IIA-CIA-Part1 Practice Test

A manufacturing firm uses hazardous materials in the production of its products. An audit of
the firm's processes related to hazardous materials shouldinclude.

I.Recommending an environmental management system as part of policies and procedures.
II.Verifying the existence of tracking records for these materials from creation to destruction.
III.Using consultants to avoid self-incrimination of the firm in the event illegalities were detected in an environmental audit.
IV.Evaluating the cost provided for in an environmental liability accrual account.

A.

IIonly

B.

III and IVonly

C.

I,II,and IVonly

D.

I,III,and IVonly

In developing an appropriate work program for an audit engagement,the most important
factor for an audit supervisor to consider isthe:

A.

Availability of records and data.

B.

Potential impact of risks.

C.

Capabilities of audit personnel.

D.

Time required to complete the engagement.

Which of the following is not an appropriate type of coordination between the internal audit
activity and regulatory auditors?

A.

Regulatory auditors share their perspective on risk management,control,and governance
with the internal auditors.

B.

Internal auditors perform fieldwork at the direction of the regulatory auditors.

C.

Internal auditors review copies of regulatory reports in planning related internal
engagements.

D.

Regulatory and internal auditors exchange information about planned activities.

An organization that outsources much of its internal audit work to an external service
provider is planning for an external quality assessment. Which of the following options
would accomplish this task and be in conformance with the Standards?

A.

External industry associate that performed a similar review for a supplier of the organization.

B.

A team from an independent entity that previously employed the chief audit executive of
the organization.

C.

A team under the direction of the organization's chief audit executive with validation by a
former manager of the internal audit activity.

D.

The same external service provider because of its competency and experience with the organization.

Internal auditors exercise judgment about the type and amount of information to be
collected. The primary purpose of this judgment is to:

A.

Eliminate the risk of drawing incorrect conclusions.

B.

Minimize the cost of the audit engagement.

C.

Comply with the Standards.

D.

Provide a sound basis for audit observations and recommendations.