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
A subsidiary of the organization was preparing for an initial public offering (IPO). Af the request of the audit committee, the chief audit executive (CAE) and all senior audit staff were actively involved in the process by helping collect and validate financial data, conducting assessments, and participating in meetings with IPO advisors. Six months later, it became obvious that the IPO had to be canceled. Newly appointed audit committee members requested an assurance engagement that v/ould assess the IPO preparation process.
Which of the following would be the best course of action for the chief audit executive (CAE) to take?
- A . The decision to involve auditors in the IPO was made by former audit committee members; therefore, the CAE is not responsible and can proceed with the new assignment.
- B . The CAE should reject the assignment, as such engagements are beyond the scope of auditors who are usually not familiar with root cause analysis methodology.
- C . The engagement should be undertaken by audit assistants and other junior staff members who were not involved in the IPO process.
- D . The CAE should disclose objectivity limitations to the audit committee and suggest alternatives, such as outsourcing the engagement.
Which of the following would be the most suitable internal control framework for an organization to adopt?
- A . A framework that specifies common best practices for an organization to evaluate and benchmark.
- B . A framework that specifies correct and incorrect business methodologies.
- C . A framework with precise specifications for how controls and processes should be employed.
- D . A framework that offers step-by-step guidance for remedial action for all organization types.
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity’s independence?
- A . Description of internal audit activity’s responsibilities
- B . Definition of internal auditing
- C . Statement of internal audit activity’s authority
- D . Description of internal audit activity’s reporting structure
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
- A . An independent third party has assessed the organization’s system of internal controls to be adequate and effective.
- B . The chief audit executive reports both functionally and administratively to the CEO.
- C . The internal audit charter is drafted properly and approved by the appropriate parties.
- D . The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
According to HA guidance, which of the following would best support the internal auditor’s conclusion that the organization’s risk management processes are effective?
- A . The organization has identified all applicable operational and financial risks.
- B . The organization has documented its strategic and business objectives.
- C . The organization has selected risk responses aligned with its risk appetite.
- D . The organization has documented risk information pertinent to its business.
The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program.
Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?
- A . The internal audit charter does not identify which audit services are outsourced
- B . The internal audit charter has not been reviewed by the legal department
- C . The internal audit charter has not been approved by the board within the past year
- D . The internal audit charter does not describe the authority of the internal audit activity
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company’s engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering department.
What is the most appropriate course of action for the CAE to take?
- A . Include the engineering department on the audit plan, use the available internal audit resources to conduct the review, and exclude procedures that cannot be adequately assessed.
- B . Advise management to accept the assessed risk until the internal auditors are able to review the area adequately.
- C . Recruit internal auditors with the required competencies and wait until they are employed before including this audit on the internal audit plan.
- D . Proceed with a review of the engineering department but supplement the internal audit team with nonauditors from an external engineering company who have the required skills to assist
Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?
- A . Internal auditors ensure that the work program is appropriately designed in order to identify all of the risks surrounding the payroll process.
- B . Internal auditors determine whether the policies, procedures, and practices of the payroll department are operating in accordance with relevant laws.
- C . Internal auditors verify whether the board of directors has implemented effective internal controls over the processes used by the payroll department.
- D . Internal auditors ask the organization’s risk manager to determine whether the degree of work planned is sufficient to determine whether payroll payments were complete and accurate.
Which of the following principles of The IIA’s Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?
- A . Confidentiality.
- B . Objectivity.
- C . Integrity.
- D . Competency.
Which of the following practices is generally most effective to protect internal audit objectivity?
- A . Ensuring regular documentation of auditor skills and experience in the workpapers.
- B . Basing performance evaluations heavily on customer satisfaction surveys.
- C . Prohibiting auditors from accepting gifts from audit clients or potential clients.
- D . Ensuring that auditors have a balance of both operational and internal audit responsibilities.
Latest IIA-CIA-Part1 Dumps Valid Version with 566 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund
