IIA IIA-CIA-Part1 - Internal Audit Fundamentals
Which of the following most accurately describes the role of the board when it comes to organizational governance?
Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?
According to IIA guidance, which of the following is true of the internal audit activity’s quality assurance and improvement program?
1 Monitoring the internal audit activity’s performance must be ongoing
2 All aspects of the internal audit activity should be evaluated
3 The requirement for external assessments can be satisfied through self-assessments that are validated by an independent external party
4 The review of assurance services should be the primary focus
During an audit of an organization's accounts payable area, an internal auditor identified anomalies in the information examined that may indicate potential fraud. Which test should the auditor perform first to verify this?
In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?
Which of the following should be considered in developing a risk and control model for use in an engagement?
Which of the following should be implemented to promote independence of the internal audit activity?
Which of the following should play a leading role in overseeing the ethical atmosphere of an organization?
During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud. To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?
During an audit of the purchasing department, an internal auditor identifies significant issues that could affect the organization's financial reporting. Management disagrees with the audit results. Which of the following responses best demonstrates the internal auditor has the necessary competencies related to professional Judgment and conflict management?
Which of the following organizations has reached the most mature level of corporate social responsibility?
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.
A new internal auditor was recently recruited to the internal audit activity from the organization's finance department. What is likely to be the chief audit executive’s greatest concern regarding assigning the new auditor to upcoming audits in the finance department?
An internal auditor is providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop. What is the best course of action for the auditor to take concerning the consulting service?
Which of the following should a general internal auditor be able to characterize as an IT-related risk?
