IIA-CIA-Part1 Practice Test

To ensure that due professional care has been taken during an audit engagement,an
internal auditor should always:

A.

Ensure that all financial information related to the engagement is included in the audit
plan and examined for irregularities.

B.

Document all audit tests completely.

C.

Consider the possibility of noncompliance or irregularities at all times during an engagement.

D.

Notify the audit committee of any noncompliance or irregularity discovered during an engagement.

Internal auditors who are concerned with potential risks due to the mishandling of records
or transactions should take into consideration:

A.

The type and nature of the activities to be examined.

B.

Whether employees in key positions of trust are bonded.

C.

The history of losses suffered by the company.

D.

The results of prior risk assessments.

Reportable audit findings mustbe:
I.Documented by facts.
II.Supported by relevant evidence.
III.Agreed to by management of the audited area.
IV.Convincing enough to compel corrective action.

A.

I and IVonly

B.

II and IIIonly

C.

I,II,and IVonly

D.

I,II,III,and IV.

What role,if any,should the internal audit activity have in the process of following up on
observations and recommendations made by the external auditors?

A.

The internal audit activity should have no role in this process in order to ensure independence.

B.

The internal audit activity should become involved only if the chief audit executive has
sufficient evidence that the follow-up is not occurring.

C.

The internal audit activity should review the adequacy and effectiveness of management's follow-up actions.

D.

The internal audit activity should become involved only if specifically requested by management or the board of directors.

Using the internal audit department to coordinate regulatory examiners' efforts is beneficial
to the organization because internal auditors can:

A.

Influence regulatory interpretation of law to better match corporate practice.

B.

Recommend changes to the scope of the regulatory examiners' review.

C.

Perform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.

D.

Supply evidence of adequate compliance testing through internal audit workpapers and reports.