IIA-CIA-Part1 Practice Test

According to the International Professional Practices Framework,risk is:
I.Defined as the negative effect of events that are expected to occur.
II.Measured in terms of consequences.
III.Measured in terms of likelihood.

A.

Ionly

B.

I and IIonly

C.

 II and IIIonly

D.

I,II,and III.

Which of the following is not true with regard to the internal audit charter?

A.

It defines the authorities and responsibilities of the internal audit activity.

B.

It specifies the minimum resources needed for the internal audit activity.

C.

It provides a basis for evaluating the internal audit activity.

D.

It should be approved by senior management and the board.

When developing an effective risk-based plan to determine audit priorities,an internal audit
activity should start by:

A.

Identifying risks to the organization's operations.

B.

Observing and analyzing controls.

C.

Prioritizing known risks.

D.

Reviewing organizational objectives.

Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

A.

Attending audit staff meetings.

B.

 Verifying that all completed audit tests are fully documented.

C.

Publishing an article on the company's internal audit department.

D.

Obtaining experience on the job.

Which of the following would provide the best assessment of an organization's ethical climate?

A.

Number of years that directors have been appointed to the board.

B.

Evidence of training provided to the board of directors on ethical issues.

C.

Clarity and consistency of consequences imposed by the board of directors for ethical violations.

D.

Frequency of fraud reported and results of subsequent investigations.