IIA-CIA-Part1 Practice Test

Which of the following is an appropriate role for the board in governance?

A.

Preparing written organizational policies that relate to compliance with
laws,regulations,ethics,and conflicts of interest.

B.

Ensuring that financial statements are understandable,transparent,and reliable.

C.

Assisting the internal audit activity in performing annual reviews of governance.

D.

Working with the organization's attorneys to develop a strategy regarding current
litigation,pending litigation,or regulatory proceedings governance.

After several years in the engineering department,an engineer was transferred to the
internal audit department. One month later,the new auditor was assigned to an assurance
engagement for the engineering department. When the auditor's former engineering
supervisor suggested a change in the sample selection method,the auditor consulted with
the audit supervisor. They determined that the suggested method would not be as
representative and that the original selection method should be used. In this situation,the auditor:

A.

Maintained an independent mental attitude and is therefore objective.

B.

Has subordinated professional judgment,and objectivity is therefore impaired.

C.

Does not have objectivity since the auditor recently transferred from the engineering department.

D.

Does not have independent organizational status since the auditor recently transferred
from the engineering department.

Auditors 1,2,and 3 work out of various offices. Each must be assigned to one,and only
one,of three audit locations (A,B,or C). The cost of sending each auditor to each location is
listed below:
Audit Locations
Auditor 1
A
B
C
Auditor 2
$200
$300
$400
Auditor 3
$400
$300                                                                                                                                                         $600
$200
$200
$500
The minimum cost with which this assignment can be accomplished is:

A.

$800

B.

$900

C.

$1,000

D.

$1,100

Which of the following represents the most effective governance structure?
I.
Operating
Executive
Internal
Management
Management
Auditing
Responsibility for risk
Oversight role
Advisory role
II.
Oversight role
Responsibility for risk

Advisory role
III.
Responsibility for risk
Advisory role
Oversight role
IV.
Oversight role
Advisory role
Responsibility for risk

A.

I Only

B.

II

C.

III

D.

IV

In developing an appropriate work program for an audit engagement,the most important
factor for an audit supervisor to consider isthe:

A.

Availability of records and data.

B.

Potential impact of risks.

C.

 Audit personnel's knowledge and experience.

D.

Time required to complete the engagement.