IIA-CIA-Part1 Practice Test

Due to urgent requests from management,a busy internal audit activity finds that it can no
longer meet all of its commitments contained in the annual audit plan. The best course of
action for the chief audit executive to take would be to:

A.

Continue with the plan and seek opportunities to adjust priorities and reallocate resources.

B.

Advise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.

C.

Advise the board and senior management and request a reassessment of the plan.

D.

Advise the board immediately and seek their support for additional resources to meet the needs of the plan.

Which of the following is not an appropriate role of the internal audit activity in governance
activities?

A.

Support the board in enterprise-wide risk assessment.

B.

Ensure the timely implementation of audit recommendations.

C.

Monitor compliance with the organization's ethics policies.

D.

Discuss areas of significant risk.

During an audit engagement,an internal auditor finds that management is not complying
with previous commitments made to the external auditors. However,the auditor determines
management's actions to be justified due to significant changes in the business. The best
course of action for the auditor to take would be to:

A.

Proceed with the audit engagement and assess the changes actually implemented by management.

B.

Inform the external auditors and seek their guidance.

C.

Inform the external auditors and remove the associated work from the internal audit scope.

D.

Compare the recommended changes against the changes made by management and advise management which action to take.

When performing benchmarking during the planning phase of a performance audit,an
internal auditorshould:

A.

Determine the current performance gap.

B.

Project future performance levels.

C.

Develop functional action plans.

D.

Identify comparative organizations.

Which of the following would be most relevant regarding the internal control environment?

A.

Assessing controls over computerized applications.

B.

Documenting the organizational structure.

C.

Comparing and validating internal performance with external benchmarking.

D.

Maintaining and reviewing detailed financial records.