IIA-CIA-Part1 Practice Test

An internal audit activity's work schedule should always provide sufficient information to the
audit committee to enable it to determine whether the proposed engagements:

A.

Support the organization's objectives.

B.

Include sufficient fraud awareness.

C.

Will likely result in the detection of any major risk exposures.

D.

Are likely to detect control deficiencies.

When planning the work program for an assurance engagement,an internal auditor should
first review the department's business objectives and then:

A.

Identify risks.

B.

Review controls.

C.

Determine scope.

D.

Evaluate vulnerabilities.

Which of the following would be the most effective action for an internal audit activity to
take in order to assist in improving an organization's ethical climate?
I.Review formal and informal processes within the organization that could promote
unethical behavior.
II.Conduct surveys of employees,suppliers,and customers regarding ethics.
III.Assess the employees' knowledge of and compliance with the organization's code of conduct.

A.

Ionly

B.

I and IIonly

C.

II and IIIonly

D.

I,II,and III.

An internal audit activity encounters a scope limitation from senior management that will
affect its ability to meet its goals and objectives for a potential engagement client. The
nature of the scope limitation shouldbe.

A.

Noted in the audit workpapers,but the engagement should be carried out as
scheduled,with any necessary adjustments made based on the scope limitation.

B.

Communicated to the external auditors so that they can investigate the area in more detail.

C.

Communicated,preferably in writing,to the board.

D.

Communicated to management,stating that the limitation will not be accepted because it
would impair the audit activity's independence.

Which of the following is a key performance indicator for an internal audit function?

A.

Audit expenditures compared to financial budgets.

B.

Percent of required continuing education hours completed.

C.

Implementation of new audit computer software.

D.

Frequency of meetings with the board members.