IIA-CIA-Part1 exam questions

1. Question 1

   Single answer

   Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?

   • A

     Review the organization's ethical value structure and reporting procedures.

   • B

     Review what the organization considers to be ethical behavior, such as the employee code of conduct.

   • C

     Review employee survey responses and follow up on those that suggest weaknesses in the ethical climate.

   • D

     Review the organization's records to ensure all employees have signed statements that they will follow ethical practices.

   Reveal answer

   Correct answer

   • C

     Review employee survey responses and follow up on those that suggest weaknesses in the ethical climate.

2. Question 2

   Single answer

   The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?

   • A

     Internal auditors found no instances of double billing and concluded there were no significant risks in this area.

   • B

     Internal auditors documented the scope and methodology of the data testing.

   • C

     Internal auditors discussed with management how data is safeguarded.

   • D

     Internal auditors received formal performance feedback from the engagement supervisor.

   Reveal answer

   Correct answer

   • B

     Internal auditors documented the scope and methodology of the data testing.

3. Question 3

   Single answer

   While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

   • A

     Proceed with the audit engagement, but do not include the relative's information.

   • B

     Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

   • C

     Disclose in the engagement final communication that the relative is a customer.

   • D

     Immediately withdraw from the audit engagement.

   Reveal answer

   Correct answer

   • B

     Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

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5. Question 4

   Single answer

   Which of the following is most likely to be considered a control weakness?

   • A

     Vendor invoice payment requests are accompanied by a purchase order and receiving report.

   • B

     Purchase orders are typed by the purchasing department using prenumbered forms.

   • C

     Buyers promptly update the official vendor listing as new supplier sources become known.

   • D

     Department managers initiate purchase requests that must be approved by the plant superintendent.

   Reveal answer

   Correct answer

   • D

     Department managers initiate purchase requests that must be approved by the plant superintendent.

6. Question 5

   Single answer

   An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing ( Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations.

   According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

   • A

     Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activityhas addressed all areas of nonconformance and the audit committee has been notified.

   • B

     Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.

   • C

     Indicate that the internal audit activity operates in partial conformance with the Standards t as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.

   • D

     Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to ail parties who received the original reports.

   Reveal answer

   Correct answer

   • A

     Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activityhas addressed all areas of nonconformance and the audit committee has been notified.

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