Updated Dec-2024 Test Engine to Practice IIA-CIA-Part1 Dumps & Practice Exam
Dumps Collection IIA-CIA-Part1 Test Engine Dumps Training With 725 Questions
IIA-CIA-Part1 (Essentials of Internal Auditing) Certification Exam is an important certification for individuals who are interested in pursuing a career in internal auditing. It is the first part of a three-part certification program that prepares candidates to become Certified Internal Auditors (CIA). Passing the exam demonstrates a candidate's knowledge and commitment to the profession of internal auditing, and is a requirement for many internal auditing positions in both the public and private sectors.
IIA-CIA-Part1 exam, also known as the Essentials of Internal Auditing, is a certification exam offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part1 exam is the first part of a three-part series designed to test the knowledge and skills of individuals seeking to become certified internal auditors. The Essentials of Internal Auditing exam covers topics such as internal audit function, risk management, governance, and business processes. Passing IIA-CIA-Part1 exam is a requirement for obtaining the Certified Internal Auditor (CIA) designation, which is globally recognized as a symbol of excellence in the internal audit profession.
NEW QUESTION # 117
Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?
- A. The nature of their regular duties and responsibilities.
- B. Previous experience working with the internal audit activity.
- C. Their understanding of auditing standards.
- D. Their reporting line within the organization.
Answer: C
NEW QUESTION # 118
A chief audit executive assigned an internal auditor to perform an assurance engagement. The auditor concluded with a major audit finding based on hearsay evidence Which of the following competencies did the auditor appear to be lacking?
- A. Risk-based assurance knowledge
- B. Demonstration of due professional care.
- C. Effective communication skills
- D. Demonstration of ethical behavior
Answer: C
NEW QUESTION # 119
An internal auditor is designing a sampling plan to test the accuracy of daily production reports over the past three years. All of the reports contain the same information except that Friday reports also contain weekly totals and are prepared by managers rather than by supervisors. Production normally peaks near the end of a month.
If the auditor wants to select two reports per month using an interval sampling plan, which of the following techniques reduces the likelihood of bias in the sample?
- A. Using multiple random starts.
- B. Increasing the confidence level.
- C. Estimating the error rate in the population.
- D. Increasing the precision.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 120
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. Review the supplemental documentation provided for a sample of reimbursement requests.
- B. Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
- C. Determine whether or not the payroll/accounting department has been subject to regular review.
- D. Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
Answer: B
NEW QUESTION # 121
Which of the following statements best describes internal auditors' role in fraud detection?
- A. Internal auditors should consider fraud risks in every assignment and demonstrate due care by detecting fraud instances.
- B. Internal auditors' roles are similar to those performed by loss prevention managers or fraud investigators.
- C. Internal auditors should possess a fraud-related body of knowledge, enabling them to carry out preventative and detective measures.
- D. Internal auditors' demonstration of adequate professional skepticism during an audit engagement is of paramount importance.
Answer: D
NEW QUESTION # 122
A chief audit executive (CAE) of a major retailer has engaged an independent firm of
information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists' work only if it is:
- A. Performed in accordance with the terms of the contract.
- B. Carried out in accordance with the Standards.
- C. Carried out using standard review procedures for retailers.
- D. Performed under the supervision of the information technology department.
Answer: B
NEW QUESTION # 123
Which of the following is the most appropriate outcome measure for assessing safety operations?
- A. Tests made of equipment.
- B. Number of operations observed.
- C. Number of inspections conducted.
- D. Reduction in machine down time due to accidents.
Answer: D
NEW QUESTION # 124
Which of the following qualifies as an acceptable consulting service provided by the internal audit activity?
- A. Conduct a post-implementation assessment of the enterprise resource planning system to determine whether project objectives were met and to identify opportunities to maximize potential benefits
- B. Audit a third party cloud service provider to review the effectiveness of governance and management controls in providing secure services to its customers
- C. Develop training and system rollout plans in response to the results of the change readiness assessment of a new sales distribution model
- D. Lead a risk self assessment session for laboratory managers to help identify inherent risks and provide recommendations on how to evaluate the risks
Answer: C
Explanation:
Developing training and system rollout plans in response to the results of the change readiness assessment of a new sales distribution model qualifies as an acceptable consulting service provided by the internal audit activity. This service is advisory in nature and is designed to add value and improve an organization's operations-aligned with the definition of consulting services under IIA standards. References: IIA definition of consulting services, which includes activities that provide advice and assistance designed to add value and improve an organization's governance, risk management, and control processes without the internal auditor assuming management responsibility.
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NEW QUESTION # 125
Which of the following controls would most likely prevent the input of an unreasonable number of labor hours into a costing system?
- A. Recalculation tests during processing.
- B. Consistency checks of data in input fields.
- C. Programmed limit tests of input fields.
- D. Reconciliation of input control totals.
Answer: C
NEW QUESTION # 126
Which of the following statements about internal audit consulting engagements is true?
- A. The primary purpose of a consulting engagement is to assess evidence and provide conclusions.
- B. Internal auditors may provide consulting services relating to operations for which they had previous responsibilities.
- C. The internal audit activity determines the nature and scope of work for the specific consulting engagement
- D. It is not appropriate to communicate control issues identified during consulting engagements to the board
Answer: B
Explanation:
Internal auditors may provide consulting services relating to operations for which they had previous responsibilities, provided they do not currently have any operational responsibilities that would impair their objectivity. This scenario is possible under IIA guidelines as long as any potential conflicts of interest are managed, and auditors maintain their independence regarding the areas they are auditing.References: IIA's International Standards for the Professional Practice of Internal Auditing, specifically standards on objectivity and independence in consulting roles.
NEW QUESTION # 127
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. Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
- B. Ensure that adequate edit and reasonableness checks are built into the automated system.
- C. Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.
- D. 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.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION # 128
According to IIA guidance, which of the following objectives of an assurance engagement for the organization's risk management process is valid?
- A. All controls are both adequate and efficient.
- B. Risks have been accurately analyzed and evaluated.
- C. All risks have been identified and mitigated.
- D. The board is appropriately addressing intolerable risks.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 129
Which of the following statements is correct with regard to risk management?
- A. The total process of risk management, which includes a related system of internal control, is the responsibility of the board.
- B. The chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.
- C. The board's responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.
- D. The finance director is responsible for the overall implementation of the risk management process.
Answer: A
NEW QUESTION # 130
An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by this employee, would represent a conflict of interest?
- A. Reviewing shipping documents for accuracy.
- B. Signing timekeeping cards for subordinates.
- C. Monitoring the allowance for doubtful accounts.
- D. Writing procedures for the handling of duplicate payments.
Answer: D
NEW QUESTION # 131
Which of the following processes does the board manage to ensure adequate governance?
- A. Develop, approve, and execute the strategic plan of the organization.
- B. Develop strategies to mitigate the risks to achieving the organization's objectives
- C. Establish and measure performance objectives for the internal audit activity.
- D. Select board members with necessary knowledge and skills.
Answer: A
Explanation:
The board manages the process of developing, approving, and executing the strategic plan of the organization to ensure adequate governance. This responsibility includes aligning the strategic plan with the organization's goals and monitoring its execution, which is a key governance role.References: Corporate governance principles; IIA guidance on the role of the board in strategic planning.
NEW QUESTION # 132
An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditorsuggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
- A. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
- B. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
- C. Ensure that adequate edit and reasonableness checks are built into the automated system.
- D. Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.
Answer: D
NEW QUESTION # 133
Which of the following statements is true regarding the importance of risk management?
- A. Risk management includes consideration of potential opportunities for the organization.
- B. Risk management aids with the establishment of appropriate key performance indicators.
- C. Risk management ensures the ability to eliminate potential hazards to the organization.
- D. Risk management increases employees' commitment and belief in strategic goals.
Answer: A
Explanation:
Risk management is not solely about mitigating or eliminating potential hazards but also involves identifying and seizing potential opportunities that can benefit the organization. Effective risk management allows an organization to balance risk and reward, making informed decisions that align with its strategic objectives.
This approach ensures a proactive stance in optimizing performance and achieving competitive advantage while managing risks.
References:
* The Institute of Internal Auditors (IIA) Standards and Practice Advisories.
* COSO Enterprise Risk Management (ERM) Framework.
* "Risk Management: Principles and Practices" by IIA.
NEW QUESTION # 134
After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?
- A. The engagement supervisor violated The IIA's Code of Ethics principle of confidentiality.
- B. The engagement supervisor violated The IIA's Code of Ethics principle of integrity.
- C. The engagement supervisor did not violate any principles of The IIA's Code of Ethics.
- D. The engagement supervisor violated The IIA's Code of Ethics principle of objectivity.
Answer: D
Explanation:
If the engagement supervisor accepts an expensive gift from management after the issuance of a final audit report, it violates The IIA's Code of Ethics principle of objectivity. Objectivity requires auditors to maintain an unbiased mental attitude and avoid conflicts of interest or unduly influenced behaviors. Accepting gifts can compromise the perceived or actual independence of the auditor, influencing decisions or outcomes of audits in favor of the gift giver.References: The IIA's Code of Ethics on Objectivity.
NEW QUESTION # 135
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