IIA-CIA-Part1 Practice Test

Which of the following would be the most useful in developing an annual audit plan?

A.

General purpose audit software.

B.

Voting software and hardware.

C.

Flowcharting and data capture software.

D.

Risk assessment software.

An internal auditor is reviewing a new automated human resources system. The system
contains a table of pay rates which are matched to the employee job classifications. The
best control to ensure that the table is updated correctly for only valid pay changes would be to:

A.

Limit access to the data table to management and line supervisors who have the
authority to determine pay rates.

B.

Require a supervisor in the department,who does not have the ability to change the
table,to compare the changes to a signed management authorization.

C.

Ensure that adequate edit and reasonableness checks are built into the automated system.

D.

Require that all pay changes be signed by the employee to verify that the change goes
to a bona fide employee.

If an engagement client's operating standards are vague and thus subject to interpretation,the auditorshould:

A.

Seek agreement with the client as to the standards to be used to measure operating performance.

B.

Determine best practices in the area and use them as the standard.

C.

Interpret the standards in their strictest sense because standards are otherwise only
minimum measures of acceptance.

D.

Omit any comments on standards and the client's performance in relationship to those
standards,because such an analysis would be meaningless.

Which of the following is a benefit from reduced testing during a particular phase of an
audit engagement?

A.

The size of the internal audit activity can be reduced.

B.

There is less concern about assessing inherent risk.

C.

The level of planned audit risk is lowered.

D.

Additional audit hours are available for pursuing other engagement objectives.

To assure that the technical proficiency of internal auditors is appropriate for the audit
engagements to be performed,a chief audit executiveshould:

A.

Consider the scope of work and level of responsibility when establishing criteria for
education and experience in filling internal auditing positions.

B.

Ensure that each newly hired auditor is qualified in all of the disciplines needed to accomplish the department's audit mission.

C.

Oversee a training program that matches the actual training provided with the interests of individual auditors.

D.

Require all of the audit staff to pursue a minimum number of continuing professional education hours each year.