Pass Your IIA IIA-CIA-Part1 Exam with Correct 185 Questions and Answers
Latest [Jan 06, 2022] 2022 Realistic Verified IIA-CIA-Part1 Dumps
Prerequisites of IIA-CIA-Part1 Exam
if you don’t have a bachelor’s degree, you can still take the CIA, which offers you to meet BETWEEN the following standards:
- 3 levels A or higher or comparable (plus two years of internal audit experience) ACCA credentials.
- IIA Global will definitely need to see evidence of your training and learning when you enroll, such as duplicates of your A-level or GCSE certificates/achievements. If you cannot provide this proof later, you will not be able to register.
- 4 years of experience in internal audit (plus a second training and apprenticeship).
Before you can earn CIA classification, you must also have some internal audit experience or a relevant role. You must adhere to the following:
- Level A or comparable and five years of experience.
- A diploma and 2 years of experience.
- Seven years of experience (plus additional training).
NEW QUESTION 88
Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?
- A. Borrowers may not sign all required mortgage loan documentation.
- B. Loan officers may override the lending criteria established by senior management.
- C. Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.
- D. The bank's loan documentation may not meet the government's disclosure requirements.
Answer: B
NEW QUESTION 89
Which of the following is a key performance indicator for an internal audit function?
- A. Implementation of new audit computer software.
- B. Frequency of meetings with the board members.
- C. Audit expenditures compared to financial budgets.
- D. Percent of required continuing education hours completed.
Answer: D
NEW QUESTION 90
Which of the following might alert an internal auditor to the possibility of fraud in a division?
1.The division is not scheduled for an external audit this year.
2.Sales have increased by 10 percent.
3.A
significant portion of management's compensation is directly tied to reported net income of the division.
- A. 1 and 2 only
- B. 1,2,and 3
- C. 1 only
- D. 3 only
Answer: D
NEW QUESTION 91
A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?
- A. The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.
- B. The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.
- C. The CAE should not interfere because there is no evidence that a conflict of interest has occurred.
- D. The CAE should remind the senior auditor of his obligation to be objective and impartial.
Answer: A
NEW QUESTION 92
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. Establish the degree of risk appetite for management to accept.
- B. Set risk indicators and mitigation plans for management to implement.
- C. Coordinate and facilitate risk workshops for management to attend.
- D. Determine the number of significant risks for management to report to the board.
Answer: D
NEW QUESTION 93
Which of the following is not part of the five-attribute approach to developing documentation for an audit observation?
- A. Management response.
- B. Effect.
- C. Recommendation.
- D. Condition.
Answer: A
NEW QUESTION 94
Which of the following would not be a red flag for fraud?
- A. Several recent, large expenditures to a new vendor have not been documented.
- B. A weak control environment has been accepted by management to encourage creativity.
- C. A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.
- D. New employees occasionally fail to meet established project deadlines due to staffing shortages.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 95
Within the internal audit process, which of the following is not a significant advantage of employing a control model?
- A. It validates the findings and recommendations of the internal audit.
- B. It provides guidance on identifying control deficiencies for each internal audit engagement.
- C. It recognizes the need to evaluate both hard and soft controls.
- D. It assists internal auditors in assessing the achievement of management's objectives.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION 96
Click the Exhibit.
Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?
- A. Neither A nor B.
- B. Graph A only
- C. Graph B only
- D. Both A and B.
Answer: D
NEW QUESTION 97
An engagement manager is reviewing the results of sampling work performed by staff internal auditors. Which interim report statement should immediately give the engagement manager cause for concern about the nature and quality of the sampling procedure?
- A. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the true, but unknown population rate is less than 5%, the achieved upper deviation limit is 4.8%.
- B. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, sample size is 80 out of a large population.
- C. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 5%, the sample size is 1580.
- D. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, the confidence expressed is 95%.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION 98
An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:
- A. Ensure that adequate edit and reasonableness checks are built into the automated system.
- B. Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.
- C. Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
- D. Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.
Answer: B
NEW QUESTION 99
According to IIA guidance,which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?
- A. The results are shared with the board and management upon completion,and monitoring of recommended improvements must be reported at least annually.
- B. The results are communicated upon completion to the board and management,but
action plans for recommended improvements do not have to be reported. - C. A report on the results of the assessment is issued upon completion,and progress on implementing recommended improvements must be reported monthly.
- D. The results are reported upon completion in confidence directly to the board,and management is advised only of the recommendations and improvement action plans.
Answer: A
NEW QUESTION 100
In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:
- A. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
- B. The external auditors have indicated some difficulties in obtaining account confirmations.
- C. The audit committee has requested assurance on the treasury department's compliance with a new policy on the use of financial instruments.
- D. Treasury management has not instituted any risk management policies.
Answer: B
NEW QUESTION 101
In which of the following circumstances would an internal auditor not need to search for other signs of fraud?
- A. There are several substantial weaknesses with the internal control structure.
- B. Management institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.
- C. The organization has an unusually high increase in costs.
- D. One of the employees seems to have had a dramatic increase in their standard of living.
Answer: B
NEW QUESTION 102
During a review of a division's operations, an internal auditor notes that sales and customer base are unchanged, while inventory and gross margin have increased significantly. Which of the following audit procedures would be most relevant in substantiating management's assertion that the gross margin increase is due to increased efficiency in manufacturing operations?
- A. Select a sample of finished goods inventory and trace raw materials cost back to purchase prices in order to determine the accuracy of the recorded raw materials price.
- B. Obtain a physical count of inventory.
- C. Take a physical inventory of equipment to determine if there were significant changes.
- D. For a sample of products, compare costs-per-unit this year to those of last year, test cost build-ups, and analyze standard cost variances.
Answer: D
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION 103
A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?
- A. Preparing the financial statements for the company's defined contribution plan.
- B. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.
- C. Performing a pre-implementation review of the company's payroll application.
- D. Providing the COBIT framework as a possible IT management tool.
Answer: A
NEW QUESTION 104
The director of purchasing,a certified internal auditor (CIA),signs a contract to procure a large order from a supplier whose products provide the best price,quality,and performance. A few days after signing the contract,the supplier presents the CIA with $1,000 as a gift. Which statement regarding acceptance of the money is correct?
- A. Because the contract was signed before the money was offered,accepting the money would not violate the IIA Code of Ethics.
- B. Accepting the money would be prohibited only if it were non-customary.
- C. Because the CIA is not acting as an internal auditor,accepting the money would be governed only by the organization's code of conduct.
- D. Accepting the money would violate the IIA Code of Ethics.
Answer: D
NEW QUESTION 105
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
- A. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
- B. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
- C. Irrelevant and argumentative information.
- D. Feedback control data.
Answer: D
NEW QUESTION 106
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.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 2 only
- D. 3 only
Answer: C
NEW QUESTION 107
Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1, 2, and 3
- D. 3 only
Answer: B
NEW QUESTION 108
Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
- A. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
- B. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
- C. The auditor tested samples of transactions to test the cash function's process flows.
- D. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
Answer: A
NEW QUESTION 109
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