2022 IIA-CIA-Part1 Question Bank: Free PDF Download Recently Updated Questions
IIA-CIA-Part1 Certification Exam Dumps with 185 Practice Test Questions
What is IIA-CIA-Part1 Exam
The revised CIA Part 1 exam is well aligned with the IIA’s International Specialized Practice Framework (IPPF) and also includes 6 areas that cover the fundamentals of internal accounting; autonomy and neutrality; efficacy and appropriate specialized treatment; quality assurance and renewal programs; governance, threat tracking and even control; and even the threat of fraud. The first part examines the understanding, skills and also the capabilities of the perspectives associated with the International Specifications for Household Accounting Specialized Technique, in particular the characteristic standards (1000, 1100, 1200 and 1300 series), as well as the criteria performance 2100.
Aspects of the IPPF are included such as the purpose of internal auditing and the basics of expert internal auditing technique. The program offers a higher rating with the IIA performance standards. The test covers the distinctions between obtaining and seeking advice from compromises. The review is about the appropriate disclosure of consistency with respect to non-conformance to specifications. The most important area is “Threat Governance, Management and Control”, which represents 35% of the audit. Part of the exam requires candidates to demonstrate a basic understanding of the concepts; another section requires candidates to demonstrate mastery of their knowledge, skills, and abilities.
NEW QUESTION 23
An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?
- A. The invoices have medium reliability.
- B. The invoices have low reliability.
- C. The invoices have high reliability.
- D. The invoices have zero reliability.
Answer: A
NEW QUESTION 24
If earnings on financial statements for internal use only have been manipulated in the past, an internal auditor is likely to focus on which of the following?
- A. Whether there have been changes in accounting principles that materially affect the financial statements.
- B. The proper accrual of payables at the end of the interim period.
- C. Whether accounting estimates are reasonable given past actual results.
- D. The timing of revenue recognition and the valuation of inventories.
Answer: D
NEW QUESTION 25
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors should take a leading role in investigating all fraud-related cases.
- B. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
- C. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
- D. Internal auditors are responsible for ensuring that fraud does not occur.
Answer: C
NEW QUESTION 26
Which of the following actions would compromise an internal auditor's objectivity?
- A. Auditing an activity for which the auditor had responsibility two years ago.
- B. Preparing bank reconciliations.
- C. Reviewing procedures before they are implemented.
- D. Receiving a promotional pen from a supply available to all employees.
Answer: B
NEW QUESTION 27
Which of the following is a role of the board of directors in the governance process?
- A. Obtain assurance concerning the effectiveness of the organization's governance systems.
- B. Review and approve operational goals and objectives.
- C. Implement an effective system of internal controls to support the organization's governance systems.
- D. Conduct periodic assessments of the organization's governance systems.
Answer: A
NEW QUESTION 28
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
- A. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
- B. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
- C. Irrelevant and argumentative information.
- D. Feedback control data.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 29
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
- A. CAE certification.
- B. Organizational status and objectivity.
- C. Supervision of the chief audit executive (CAE) by senior management.
- D. Organizational knowledge and skills.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION 30
Which of the following would most likley be considered a red flag for fraud?
- A. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
- B. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
- C. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
- D. An organization lacks a whistleblower hotline for reporting suspicious activity.
Answer: A
NEW QUESTION 31
Which of the following would provide the most reliable information on the risk associated with an auditable activity?
- A. Past audit findings and instances of management failures.
- B. Consequences and economic predictability of loss.
- C. Management assessment and corroboration by the internal audit activity.
- D. Event scenarios with regression analysis.
Answer: C
NEW QUESTION 32
In which of the following situations would fishbone diagrams be most useful?
- A. The team is too small for brainstorming to be effective.
- B. Team members cannot effectively communicate with each other.
- C. The problem is complicated and the root cause is unknown.
- D. The team consists of experts who can resolve problems without much difficulty.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION 33
An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?
- A. The results of a complete physical inventory taken at year end.
- B. Evidence of returned goods in the shipping and receiving area.
- C. Credit memos issued after year end for goods shipped before year end.
- D. An unusual number of customer complaints.
Answer: D
Explanation:
Section: Volume D
Explanation
NEW QUESTION 34
According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?
- A. Controlling access to engagement records, including access by senior management.
- B. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
- C. Developing retention requirements for engagement records that are consistent with organizational guidelines.
- D. Rating each engagement record to assess its relevance and accessibility for the organization's board.
Answer: D
Explanation:
Section: Volume F
NEW QUESTION 35
An external quality assurance review which was authorized by the chief audit executive (CAE) indicated significant findings from the Standards. To whom should the final results of the quality assurance review be reported?
- A. The CAE with copies to the board and senior management.
- B. Confidentially to the CAE only
- C. To the senior management with a copy to the board.
- D. To the board with copies to the external auditor or regulatory oversight body.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 36
Which of the following enhances the independence of the internal audit activity?
- A. The chief audit executive (CAE) approves the annual internal audit plan.
- B. The CAE administratively reports to the board.
- C. The chief executive officer approves the internal audit charter.
- D. The audit committee approves the CAE's annual salary increase.
Answer: D
NEW QUESTION 37
The internal audit activity's role in the risk assessment and management processes of an organization is determined by the:
- A. External auditors.
- B. Risk management department.
- C. Chief audit executive.
- D. Board of directors.
Answer: D
NEW QUESTION 38
Which of the following would be the best example of a monitoring control for a chain of restaurants?
- A. Proof of bank deposit is transmitted to corporate headquarters on a daily basis.
- B. Each restaurant manager reconciles the cash received with the food orders recorded on the computer.
- C. All food orders must be entered through the computer, and there is segregation of duties between the food servers and the cooks.
- D. Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.
Answer: D
Explanation:
Section: Volume C
NEW QUESTION 39
A code of business conduct provides?
- A. A passive method of fraud deterrence.
- B. An alternative to "tone at the top" programs.
- C. A program to anonymously report irregularities to authorities.
- D. A fraud avoidance plan that does not explicitly describe punishments for violations.
Answer: A
NEW QUESTION 40
Internal auditors can benefit from a strong relationship with the external auditors because external auditors can:
- A. Increase the effectiveness of internal control sampling techniques.
- B. Provide internal auditors with an independent and knowledgeable viewpoint.
- C. Concur with the internal auditors' reports and thus improve the quality of assurance provided to management.
- D. Assist the internal auditor by providing information obtained from similar audits with other clients.
Answer: B
NEW QUESTION 41
According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to
- A. An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
- B. An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.
- C. An auditor in charge needed to have testing completed by the end of the month, but was behind schedule. He identified a junior auditor to conduct the work for him on a complex area of the organization.
- D. perform a proper assessment.
Answer: D
NEW QUESTION 42
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 IAA. Which of the following also should be included in the charter?
- A. The job specifications and descriptions of the internal audit staff.
- B. A detailed audit plan or program for the year.
- C. The purpose of the IA
- D. The IAA's right to have unrestricted access to functions,records,personnel,and physical property.
Answer: D
NEW QUESTION 43
Which of the following roles, if undertaken by an internal auditor, would have the greatest potential for conflict with the Standards regarding objectivity?
- A. External audit liaison.
- B. Ethics advocate.
- C. IT system designer.
- D. Product development team consultant.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 44
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