IIA-CIA-Part1 Practice Test

Which of the following best contributes to the effectiveness of the internal audit activity in
an organization?

A.

Appropriate terms of internal audit scope and responsibility in the charter.

B.

Appropriate compliance coverage in the annual audit plan.

C.

Regular review of the audit charter by management.

D.

Assurance of internal audit objectivity by the board.

Which of the following is the primary concern of an internal auditor in a comprehensive
audit of an organization?

A.

Accuracy of reports on the source and use of funds.

B.

Extent of achievement of the organization's mission.

C.

Confirmation of compliance with policies and procedures.

D.

Appropriateness of procedures related to the budgeting process.

Which of the following actions by a chief audit executive is most likely to prevent
exaggerated sales reports by division management?
I.Hire a new internal auditor who has fraud investigation credentials.
II.Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with,but independent of,sales.
III.Announce a series of internal audit engagements focusing on compliance with corporate
sales-reporting policies.
IV.Ask the president and the board to issue a statement of corporate policy stressing the
importance of accurate management reporting and the negative consequences of
intentional misreporting.

A.

I and IIonly

B.

II and IIIonly

C.

III and IVonly

D.

I,II,III,and IV.

Risk within an internal audit engagement is defined as the:

A.

Probability that a balance or class of transactions and related assertions contain
misstatements that could be material to the financial statements.

B.

Uncertainty of an event occurring that could have an impact on the achievement of
objectives.

C.

Failure to adhere to organizational policies,plans,and procedures,or the failure to comply
with relevant laws and regulations.

D.

Failure to accomplish established objectives and goals for operations or programs.

Which of the following situations allows for the most objectivity on the part of an internal auditor?

A.

Assessing testing procedures in a new computer system.

B.

Performing a risk assessment of a new financial instrument.

C.

Drawing conclusions from a sample of financial transactions.

D.

Comparing current environmental activities against legislation.