IIA-CIA-Part1 Practice Test

Which of the following best describes the procedures used by the representatives of an
organization's stakeholders to provide oversight of the processes administered by management?

A.

Governance

B.

Control

C.

Risk management

D.

Monitoring

During an audit of financial contracts,an auditor learns that a relative has a substantial loan
with the organization. The auditorshould:

A.

Exclude the relative's information from the audited work and proceed with the audit engagement.

B.

Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.

C.

Immediately withdraw from the audit engagement.

D.

Notify management and the chief audit executive (CAE) and have the CAE determine
whether the auditor should continue with the audit engagement.

Which of the following should be the primary objective of an audit of an entity's business continuity plan?

A.

Cost of testing and updating the plan.

B.

Delegation of responsibilities for the plan.

C.

Relationship of the plan to risk exposures.

D.

Efficiency of the planning procedures.

An organization's external auditor has prepared a list of risks and issues and has
recommended to senior management that the internal audit activity focus on these items.
Senior management has forwarded the list to the chief audit executive (CAE). The CAEshould:

A.

Incorporate the external auditor's requirements into the internal audit plan.

B.

Ignore the external auditor's requirements because they are outside of the internal audit
activity's planned scope of work.

C.

Consider the issues raised by the external auditor for possible inclusion in the planned scope of work.

D.

Report the risks and issues to the audit committee for possible future attention.

Which of the following statements,if true,could justify an auditor's decision not to report
governance-related control deficiencies to the audit committee?

A.

Management plans to initiate corrective action.

B.

The board of directors has a separate corporate governance committee.

C.

The amounts and the potential risks associated with the deficiencies are not material to
the overall organization.

D.

 Governance issues are complex and the auditor should rely on management's analysis
of the extent of the problem.