IIA-CIA-Part1 Practice Test

Which of the following corporate travel policies is least likely to be cost-effective?

A.

Negotiating corporate agreements with hotels,airlines,and car rental firms.

B.

Tracking credits for canceled airline reservations.

C.

Selecting the least expensive airline travel available,without regard to total travel time and distance.

D.

Traveling to facilities in tourist areas during the off-season when possible.

An objective for an audit of a medical research corporation is to evaluate management's
controls to ensure that timely reports are submitted to sponsors of contracted research
projects. In planning the audit to achieve this objective,the auditor should begin by:

A.

Reviewing policies and procedures.

B.

Interviewing a group of research managers.

C.

Observing report preparation in a number of laboratories.

D.

Sending a questionnaire to a sample of research sponsors.

Which of the following is a role of the board of directors in the governance process?

A.

Conduct periodic assessments of the organization's governance systems.

B.

Obtain assurance concerning the effectiveness of the organization's governance systems.

C.

Implement an effective system of internal controls to support the organization's governance systems.

D.

Review and approve operational goals and objectives.

Management has requested that an internal auditor serve as member of a task force that
will review current receivables practices and make recommendations to improve
processes. Which of the following is the most appropriate response by the internal auditor?

A.

Accept the assignment provided that such consulting services are defined in the charter.

B.

Decline the assignment because participation on task forces will impair the auditor's
objectivity in future audit engagements.

C.

Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.

D.

Do not accept the assignment because the assignment is not part of an approved audit plan.

An auditor for a large wholesaler is evaluating the controls over the approval and oversight
of credit sales. Which of the following procedures would be a control weakness?

A.

The credit department is responsible for approving shipments to all customers.

B.

  The finance committee of the board of directors periodically reviews credit standards.

C.

 Customers who fail to meet credit requirements must pay cash for shipments upon delivery.

D.

The sales department is responsible for determining the credit ratings of customers.