IIA IIA-CIA-Part1 CIA Exam Part One: Essentials of Internal Auditing Online Training
IIA IIA-CIA-Part1 Online Training
The questions for IIA-CIA-Part1 were last updated at Nov 19,2024.
- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Nov 19,2024
Senior management asks the chief audit executive to review the organization’s compliance with recently introduced legislation on international transfer pricing. The review requires an internal auditor who thoroughly understands the legislation and pricing methods. The internal audit activity does not have an auditor with those skills.
Which of the following is the most appropriate course of action?
- A . Outsource the engagement to an external audit firm that has appropriate skills.
- B . Recruit a lawyer with knowledge of the legislation to the audit team and ask the new auditor to perform the engagement.
- C . Decline to perform the engagement, as the internal audit activity does not have the appropriate skill set.
- D . Carry out the engagement using existing internal audit staff to help them gain the appropriate experience.
Which of the following is an example of risk monitoring to ensure a system is performing as intended?
- A . Checking the progress of risk treatment plans
- B . Considering the consequence and likelihood of risks
- C . Documenting the risks and their areas of impact
- D . Communicating to management about risks
Senior management and the board have expressed concerns about the length of engagements and whether their outcome aligns with the organization’s strategies and objectives.
Which of the following actions, if taken by the chief audit executive, could address these concerns?
- A . Communicating to internal audit staff instructions for completing engagements within shorter time periods.
- B . Requesting additional funding from the board to train internal audit staff on time and resource management.
- C . Implementing the use of agile auditing during engagements to meet expectations.
- D . Encouraging internal audit staff to participate in workshops to further develop their understanding of the organization’s strategies.
Which of the following statements best represents the duo professional care that is required of internal auditor’s?
- A . Internal auditors should perform assurance procedures to ensure that all significant risks are identified.
- B . Internal auditor should not perform consulting engagements for operations for which they had previous responsibilities.
- C . Internal auditors should consider the cost of assurance in relation to the potential benefits.
- D . Internal auditors should device internal audit programs to confirm that the results are accurate.
Due to unfavorable economic conditions management decided to postpone new investments for the next year.
Which of the following best describes the risk management strategy used to address this situation?
- A . Risk mitigation
- B . Risk avoidance
- C . Risk reduction
- D . Risk transfer
Which of the following is true about corporate social responsibility (CSR)?
- A . Social and environmental considerations are required parts of an organization’s decision making
- B . The Global Reporting Initiative provides standards on required disclosures of CSR.
- C . CSR activities are overseen and managed by operational management.
- D . Internal auditors can provide assurance on reported sustainability results.
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again.
What concerns should be considered prior to assigning the audit to the same auditor?
- A . Intimidation threats may compromise the auditor’s objectivity due to multiple negative audit reports completed by the auditor.
- B . The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity’s independence.
- C . A negative cognitive bias may be in place that affects the employee’s objectivity due to the recent audits with uncorrected control deficiencies.
- D . The auditor may have formed a cultural bias, as the department under review is in the auditor’s geographic area.
Which of the following scenarios violates The IIA’s standard regarding internal audit independence?
- A . The chief audit executive (CAE) reports on the internal audit activity’s day-to-day tasks and responsibilities to the CEO.
- B . An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.
- C . The CAE regularly meets with the organization’s chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.
- D . The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer
audits in the annual audit plan compared to the previous financial year.
Which of the following concepts is emphasized in the Mission of Internal Audit?
- A . Support of good governance and controls.
- B . Enhancement of organizational value.
- C . Protection of tangible and intangible assets.
- D . Provision of professional advisory and assurance services.
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?
- A . One of the organization’s senior internal auditors owns a side business, though to date, no sales have been made to this business.
- B . The annual internal audit plan includes performance audits of main business processes, but reviews of high-risk development projects were not considered.
- C . The internal audit activity committed to carrying out an audit of documentation on investment hedging, and a hedging expert was contracted to assist with the engagement.
- D . A periodic quality self-assessment of the internal audit activity identified a number of improvement areas with regard to key performance indicators.
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