IIA-CIA-Part1 Practice Test

In assessing the independence of the internal audit activity,a member of a peer review
team should consider all of the following factors except:

A.

Access to and frequency of communications with the board of directors or its audit committee.

B.

The criteria of education and experience considered necessary when filling vacant
positions on the audit staff.

C.

The degree to which auditors assume operating responsibilities.

D.

The scope and depth of engagement objectives for the audit engagements included in the review.

A daily report which lists unsuccessful attempts to log on to a computer system is A.

A.

Corrective control.

B.

Preventive control.

C.

Detective control.

D.

Compensating control.

In addition to data protection,which of the following is a control that is typically used by
companies to safeguard the privacy rights of their customers?
I.End-user computing.
II.Encryption of data.
III.Spyware.
IV.Intrusion detection.

A.

IIonly

B.

I and IIIonly

C.

II and IVonly

D.

I,II,and IVonly

A chief audit executive (CAE) is obtaining information required by a regulatory oversight
body and discovers a situation that requires management to take immediate corrective
action. What is the best course of action for the CAE to take?

A.

Wait until all of the information has been gathered and reported to the oversight body
before reporting the situation to management.

B.

Check with legal counsel to determine whether the situation can be reported to
management before all information has been submitted to the oversight body.

C.

Report the situation to management immediately.

D.

Schedule an engagement to explore the situation in depth,before reporting to either
management or the oversight body.

In the annual audit of the financial statements of a company with high inherent risk and a
very strong control system,the external auditor may be able to allow detection risk to risebecause.

A.

Audit risk has been reduced.

B.

Control risk has been assessed at a lower level.

C.

The company's operations are very susceptible to misstatements.

D.

Whenever inherent risk is high,control risk is disregarded.