IIA-CIA-Part1 Practice Test

In order to exercise due professional care as defined in the International Professional
Practices Framework,an internal auditorshould:
I.Consider the probability of significant noncompliance in each audit engagement.
II.Perform assurance procedures with sufficient care to ensure that all risks are identified.
III.Weigh the cost of assurance against the benefits.

A.

I and IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

Inadequate risk assessment would have the strongest negative impact in which of the
following phases of an audit engagement?

A.

Determining the scope.

B.

Reviewing internal controls.

C.

 Testing.

D.

 Evaluating findings.

Which of the following would provide the most reliable information on the risk associated
with an auditable activity?

A.

Event scenarios with regression analysis.

B.

Past audit findings and instances of management failures.
 

C.

Consequences and economic predictability of loss.

D.

Management assessment and corroboration by the internal audit activity.

Fraud is most frequently detected by:

A.

Following up on tips from employees or citizens.

B.

Following up on analytical review of high-risk areas.

C.

Performing periodic reconciliations over cash and other assets.

D.

Performing unannounced audits or reviews of programs or departments.

According to the International Professional Practices Framework,internal auditors should
possess which of the following competencies?
I.Proficiency in applying internal auditing standards,procedures,and techniques.
II.Proficiency in accounting principles and techniques.
III.An understanding of management principles.
IV.An understanding of the fundamentals of economics,commercial
law,taxation,finance,and quantitative methods.

A.

Ionly

B.

IIonly

C.

I and IIIonly

D.

I,III,and IVonly