IIA-CIA-Part1 Practice Test

The chief audit executive should periodically report the internal audit activity's
purpose,authority,responsibility,and performance,as well as significant risk exposures and
control issues,to which of the following?
I. Board of directors.
II.Senior management.
III.Shareholders.
IV.External auditors.

A.

IIonly

B.

I and IIonly

C.

I,II,and IIIonly

D.

I,III,and IVonly

A code of business conduct provides?

A.

A fraud avoidance plan that does not explicitly describe punishments for violations.

B.

A passive method of fraud deterrence.

C.

A program to anonymously report irregularities to authorities.

D.

An alternative to "tone at the top" programs.

Which of the following best describes how the increased use of computerization may
impact an auditor's assessment of the risk of fraud?

A.

Access to assets may be available to information systems personnel as well as to computer users.

B.

Computer controls are generally less effective than human review.

C.

Overrides of key controls may require less collaboration.

D.

Audit trails are less effective.

If earnings on financial statements for internal use only have been manipulated in the
past,an internal auditor is likely to focus on which of the following?

A.

The proper accrual of payables at the end of the interim period.

B.

The timing of revenue recognition and the valuation of inventories.

C.

Whether accounting estimates are reasonable given past actual results.

D.

Whether there have been changes in accounting principles that materially affect the financial statements.

Which of the following is not an appropriate role for internal auditors after a disaster occurs?

A.

Monitor the effectiveness of the recovery and control of operations.

B.

Correct deficiencies of the entity's business continuity plan.

C.

Recommend future improvements to the entity's business continuity plan.

D.

Assist in the identification of lessons learned from the disaster and the recovery operations.