IIA-CIA-Part1 CIA Part 1: Internal Audit Fundamentals Practice Questions
Prepare for IIA-CIA-Part1 with more than an answer.
- Exam fee
- $460 USD
- Level
- Professional
- Valid for
- No expiration for partial completion
- 1
The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performed.
• Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with the company's inventory records.
• A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading and company records. No errors were detected.
• The audit staff observed engineering personnel during the handling of hazardous materials. No company policy violations were noted.The reconciliation of waste drums to the inventory records provides evidence that:
Show answer details
Correct answer: D
D
- 2
Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation.
What should the internal audit activity do?
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Correct answer: B
B
- 3
Which of the following internal auditor attributes are affected by a conflict of interest?
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Correct answer: B
B
- 4
Which of the following is an appropriate consideration by the auditor when preparing an engagement program for a human resource audit?
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Correct answer: C
C
- 5
Which of the following are typical management control activities?
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Correct answer: C
C
- 6
Internal auditors exercise judgment about the type and amount of information to be collected. The primary purpose of this judgment is to:
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Correct answer: D
D
- 7
An internal auditor is using a computer-assisted audit technique (CAAT) to identify potential duplicate payments within a full year of accounts payable data. The auditor has designed the following workflow to flag transactions. Which step in this process is most likely to produce a high number of false positives, requiring significant unnecessary manual follow-up?
flowchart TD A[Extract Full AP Data] --> B{Filter by Identical Vendor ID}; B --> C{Filter by Identical Invoice Number}; C --> D{Filter by Identical Invoice Date}; D --> E[Flag as Potential Duplicate];Show answer details
Correct answer: D
Relying on an identical invoice date (Step D) as a primary matching criterion is flawed. It is common for a single vendor to issue multiple, legitimate invoices on the same day, or for a company to process payments for multiple invoices from the same vendor on the same date. A much stronger criterion would be matching on 'Identical Invoice Amount'. Using the date will flag many distinct, valid transactions as potential duplicates, leading to a high rate of false positives.
- 8
A senior manager asks the chief audit executive (CAE) to explain why statistical sampling is the best method to use in conducting an internal audit. Which advantages should the CAE point to in order to justify the internal audit activity's (IAA) use of statistical sampling?
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Correct answer: C
C
- 9
Risk within an internal audit engagement is defined as the:
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Correct answer: B
B
- 10
Using the internal audit department to coordinate regulatory examiners' efforts is beneficial to the organization because internal auditors can:
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Correct answer: D
D
