IIA-CIA-Part1 Practice Test

Which of the following describes a control weakness?

A.

Purchasing procedures are well designed and are followed unless otherwise directed by
the purchasing supervisor.

B.

Pre-numbered blank purchase orders are secured within the purchasing department.

C.

Normal operational purchases fall in the range from $500 to $1,000 with two signatures
required for purchases over $1,000.

D.

The purchasing agent invests in a publicly traded mutual fund that lists the stock of one
of the company's suppliers in its portfolio.

Which source of audit evidence would provide the least value in flowcharting an
organization's purchasing process?

A.

An interview with the purchasing supervisor.

B.

A review of a sample of purchase orders which were completed during the last month.

C.

A review of the purchasing policies and procedures manual.

D.

A walk-through of the process with a member of the purchasing staff.

Two individuals are being considered for an audit team that is to perform a highly technical review.
Which of the following situations would preclude selection of the individual for the audit due
to an objectivity concern?
I. Person A is a member of the internal audit staff and has the required technical skills.
Person A participated in a controls review of the system to be audited when it was being
developed.
II.Person B is a technical specialist who understands the audit area but is not a member of
the internal audit staff. Although person B has personal credibility in the information
systems department to be audited,person B works for another department in the
organization.

A.

Ionly

B.

IIonly

C.

Both I and II.

D.

Neither I nor II.

It would be appropriate for an internal audit activity to use consultants with expertise in
health-care benefits when the internal audit activity is:
I. Conducting an audit of the organization's estimate of its liability for post retirement
benefits,which include health care benefits.
II.Comparing the cost of the organization's health care program with that of other programs
offered in the industry.
III.Training its staff to conduct an audit of health care costs in a major division of the organization.

A.

Ionly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

Which of the following audit activities is within the scope of assurance activities as stated in
the International Professional Practices Framework?

A.

Review a make-or-buy decision and report a recommendation to management for approval.

B.

Participate in negotiations for a corporate acquisition.

C.

Assess financing alternatives for a new generator.

D.

Perform an evaluation of management's planning process.