the following also should be included in the charter?

AThe purpose of the IAA.

BThe IAA's right to have unrestricted access to functions, records, personnel, and physical property.

CA detailed audit plan or program for the year.

DThe job specifications and descriptions of the internal audit staff.

Question No: 28

MultipleChoice

Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?

1. Periodically report about the accounting standards followed by the organization.

2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.

3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.

4. Maintain open and effective communications with the audit committee.

Options

A1 and 2 only

B3 and 4 only

C1, 3, and 4 only

D2, 3, and 4 only

Question No: 29

MultipleChoice

A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

Options

AThe CAE should not interfere because there is no evidence that a conflict of interest has occurred.

BThe CAE should remind the senior auditor of his obligation to be objective and impartial.

CThe CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.

DThe CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.

Question No: 30

MultipleChoice

The chief audit executive (CAE) of a mid-sized pharmaceutical organization has operational responsibility for the regulatory compliance function. The audit committee requests an assessment of regulatory compliance. According to IIA guidance, which of the following is the CAE's best course of action?

Options

AHave a proficient internal audit staff member perform the assessment and disclose the impairment in the audit report and to the board.

BHave a regulatory compliance staff member perform a self-assessment, to be reviewed by a proficient internal auditor.

CHave a proficient internal audit staff member perform the audit and report the results of the assessment directly to senior management and the board.

DContract with a third-party entity or external auditor to complete the assessment and report the results to senior management and the board.

Free IIA-CIA-Part1 Exam Dumps