IIA-CIA-Part1 Practice Test

In selecting an instructional strategy for developing internal audit staff,a chief audit
executive should first reviewthe:

A.

Department's budget constraints.

B.

Internal auditors' personal development needs.

C.

Content of potential training courses.

D.

Organization's objectives.

Which of the following statements is correct regarding corporate compensation systems
and related bonuses?
I.A bonus system should be considered part of the control environment of an organization
and should be considered in formulating a report on internal control.
II.Compensation systems are not part of an organization's control system and should not
be reported as such.
III.An audit of an organization's compensation system should be performed independently
of an audit of the control system over other functions that impact corporate bonuses.

A.

Ionly

B.

IIonly

C.

IIIonly

D.

II and IIIonly

The primary reason that a chief audit executive (CAE) reviews external audit management
letters and management response is to:

A.

Select areas to emphasize in future internal audit engagements.

B.

Check the effectiveness of external audit resources used.

C.

Ensure that comments in the letter are supported by evidence.

D.

Verify that there has been no duplication of internal audit work.

Which of the following is most likely to be an element of an effective compliance program?

A.

The internal audit activity is assigned responsibility for overseeing the program.

B.

The program is communicated to employees in a video format on a one-time basis.

C.

The organization uses monitoring systems designed to detect improper activity.

D.

The organization obtains as much information as possible when performing background
checks on employees.

The best reason for separating the cash-receiving function from the related record-keeping
function is to:

A.

Segregate cash payments from cash receipts.

B.

Provide accountability for cash received.

C.

Minimize misappropriations in cash receipts.

D.

Improve physical security over the cash-receiving function.