IIA-CIA-Part1 Pre-Exam Practice Tests | (Updated 185 Questions)
Valid IIA-CIA-Part1 Exam Q&A PDF - One Year Free Update
NEW QUESTION 90
One of an organization's quality objectives is to reduce the amount of rework needed in the production cycle.
Which of the following controls would be the least effective in achieving this objective?
- A. Machinery is routinely maintained to avoid production malfunctions.
- B. Daily reconciliations are performed between finished goods and the number of rejects.
- C. Employees are rewarded for suggestions that lead to quality improvements.
- D. Quality inspectors are assigned to identify any defects in the finished product.
Answer: B
NEW QUESTION 91
A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?
- A. Senior management.
- B. Common stockholders.
- C. Outside consultants.
- D. Employees.
Answer: B
NEW QUESTION 92
When reviewing management reports to the board of directors, the internal audit activity should:
- A. Maintain supporting documentation for the management reports.
- B. Tie all financial numbers in the reports to the general ledger.
- C. Compare to prior-period reports for consistency.
- D. Evaluate the process used to prepare the management reports.
Answer: D
NEW QUESTION 93
A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?
- A. She may participate for training purposes, to build her knowledge of the IAA.
- B. She may participate, but only after she has completed one year with the IAA.
- C. She may participate, but she must be supervised by the auditor in charge.
- D. She may participate, because she did not previously work in the Human Resources Department.
Answer: D
NEW QUESTION 94
Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?
I.Areas where personal information is collected,used,stored,and disseminated. II.Inherent risk.
III.Privacy practices of competitors.
IV.Third-party recipients of information.
- A. I,II,and IVonly
- B. I,II,III,and IV.
- C. I and IIonly
- D. IIIonly
Answer: A
NEW QUESTION 95
Which of the following best contributes to the effectiveness of the internal audit activity in an organization?
- A. Regular review of the audit charter by management.
- B. Appropriate compliance coverage in the annual audit plan.
- C. Assurance of internal audit objectivity by the board.
- D. Appropriate terms of internal audit scope and responsibility in the charter.
Answer: D
NEW QUESTION 96
-- --
Which of the following controls within a spreadsheet would address the risk of logic errors?
The spreadsheet contains formulas that foot and cross-foot data.
The spreadsheet is locked to protect cell formulas from being inadvertently
changed.
Spreadsheets are included in nightly backup processes.
Check-in and check-out software is used to manage version control.
- A. 1 and 2 only.
- B. 2 and 4 only.
- C. 1 and 3 only.
- D. 3 and 4 only.
Answer: A
NEW QUESTION 97
A manufacturing organization discovers that the waste water released has failed to meet permitted limits.
Which control function will be least effective in correcting the issue?
- A. Establishing a preventive maintenance program for the pretreatment system.
- B. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.
- C. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.
- D. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 98
Which source of audit evidence would provide the least value in flowcharting an organization's purchasing process?
- A. A walk-through of the process with a member of the purchasing staff.
- B. An interview with the purchasing supervisor.
- C. A review of the purchasing policies and procedures manual.
- D. A review of a sample of purchase orders which were completed during the last month.
Answer: D
NEW QUESTION 99
An internal auditor has been engaged to assess fraud risks associated with a new financial software system.
Which competency would best help the auditor complete the task?
- A. Knowledge of key management and business principles.
- B. A thorough understanding of organizational governance principles.
- C. Proficiency in creating and utilizing process maps.
- D. Expertise in identifying information technology risks.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 100
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts.
Which of the following would most likely be the reason for the high volume of complaints?
- A. Check tampering by an employee.
- B. Poor controls in the invoice approval processes.
- C. Submission of fraudulent expense reports.
- D. An ineffective customer service department.
Answer: A
NEW QUESTION 101
Overall audit efficiency is enhanced between the internal and external audit functions when:
- A. External audit scope is reduced based on the internal audit department's activities.
- B. The internal audit department reviews functions or departments prior to the external audit.
- C. Internal audit coverage is reduced to avoid potential conflicts of interest.
- D. Audits of the same department are conducted at different times.
Answer: A
NEW QUESTION 102
Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?
- A. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.
- B. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
- C. CAATs are more objective than the traditional methods in interpreting the results.
- D. CAATs can process the results faster and thus give a higher level of assurance.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 103
Which of the following types of fraud includes embezzlement?
- A. Bribery.
- B. Fraudulent statements.
- C. Corruption.
- D. Misappropriation of assets.
Answer: D
NEW QUESTION 104
A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store's assistant manager is responsible for checking the server for downloads and running the program that updates the store's price file at the authorized price update time. In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:
- A. Decrease the risk that customers will be undercharged consistently for sales items.
- B. Increase the risk that item prices will sometimes be inaccurate.
- C. Decrease the risk that item prices will sometimes be inaccurate.
- D. Increase the risk that customers will be undercharged consistently for sales items.
Answer: B
NEW QUESTION 105
Some of an organization's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:
- A. Appropriate segregation of duties for batch approval.
- B. Reconciliation of paychecks to the bank account.
- C. Validation of hash totals.
- D. Edit controls on the payroll file.
Answer: C
NEW QUESTION 106
Which of the following is a weakness of observation as audit evidence?
- A. It cannot be used to test the occurrence assertion.
- B. It cannot be relied upon because the evidence is not persuasive.
- C. It cannot be used to test the existence assertion.
- D. It cannot be used to test the completeness assertion.
Answer: D
NEW QUESTION 107
Management has asked the chief audit executive (CAE) to provide assurance on the organization's automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?
- A. Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.
- B. Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.
- C. Accept the assignment and use control self-assessment to complete the project.
- D. Accept the assignment if the engagement is included in the current audit plan,but inform senior management that the current audit staff does not have the knowledge and skills required.
Answer: B
NEW QUESTION 108
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