IIA Essentials of Internal Auditing - IIA-CIA-Part1 Exam Practice Test

A. Employees in the data center must always wear identification badges

B. A two stage authentication process must be used to access customer information

C. System backup and recovery testing must be done monthly

D. Operating system updates must be installed within 48 hours.

A. Verifying that previously identified organizational risks were documented in board meeting minutes

B. Determining that there are no gaps between the internal auditors' risk assessment and the risk assessment performed by the organization

C. Obtaining evidence that employees throughout the organization are aware of the organization s risk appetite

D. Analyzing the results of successful testing of controls and monitoring procedures implemented by management

A. Tolerable misstatement risk.

B. incorrect rejection risk

C. Incorrect acceptance risk.

D. Anticipated misstatement risk

A. Operating management.

B. Board of directors.

C. Senior management.

D. Internal audit activity.

A. The internal auditor should accept the request and in fact she may assume some management responsibilities temporarily if the result is a relevant training benefit

B. The internal auditor may accept the request only if she defines the scope to ensure conformance with the Code of Ethics

C. The internal auditor should reject the request if the internal audit team does not have the requisite expertise.

D. The internal auditor should reject the request it she previously worked in the procurement area to maintain objectivity

A. Review any related prior fraud investigations.

B. Communicate any suspicious fraud activities to management.

C. Investigate any related fraud allegations.

D. Compare the organizations fraud strategies with the industry's strategies.

A. Ensuring regular documentation of auditor skills and experience in the workpapers.

B. Ensuring that auditors have a balance of both operational and internal audit responsibilities.

C. Basing performance evaluations heavily on customer satisfaction surveys.

D. Prohibiting auditors from accepting gifts from audit clients or potential clients.

A. Providing risk management frameworks.

B. Assisting management in developing processes and controls to manage risks and issues.

C. Identifying and mitigating significant risks to the organization.

D. Actively reporting to the governing body.

A. Hours and sources of continuing professional education

B. Authority and responsibility of the internal audit activity

C. Scope and frequency of both the internal and external assessments

D. independence and objectivity impairments of the CAE

A. To attract the best and most talented candidates in the profession

B. To ensure that each auditor maintains responsibility for his own professional development.

C. To ensure all audit staff members are capable of performing a quality self-assessment.

D. To ensure all internal audit responsibilities can be met

A. Outsource complex engagements to an external service provider

B. Establish policies and procedures concerning the engagement process

C. Base the auditor evaluation process on the number of observations

D. Develop a strategy for recruiting assigning, and training staff

A. An organization that opts out of investing in a new region due to volatility in foreign exchange rates.

B. An organization that takes no action in managing the possible exposure to an earthquake.

C. An organization that deploys policies and procedures to guide business activities and practices

D. An organization that takes out insurance policies to protect its property and equipment.

A. Communication failure.

B. Accountability/reward failure.

C. Monitoring gap.

D. Knowledge/skills gap.

A. The results of the QAIP should be communicated to shareholders annually

B. Quality assessments should be performed by individuals with sufficient knowledge of the internal audit practices

C. All quality assessments should be either conducted or validated by an independent assessment team

D. External quality assessments should be conducted every seven years