IIA-CIA-Part1 exam

Which of the following statements is true regarding electronic funds transfer (EFT)?A . EFT is a popular mechanism for improving efficiency, but results in less internal control.B . EFT significantly reduces the risk of fraud by eliminating the need for authorizations.C . EFT eliminates payment delays due mostly to the...

Which of the following would be considered a monitoring activity in organization wide risk management?A . Validate the results of management's self-assessment.B . Perform reviews of personnel.C . Maintain rigorous and comprehensive documentation.D . Obtain authorizations and signatures.View AnswerAnswer: A Explanation: A monitoring activity in organization-wide risk management would include...

Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?A . Review the organization's ethical value structure and reporting procedures.B . Review what the organization considers to be ethical behavior, such as the employee code of conduct.C ....

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...

Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?A . The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,B . The auditor decided not to notify her supervisor...

Identify and mitigate risks to help meet the CSR program objectives.A . 1,2, and 3,B . 1 2, and 4.C . 1, 3, and 4.D . 2, 3, and 4.View AnswerAnswer: B Explanation: According to IIA guidance, the internal audit activity can consult on CSR program design and implementation, serve...

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...

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...

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 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 Explanation: In the context of an initial public offering (IPO), the best description of the risk involved is...