Updated IIA IIA-CIA-Part1 Dumps – Check Free IIA-CIA-Part1 Exam Dumps (2023) [Q53-Q77]

IIA-CIA-Part1 IIA

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Updated IIA IIA-CIA-Part1 Dumps – Check Free IIA-CIA-Part1 Exam Dumps (2023) [Q53-Q77]

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Updated IIA IIA-CIA-Part1 Dumps – Check Free IIA-CIA-Part1 Exam Dumps (2023)

Updated IIA-CIA-Part1 exam with IIA Real Exam Questions

QUESTION 53
Which of the following statements is correct with regard to risk management?

The board’s responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.

The chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.

The total process of risk management, which includes a related system of internal control, is the responsibility of the board.

The finance director is responsible for the overall implementation of the risk management process.

Section: Volume C

QUESTION 54
The primary reason that a chief audit executive (CAE) reviews external audit management
letters and management response is to:

Select areas to emphasize in future internal audit engagements.

Check the effectiveness of external audit resources used.

Ensure that comments in the letter are supported by evidence.

Verify that there has been no duplication of internal audit work.

QUESTION 55
After several years in the engineering department, an engineer was transferred to the internal audit department. One month later, the new auditor was assigned to an assurance engagement for the engineering department. When the auditor’s former engineering supervisor suggested a change in the sample selection method, the auditor consulted with the audit supervisor. They determined that the suggested method would not be as representative and that the original selection method should be used. In this situation, the auditor:

Maintained an independent mental attitude and is therefore objective.

Has subordinated professional judgment, and objectivity is therefore impaired.

Does not have objectivity since the auditor recently transferred from the engineering department.

Does not have independent organizational status since the auditor recently transferred from the engineering department.

QUESTION 56
Which of the following should be incorporated in a risk management policy?
I. Boundaries and limit structures.
II. Requirements for reporting risk.
III. Risk authorities.

I and II only

I and III only

II and III only

I, II, and III.

Section: Volume A

QUESTION 57
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?

Involve board members in hiring activities and request advice.

Require all internal audit staff to complete the same training course on a general audit subject,

Require senior auditors to obtain a professional certification.

Provide a competency assessment of the internal audit staff.

QUESTION 58
Which of the following best demonstrates organizational independence of the internal audit activity?

The chief audit executive reports directly to the board

Internal auditors may not disclose personal data of the audit client

Internal auditors may not accept gifts from management of the area under review

Internal auditors must observe the law and make required disclosures

QUESTION 59
There is a growing perception that employees generally evade their responsibilities. What impact will an internal auditor most likely see during an engagement?

Supervisors are likely to reduce their level of supervision and increase span of control.

Employees are likely to be supervised closely and given little freedom.

Peer employees are likely to trust one another, but distrust management.

Employees are likely to join forces to accomplish their duties as teams.

QUESTION 60
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
I. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
II. Compensation systems are not part of an organization’s control system and should not be reported as such.
III. An audit of an organization’s compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

I only

II only

III only

II and III only

QUESTION 61
Which of the following would be the best example of a monitoring control for a chain of restaurants?

Each restaurant manager reconciles the cash received with the food orders recorded on the computer.

All food orders must be entered through the computer, and there is segregation of duties between the food servers and the cooks.

Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.

Proof of bank deposit is transmitted to corporate headquarters on a daily basis.

QUESTION 62
According to the International Professional Practices Framework, internal auditors should possess which of the following competencies?
I. Proficiency in applying internal auditing standards, procedures, and techniques.
II. Proficiency in accounting principles and techniques.
III. An understanding of management principles.
IV. An understanding of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods.

I only

II only

I and III only

I, III, and IV only

Section: Volume A

QUESTION 63
COBIT is primarily designed to:

Define auditing standards for information technology auditors.

Satisfy information technology regulatory requirements.

Provide guidance to govern information technology activities.

Assist technology professionals in interpreting technological specifications.

QUESTION 64
When developing the organization’s first risk universe,which of the following would the chief audit executive be least likely to consider?

The amount of risk that an organization is willing to seek or accept.

The extent and degree of interdependency for identified key risks.

The boundaries established to manage the amount of risk taken.

The exposure to risks following management’s risk responses.

QUESTION 65
During an assurance engagement the internal audit team discovers that employees performing a control do not understand the principles behind it. Before the engagement concludes, at management’s request the audit team facilitates several formal training sessions to help explain those principles to the employees. Which of the following best describes the engagement provided by the internal audit activity in this scenario?

Assurance services

Blended services

Consulting services

Prohibited services

QUESTION 66
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of thefollowing controls would best mitigate the risk of employees receiving kickbacks from suppliers?

The periodic rotation of procurement officers’ assignments to supplier accounts.

A pre-award financial capacity analysis of suppliers.

An automated computer report, organized by supplier, of any invoices for the same amount.

Periodic inventories of kiln-dried wood at the organization’s warehouse.

QUESTION 67
When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?

The external auditors have requested assistance for their upcoming annual audit.

A new accounts payable system is currently undergoing testing by the information technology department.

Management has requested an investigation of possible lapping in receivables.

The existing accounts payable system has not been audited over the past year.

QUESTION 68
Which of the following conditions is the most likely indicator of fraud?

Commissions are paid based on verified increases to sales.

Departmental reports are consistently issued in an untimely manner.

A manager regularly assumes subordinates’ duties.

Lower earnings occur during the industry’s down cycle.

Section: Volume E

QUESTION 69
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?

Expertise in identifying information technology risks.

A thorough understanding of organizational governance principles.

Proficiency in creating and utilizing process maps.

Knowledge of key management and business principles.

QUESTION 70
Which of the following is most accurate concerning corporate social responsibility?

A moral agent in an organization makes decisions that are based on the rules and regulations of the organization as they apply to human resources decisions

The utilitarian approaching deciding on ethical dilemmas is concerned with choosing the simplest solution that will apply to the most people

Ethics are not defined by laws but they are not a matter of free choice ethics are based on standards of conduct derived from shared principles and values

The individualism approach to ethical decision making is focused on implementing a customized long-term outcome that is most beneficial for the entire organization

QUESTION 71
Which of the following statements best demonstrates application of due professional care during an assurance engagement?

The engagement detected irregularities and noncompliance instances.

The engagement supervisor had no significant comments in the supervisory review.

The audit procedures were systematically planned, executed, and documented.

The engagement objectives were designed to assist the engagement client.

QUESTION 72
Which of the following factors related to an organization’s performance management system would not contribute to the organization’s success?

Performance management is linked to competence and knowledge management.

Subordinates and superiors have shared responsibility for the performance management process.

Staff members own the performance management process, thereby ensuring implementation and accountability.

Performance management is integrated into other organizational processes and human resource processes.

QUESTION 73
Management should be included in the development of the audit plan in order to:

Provide assurance that past audit recommendations have been properly implemented.

Select the audit tests that will be used for each engagement.

Verify that the highest risks are included in the risk-based audit plan.

Guarantee access to the organization’s sites and records for audit work.

Section: Volume B

QUESTION 74
According to ISO 31000, which of the following statements is correct?

The board is responsible for setting the organizational attitude through tone at the top,

The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities,

The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.

The framework is designed to be effective for organizations no matter how small.

QUESTION 75
Which of the following tools would provide the most useful depiction of a process flow that spans multiple departments in an organization?

A vertical flowchart of each department, showing inputs at the top and outputs at the bottom.

A narrative, with a section dedicated to the process of each department.

A combination of a flowchart, which shows the process, and a narrative, which indicates the related department.

A horizontal flowchart, with each department identified across the top and the process flow below.

Section: Volume D

QUESTION 76
Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
1.Company A exhibits a higher standard of ethical behavior than does company B.
2.Company A has established objective criteria by which an employee’s actions can be evaluated.
3.The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

2only

3only

1 and 2only

2 and 3only

QUESTION 77
An organization has a policy requiring two signatures on all checks written for amounts in excess of $10, 000.
When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.

The auditor located two checks for $9, 000 each that contained one authorized signature.

The $10, 000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10, 000.

The director of accounting was not one of the authorized signers.

There were several instances in which successively numbered checks for amounts between $5, 000 and
$10, 000 were made payable to the same vendor.

Section: Volume A
Explanation

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