IIA Internal Audit Fundamentals - IIA-CIA-Part1 Exam Practice Test

A. Review and adjudicate all violations of the code of conduct.

B. Implement a system of procedures to inform all employees of the code.

C. Lead the committee responsible for the oversight of the code.

D. Act as an advisor to the committee responsible for reviewing violations of the code.

A. An internal auditor is assigned to assess whether a proposed new initiative to convert a customer service system would be cost-effective.

B. Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.

C. The chief financial officer asks for the internal auditor ' s opinion regarding whether the new accounting pronouncements were properly and comprehensively adopted.

D. Senior management asks the internal audit activity to review compliance with customer data security regulations.

A. Reconciling claims against business the requests that were approved by supervisors

B. Verifying whether claims are properly supported by invoices or other documents.

C. Confirming that all claims are within the limits of the organization ' s travel policy.

D. Verifying whether claims have been properly authorized for payment

A. The nature of services that the internal audit activity will provide to external third parties

B. The objectives and goals of management

C. The process used by the CAE to manage the organization ' s internal controls

D. The responsibilities of the audit committee

A. Communication.

B. Critical thinking.

C. Persuasion.

D. Business acumen.

A. The internal audit mission statement.

B. The internal audit charter.

C. The internal audit policies and procedures handbook.

D. Each internal audit engagement letter.

A. Reporting.

B. Documentation.

C. Leadership.

D. Analysis.

A. 2 and 4.

B. 1, 2, and 3.

C. 1 and 4.

D. 2, 3, and 4.

A. Record that the internal audit activity's completion of audit assignments has been met.

B. Assess the knowledge and skills of the internal audit activity to identify any gaps.

C. Hire qualified and skilled internal auditors for the organization ' s internal audit activity.

D. Postpone audits where the internal team does not have the necessary skills or knowledge.

A. Advise the board on risk management issues

B. Determine organizational risk tolerances

C. Determine the likelihood and impact of risks

D. Monitor the organization ' s risk mitigations

A. Confidentiality

B. No violation was committed

C. Objectivity

D. Integrity

A. Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

B. Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.

C. The benefit of the IAA ' s organizational independence is realized primarily via reduced costs for the external auditor.

D. Independence is impaired when the scope of the IAA is subject to changes required by senior management.

A. Professionalism

B. Competency.

C. Effective communication

D. Due professional care.

A. Responsibility to be involved in management of the organization.

B. Responsibility to determine who is accountable for outcomes.

C. Responsibility for outcome of the process.

D. Responsibility to identify risks in the organization's business environment

A. Select board members with necessary knowledge and skills.

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. Develop, approve, and execute the strategic plan of the organization.