IIA-CIA-Part1 V1

According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?A . The organizational culture rewards critical and objective thinking. B. The quality of work performed by the internal audit activity is periodically reviewed, C. The organization establishes effective governing body oversight, D....

Which of the following statements best describes the difference between risk appetite and risk tolerance?A . Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk, B. Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance...

Which of the following factors is most important for internal auditors to consider when prioritizing fraud risks?A . The organization’s code of conduct. B. The organization’s competition. C. The organization’s code of ethics. D. The organization’s cultureView AnswerAnswer: D

Which of the following best describes the risk contained in an initial public offering for a new stock?A . Residual risk. B. Net risk. C. Inherent risk. D. Underlying risk.View AnswerAnswer: C

Which of the following procedures will best help an internal auditor assess operating effectiveness of fraud prevention and detection controls?A . Benchmarking best practices B. Testing, C. Mapping, D. InterviewingView AnswerAnswer: B

Applying ISO 31000, which of the following is part of the external context for risk management?A . Risk treatment method based on risk evaluation. B. Organizational culture, objectives, and processes. C. The regulatory and competitive environment D. The method of determining the risk level.View AnswerAnswer: C

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?A . Proceed with the audit engagement, but do not include the relative's information. B. Have the chief audit executive...

In which of the following ways could stakeholders be engaged in corporate social responsibility efforts?A . Investigation of health and safety incidents. B. Auditing of controls and management systems. C. Communication of disclosures and external reporting, D. Involvement in focus groups and complaint managementView AnswerAnswer: C

In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?A . Involve board members in hiring activities and request advice. B. Require all internal audit staff to complete...

The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional-level developers, internal...