IIA-CIA-Part1 V1

A series of incidents over the past year reveals several members of senior management possess a limited understanding of the concept and impact of fraud. Which of the following would be the most effective way to approach this issue?A . The board should ask the internal audit activity to perform...

Which of the following could increase risks to the organization’s control environment?A . Strong board of directors oversight. B. Incentive-based compensation structures. C. Lower than average employee turnover. D. Implementation of a fraud hotline.View AnswerAnswer: B

Which of the following situations is most likely to heighten an internal auditor's professional skepticism regarding potential fraud?A . A procurement manager does not have the expected academic credentials for his position. B. A salesperson frequently complains about the organization's policy on sales commissions. C. The accounts payable supervisor has...

Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large organization?A . The internal assessment results should be discussed once every five years, B. The rating conclusions and the impact from results of the external assessment...

Which of the following best describes the internal audit activity's contribution to the implementation of the risk management framework?A . Internal audit identifies key risk areas during assurance reviews and provides audit findings. B. Internal audit assists with the prioritization of identified risks. C. Internal audit participates in setting the...

While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation. However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their...

An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of...

If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?A . Evaluate the suspected activities to determine whether a forma! investigation is warranted, B. Immediately inform senior management and the board of the suspected fraud. C. Ascertain the level of resources needed...

After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the accounts payable department. Which of the following is the IIA Code of Ethics principle that the auditor upheld?A...

Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?A . Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related,...