IIA-CIA-Part1 Practice Test

If management has not established a risk management process,the internal audit activitycould.

A.

Take a proactive role that supplements traditional assurance activities.

B.

Identify and mitigate risks to the organization.

C.

Assume responsibility for the management of identified risks.

D.

Assume primary responsibility for determining if adequate and effective processes are in place.

Which of the following processes should be included in a benchmarking activity?
I.Identify key measures.
II.Collect data on performances and practices.
III.Identify opportunities for improvement.

A.

IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

The primary objective of risk-based auditing is to assessthe:

A.

Economy of controls.

B.

Compliance with controls.

C.

Adequacy of controls.

D.

Efficiency of controls.

Which of the following elements should an auditor recommend for inclusion in an
organization's code of ethics?
I.Ethics should vary with local customs in the organization's foreign operations.
II.Whistle-blowing should be discouraged because it can cause distrust among employees
and false accusations which waste organizational resources on investigations.
III.Ethical behavior should not be incorporated into performance evaluations because it is
too subjective and controversial.

A.

Ionly

B.

IIonly

C.

I,II,and III.

D.

None of the above.

Which of the following would have the least impact (either positive or negative) on an
assessment of a department's control environment?

A.

The department managed long-term investments,including investment in derivatives and
other financial instruments,to maximize return.

B.

The department manager sets a tone of honesty and integrity in all business dealings
and this tone is emulated by department personnel.

C.

Many department functions were duplicated or verified by other department employees
as part of the department's normal procedures.

D.

Audit tests designed to verify compliance with control procedures detected a general
failure to follow standard procedures for transaction authorization.