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IIA-CIA-Part1 exam is an important certification for individuals who are looking to pursue a career in internal auditing. Essentials of Internal Auditing certification is recognized globally and is highly valued by employers. Essentials of Internal Auditing certification demonstrates that an individual has the knowledge and skills required to perform internal auditing tasks effectively.
IIA-CIA-Part1 (Essentials of Internal Auditing) certification exam is a critical certification for internal auditors worldwide. It is designed to test the knowledge and understanding of candidates in the areas of internal auditing, including governance, risk management, ethics, and internal control. Essentials of Internal Auditing certification is highly respected in the industry and is recognized globally. Candidates who pass the exam can enhance their professional credibility and demonstrate their expertise in the field.
NEW QUESTION # 108
After being terminated due to downsizing, an internal auditor finds a different job with anorganization in the same industry. Which of the following actions would violate the IIA Code of Ethics?
- A. In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.
- B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
- C. To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.
- D. In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.
Answer: B
NEW QUESTION # 109
Which of the following policies promotes internal audit objectivity?
- A. The chief audit executive (CAE) reports functionally to the CEO
- B. The CAF's appointment is determined by the CEO
- C. The CAE reports administratively to the chief operating officer
- D. The CAE s compensation is approved by the chief financial officer
Answer: B
NEW QUESTION # 110
Which domain of the COBIT framework addresses the maintenance and change management of existing systems to ensure alignment with business needs and objectives?
- A. Acquire and implement.
- B. Plan and organize.
- C. Monitor and evaluate.
- D. Deliver and support.
Answer: A
NEW QUESTION # 111
While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization. Which of the following actions are most appropriate for the auditor to take?
- A. Consult with an immediate supervisor and notify the organization's audit committee.
- B. Give the prize to a friend or family member and notitfy the organization's audit committee.
- C. Consult with an immediate supervisor and review the organization's ethics policy.
- D. Give the prize to a friend or family member and review the organization's ethics policy.
Answer: C
NEW QUESTION # 112
To enhance the independence of both the internal and external audit functions, audit committees should be composed of:
- A. Only external members of the board of directors or other similar oversight committees.
- B. A rotating subcommittee of the board of directors or its equivalent.
- C. A combination of external members of the board of directors and company officers.
- D. Members from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.
Answer: A
Explanation:
Section: Volume B
Explanation
NEW QUESTION # 113
Which statement most accurately describes how criteria are established for use by internal auditors in determining whether goals and objectives have been accomplished?
- A. Internal auditors should use professional standards or government regulations to establish the criteria.
- B. Management is responsible for establishing the criteria.
- C. Appropriate accounting or auditing standards, including international standards, should be used as the criteria.
- D. The industry in which a company operates establishes criteria for each member company through benchmarks and best practices for that industry.
Answer: B
NEW QUESTION # 114
Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?
- A. Annual review of the audit charter by management.
- B. Appropriate definition of internal audit scope and responsibility in the charter.
- C. Assurance of internal audit objectivity and organizational independence by the board.
- D. Appropriate compliance coverage in the annual audit plan.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 115
Reviewing prior audit reports and supporting workpapers before an engagement starts
enables an internal auditor to do which of the following?
1.To understand better the activity and processes that will be audited.
2.To identify the audit procedures that will be used during the engagement.
3.To ensure that matters of greatest vulnerability will be addressed.
4.To use the information obtained as evidence in the current engagement.
- A. 1 and 4only
- B. 2,3,and 4only
- C. 4only
- D. 1 and 3only
Answer: D
NEW QUESTION # 116
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:
- A. Gather factual data on several different topics.
- B. Obtain information based on the person's own perspective.
- C. Determine agreement or disagreement with a stated viewpoint.
- D. Obtain specific answers and maximize efficiency.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 117
Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?
- A. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.
- B. Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.
- C. Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.
- D. Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.
Answer: A
NEW QUESTION # 118
Recently an organization's internal audit activity discovered ghost employees who receive payments Senior management decides to strengthen the internal control measures to address this Which of the following is considered an effective control to mitigate payments to ghost employees?
- A. The staff salary payment list is reviewed by the head of payroll and endorsed by the head of human resources
- B. New staff requisition forms are authorized by operational management and acknowledged by the head of human resources
- C. Staff transfers are reviewed by the recruiting manager and approved by the head of human resources
- D. Staff salary payments and accounting records are approved by the head of accounting and acknowledged by the head of human resources
Answer: A
NEW QUESTION # 119
Which of the following statements best illustrates why internal auditors assess soft controls?
- A. Assessing soft controls provides more objective information than assessing hard controls.
- B. Assessing soft controls can help internal auditors in undertaking root-cause analysis.
- C. Assessing soft controls, as opposed to hard controls, makes it easier to evaluate operating effectiveness.
- D. Assessing soft controls are an effective method of assessing risk related to personnel.
Answer: D
NEW QUESTION # 120
Which of the following would not be a factor for senior management to consider when determining the internal audit activity's role in an organization's risk management process?
- A. The maturity level of risk management practices in the organization.
- B. The competency of the internal auditors in risk management.
- C. The extent to which the internal audit activity is outsourced.
- D. The nature of the business and the environment in which the organization operates.
Answer: C
NEW QUESTION # 121
Which of the following best describes the risk contained in an initial public offering for a new stock?
- A. Inherent risk
- B. Net risk
- C. Residual risk
- D. Underlying risk
Answer: A
NEW QUESTION # 122
An internal auditor is assessing the risk of employees falsifying reimbursement requests for business- related meals or travel. Which of the following procedures would the internal auditor most likely perform first?
- A. Determine whether or not the payroll/accounting department has been subject to regular review.
- B. Review the supplemental documentation provided for a sample of reimbursement requests.
- C. Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
- D. Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
Answer: D
NEW QUESTION # 123
Why is a code of ethics for the internal audit profession necessary?
- A. It provides auditors with protection from lawsuits.
- B. It requires auditors to exhibit loyalty to their organizations.
- C. It ensures that all members of the profession possess the same level of competence.
- D. It guides internal auditors in their service to others.
Answer: D
NEW QUESTION # 124
Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management's competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.
- A. 2, 3, and 4 only
- B. 1 and 2 only
- C. 1, 2, and 4 only
- D. 1, 2, and 3 only
Answer: C
NEW QUESTION # 125
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IIA-CIA-Part1 exam consists of 125 multiple-choice questions and is administered in English. Candidates have two hours and 30 minutes to complete the exam, and a passing score of 600 or higher is required to pass. IIA-CIA-Part1 exam is computer-based and can be taken at any of the IIA's testing centers around the world. While there are no formal prerequisites for taking the Essentials of Internal Auditing exam, candidates are strongly encouraged to have a basic understanding of internal auditing concepts and practices. To prepare for the exam, candidates can take advantage of study materials provided by the IIA, such as textbooks, online courses, and practice exams.
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