IIA-CIA-Part1 Practice Test

Overall audit efficiency is enhanced between the internal and external audit functions when:

A.

Internal audit coverage is reduced to avoid potential conflicts of interest.

B.

Audits of the same department are conducted at different times.

C.

The internal audit department reviews functions or departments prior to the external audit.

D.

External audit scope is reduced based on the internal audit department's activities.

In order to save time,an audit manager no longer required that a standard internal control
questionnaire be completed for each audit engagement. Does this represent a violation of
the Standards?

A.

Yes,because internal control should be evaluated on every engagement and the internal
control questionnaire is the mandated approach to evaluate controls.

B.

Yes,because internal control should be evaluated on every engagement and the internal
control questionnaire is the most efficient method to do so.

C.

No,because auditors may omit necessary procedures if there is a time constraint,based
on audit judgment.

D.

No,because auditors are not required to complete internal control questionnaires on
every engagement.

Which of the following risk assessment tools would best facilitate the matching of controls to risks?

A.

Control matrix.

B.

Internal control questionnaire.

C.

Control flowchart.

D.

Program evaluation and review technique (PERT) analysis.

At the beginning of fieldwork in an audit of investments,an internal auditor noted that the
interest rate had declined significantly since the engagement work program was created.
The auditor should:

A.

Proceed with the existing program since this was the original scope of work that was approved.

B.

Modify the audit program and proceed with the engagement.

C.

Consult with management to verify the interest rate change and proceed with the engagement.

D.

 Determine the effect of the interest rate change and whether the program should be modified.

In an assurance engagement of treasury operations,an internal auditor is required to
consider all of the following issues except:

A.

The audit committee has requested assurance on the treasury department's compliance
with a new policy on the use of financial instruments.

B.

Treasury management has not instituted any risk management policies.

C.

Due to the recent sale of a division,the amount of cash and marketable securities
managed by the treasury department has increased by 350 percent.

D.

The external auditors have indicated some difficulties in obtaining account confirmations.