IIA-CIA-Part1 Practice Exam and Study Guides - Verified By ValidExam Updated 185 Questions

2021 Updated Verified Pass IIA-CIA-Part1 Study Guides & Best Courses

What are the topics covered in IIA-CIA-Part1 Exam

Candidates must know the topics before they start of preparation. Because it will really help them in hitting the core. Our IIA-CIA-Part1 Exam dumps will include the following topics:

• Quality Assurance and Improvement Program (7%)
• Foundations of Internal Auditing (15%)
• Governance, Risk Management, and Control (35%)
• Fraud Risks (10%)
• Proficiency and Due Professional Care (18%)
• Independence and Objectivity (15%)

 

NEW QUESTION 12
According to the Standards,which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I.The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.
II.Treasury management has not instituted any risk management policies.
III.Due to the recent sale of a division,the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV.The external auditors have indicated some difficulties in obtaining account confirmations.

• A. I,II,and IIIonly
• B. I and IIonly
• C. II,III,and IVonly
• D. I and IVonly

Answer: A

Explanation:
Topic 3, Volume C

 

NEW QUESTION 13
During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management's actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:

• A. Proceed with the audit engagement and assess the changes actually implemented by management.
• B. Inform the external auditors and remove the associated work from the internal audit scope.
• C. Compare the recommended changes against the changes made by management and advise management which action to take.
• D. Inform the external auditors and seek their guidance.

Answer: A

Explanation:
Section: Volume B
Explanation/Reference:

 

NEW QUESTION 14
Which of the following controls would most likely prevent the input of an unreasonable number of labor hours into a costing system?

• A. Programmed limit tests of input fields.
• B. Recalculation tests during processing.
• C. Consistency checks of data in input fields.
• D. Reconciliation of input control totals.

Answer: A

 

NEW QUESTION 15
A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

• A. The agency's chief compliance officer.
• B. The external auditors from an accounting firm.
• C. The government's independent auditor.
• D. The internal audit activity.

Answer: C

 

NEW QUESTION 16
Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

• A. CAATs are more objective than the traditional methods in interpreting the results.
• B. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.
• C. CAATs can process the results faster and thus give a higher level of assurance.
• D. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.

Answer: B

 

NEW QUESTION 17
Reviewing prior audit reports and supporting workpapers before an engagement starts enables an internal auditor to do which of the following?
1. To understand better the activity and processes that will be audited.
2. To identify the audit procedures that will be used during the engagement.
3. To ensure that matters of greatest vulnerability will be addressed.
4. To use the information obtained as evidence in the current engagement.

• A. 1 and 3 only
• B. 4 only
• C. 2, 3, and 4 only
• D. 1 and 4 only

Answer: A

 

NEW QUESTION 18
Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

• A. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
• B. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
• C. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
• D. The auditor recommends improvements for all of the organization's procedures and practices.

Answer: C

 

NEW QUESTION 19
Which of the following factors related to an organization's performance management system would not contribute to the organization's success?

• A. Performance management is linked to competence and knowledge management.
• B. Subordinates and superiors have shared responsibility for the performance management process.
• C. Staff members own the performance management process, thereby ensuring implementation and accountability.
• D. Performance management is integrated into other organizational processes and human resource processes.

Answer: C

 

NEW QUESTION 20
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

• A. Marketplace competition.
• B. Shareholders and investors.
• C. Employees' families.
• D. Working conditions.

Answer: C

 

NEW QUESTION 21
Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

• A. Results from discussions of audit needs with executive management and the audit committee.
• B. A review of audit staff education and training records.
• C. The results of the audit staff's most recent performance reviews.
• D. Information about the audit staff size and composition of comparable organizations.

Answer: A

 

NEW QUESTION 22
An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results, and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?

• A. Condition section.
• B. Criteria section.
• C. Cause section.
• D. Effect section.

Answer: D

 

NEW QUESTION 23
A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm's processes related to hazardous materials should include.
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. III and IV only
• B. II only
• C. I, III, and IV only
• D. I, II, and IV only

Answer: D

 

NEW QUESTION 24
Auditors 1, 2, and 3 work out of various offices. Each must be assigned to one, and only one, of three audit locations (A, B, or C). The cost of sending each auditor to each location is listed below:
Audit Locations
Auditor 1 A B
Auditor 2 $200 $300 $400
Auditor 3 $400 $300 $600
Auditor 4 $200 $200 $500
The minimum cost with which this assignment can be accomplished is:

• A. $900
• B. $1,000
• C. $800
• D. $1,100

Answer: A

 

NEW QUESTION 25
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

• A. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.
• B. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.
• C. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.
• D. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

Answer: A

 

NEW QUESTION 26
An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?
1. They are most effective when using a combination of current and prior engagement findings to draw conclusions.
2. They typically are based on defined procedures such as those found in an accounts payable reconciliation process.
3. They are discrete and not normally shared with senior management or the board.
4. They can rely on evidence taken from the work of other assurance activities across the organization.

• A. 2 and 3.
• B. 1 and 3.
• C. 1 and 2.
• D. 3 and 4.

Answer: A

Explanation:
Section: Volume E

 

NEW QUESTION 27
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

• A. Modeling.
• B. Content analysis.
• C. Evaluation synthesis.
• D. Sampling.

Answer: A

 

NEW QUESTION 28
An internal auditor is testing, on a sample basis, whether invoices paid between January 1 and December 31 are supported by appropriately approved purchase orders. Over 25, 000 invoices were paid during the fiscal year, which runs from the first of April to the end of March. The auditor sets the acceptable risk of assessing control risk too low at 5% and the tolerable deviation rate at 5%. The internal auditor consults the previous audit and sets the expected population deviation rate at 1%. Sample size (77) is selected from a table and rounded up to 80. No sample deviations were found. The upper deviation limit was 3.7%.
Which of the following statements represents a valid conclusion regarding this information?

• A. I am 95% confident that the actual population deviation rate is 3.7%. Since this is less than the tolerable deviation rate, quantitative attribute testing results indicate that the control is effective.
• B. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%. The quantitative attribute testing results indicate that the control is not effective.
• C. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%. Results indicated that the sample size was too small, as no sample deviations were found.
• D. I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%. The quantitative attribute testing results indicate that the control is effective.

Answer: D

 

NEW QUESTION 29
If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violated.

• A. The Standards.
• B. Neither the IIA Code of Ethics nor the Standards.
• C. Both the IIA Code of Ethics and the Standards.
• D. The IIA Code of Ethics.

Answer: B

 

NEW QUESTION 30
A tax consultancy agency retains sensitive personal information regarding its clients. Which of the following is a violation of acceptable privacy practices?

• A. The agency advises clients of their privacy rights before they commence business with the agency.
• B. Employees share client information with coworkers with the permission of the client.
• C. Copies of printed client information not used by the agency are shredded.
• D. The agency only releases client information with management's approval.

Answer: D

Explanation:
Section: Volume B

 

NEW QUESTION 31
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

• A. Evaluating risk management processes.
• B. Recommending accountability for risk management.
• C. Providing assurance that risks are evaluated correctly.
• D. Supporting managers to identify ways to mitigate risks.

Answer: B

Explanation:
Section: Volume E

 

NEW QUESTION 32
Which of the following represents the most useful function of inventory turnover analysis?

• A. Determining the best supplier of raw materials based on cost comparison.
• B. Developing more efficient methods for manufacturing finished products.
• C. Identifying excess inventory, including obsolete inventory.
• D. Creating new staffing positions for inventory support.

Answer: C

 

NEW QUESTION 33
......

Duration, language, and format of IIA-CIA-Part1 Exam

• Format: Multiple choices, multiple answers
• Length of examination: 150 mins
• Number of Questions: 125
• Passing score: 600
• Language: Arabic, Chinese Simplified, Chinese Traditional, Czech, English, French, German, Hebrew, Indonesian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Thai, and Turkish

 

Ultimate Guide to the IIA-CIA-Part1 - Latest Edition Available Now: https://www.validexam.com/IIA-CIA-Part1-latest-dumps.html

2021 Updated Verified Pass IIA-CIA-Part1 Exam - Real Questions & Answers: https://drive.google.com/open?id=1qCBaYBqXfjlQlyClWe0Xd_sufVzhux_D