IIA-CIA-Part1 Practice Test

Which of the following is not a typical objective of any training plan developed for internal
audit activity staff?

A.

Consistency.

B.

Economy.

C.

Quality.

D.

Relevance.

A company produces a product that consists of materials X,Y,and Z. The product is mixed
so that:
The quantity of material X used is one-third more than that of material Y.
The quantity of material Y used is one-fourth less than that of material Z.
If the company used 24,000 units of material Z during a period,what is a reasonable
estimate of the amount of material X used?

A.

8,000

B.

18,000

C.

24,000

D.

32,000

An internal auditor is using mean-per-unit sampling to estimate the value of health benefit
claims for a period. The auditor's desired precision is $20,000. If the achieved precision is
$10,000,which of the following conditions is implied?

A.

The value of claims is overstated.

B.

The value of claims is understated.

C.

The standard deviation is smaller than expected.

D.

The standard deviation is larger than expected.

A chief audit executive (CAE) submits internal audit activity (IAA) plans and information
about significant interim changes to senior management and the board for review. Which
other piece of information should the CAE provide to senior management and the board?

A.

Identification of proposed consultants and support staff for the IAA.

B.

The most recent engagement of each member of the audit staff and its duration.

C.

The CAE's preferred statistical analysis methods and relevant software to be utilized.

D.

Resource requirements and resource limitations.

Which of the following are appropriate responsibilities of the audit committee in relation to
the chief audit executive (CAE)?
1.Approving the internal audit charter.
2.Approving decisions regarding the appointment and removal of the CAE.
3.Approving the risk management strategy for the organization.
4.Making appropriate inquiries of management and the CAE to determine whether there
are inappropriate scope and resource limitations.

A.

1 and 2 only

B.

1,2,and 3 only

C.

1,2,and 4 only

D.

2,3,and 4 only