IIA-CIA-Part1 exam

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?A . Periodic reinforcement of the internal audit...

Which of the following would be the most effective fraud prevention control?A . Email alert sent to management for checks issued over $100,000. B. Installation of a video surveillance system in a warehouse prone to inventory loss. C. New hire training to explain fraud and employee misconduct. D. Daily report...

Which of the following best illustrates the application of due professional care during an audit of the procurement department?A . The internal auditor began checking purchase requisitions for proper authorizations. He stopped when he discovered an instance of noncompfiance. and he concluded the controls were ineffective. B. The internal auditor...

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

A multinational organization has asked the internal audit activity to assist in setting up the organization’s risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?A . Coordinate and facilitate risk...

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

An internal auditor discovered fraud while performing an audit of an organization’s procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?A . Enhanced capability to prevent frauds from occurring. B. Greater assurance that procurement frauds will be detected in a timely...

Which of the following most accurately describes the role of the board when it comes to organizational governance?A . Responsibility for outcome of the process. B. Responsibility to be involved in management of the organization. C. Responsibility to determine who is accountable for outcomes. D. Responsibility to identify risks in...

An internal auditor is updating the risk register for risks identified during a recent organizational risk assessment. According to the Standards, which of the following would the auditor include in the risk register?A . Management’s acceptance of inadequate controls for cybersecurity risk. B. Discussions with senior management relating to a...

Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?A . Evaluate how the organization manages fraud risk. B. Establish procedures for improving risk management processes. C. Ensure risk responses are aligned with industry standards. D. Verify...