IIA-CIA-Part1 Practice Test

When a risk assessment process has been used to construct an audit engagement
schedule,which of the following should receive attention first?

A.

The external auditors have requested assistance for their upcoming annual audit.

B.

A new accounts payable system is currently undergoing testing by the information
technology department.

C.

Management has requested an investigation of possible lapping in receivables.

D.

The existing accounts payable system has not been audited over the past year.

A major difference between enterprise risk management and traditional risk management
lies in the narrow focus of traditional risk management on:
I.Property and liability risks.
II.Risks with insurance solutions.
III.Risks impacting organizational objectives.

A.

I and IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

A chief audit executive used risk assessment to prepare the audit work schedule. Which of
the following would be the least appropriate reason to modify the schedule?

A.

Need for coordination of audit activities with the external auditors.

B.

Request for postponement since the audit would be too complicated.

C.

Change in the relative risk of auditable activities during the year.

D.

Budget constraints or expansions.

The percentage of orders that are rush orders and the percentage of returns to total orders
are examples of which of the following types of control activities?

A.

Quality control monitoring.

B.

Direct functional management.

C.

Benchmarking.

D.

Performance indicators.

The internal audit activity's role in the risk assessment and management processes of an
organization is determined bythe:

A.

Board of directors.

B.

Chief audit executive.

C.

Risk management department.

D.

External auditors.