IIA-CIA-Part1 Exam Practice Test Instant Access

Question 1

Which level of corporate social responsibility does whistleblowing in companies primarily support?

AEthical responsibility.

BEconomic responsibility.

CLegal responsibility.

DDiscretionary responsibility.

Answer : A

Whistleblowing is aligned with ethical responsibility, encouraging transparency and ethical behavior within organizations. IIA guidance on corporate social responsibility emphasizes that ethical responsibility involves safeguarding stakeholders' interests.

Question 2

During a payroll audit, a staff internal auditor suspects that signatures on some of the documents being sampled for examination are not authentic. Which of the following actions should the auditor take before proceeding with the examination?

ASuggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.

BKeep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.

CDiscuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.

DReview the suspicious documents with the chief audit executive and seek advice concerning further examination.

Answer : D

The best course of action is for the internal auditor to consult with the chief audit executive (CAE) regarding the suspicious documents. This step aligns with IIA standards, which advise consulting senior audit leaders in cases of potential fraud to ensure proper investigation and avoid alerting those who might be involved.

Question 3

According to IIA guidance, which of the following statements is true of assurance services provided by the internal audit activity?

AInternal auditors cannot assess an operation for which they were responsible within the previous year.

BManagement of the area under review must agree with the engagement objectives, scope, and techniques.

CThe engagement results will vary in form and content depending upon the needs and wishes of the engagement client.

DThe only parties involved in the engagement are the internal auditor and management of the area under review.

Answer : A

IIA standards require that internal auditors avoid engagements in areas where they recently held operational responsibility, typically within a one-year period, to maintain independence and objectivity.

Question 4

An internal auditor is reviewing employee travel expenses from the previous six months for fraud. Which of the following tests would best detect instances where personal travel has been claimed?

AVerifying whether claims have been properly authorized for payment.

BVerifying whether claims are properly supported by invoices or other documents.

CConfirming that all claims are within the limits of the organization's travel policy.

DReconciling claims against business trip requests that were approved by supervisors.

Answer : D

Reconciling claims with business trip requests approved by supervisors is effective in detecting unauthorized or personal travel claims, as it ensures travel expenses align with actual business needs, per IIA guidelines on fraud detection and control validation.

Question 5

Which of the following statements is true regarding external quality assessments?

AThey can be performed by self-assessment with independent external validation, but they must be performed every three years.

BWhen a new chief audit executive (CAE) is appointed, an external quality assessment should be undertaken during the CAE's first year of office.

CAn external quality assessment must be conducted at least once every five years by a qualified, independent assessor or assessment team.

DAn external assessment by a qualified professional from outside of the organization can be performed in place of an internal assessment.

Answer : C

IIA standards require that external quality assessments be conducted at least once every five years by an independent assessor. This ensures adherence to quality standards and strengthens the objectivity of the internal audit function.

Question 6

Which of the following is an appropriate role for the internal audit activity?

AEnsuring the organization's key risks are managed through appropriate controls.

BAssisting the organization in maintaining effective controls.

CImplementing new controls to promote continuous improvement.

DValidating control assessments performed by the external auditor.

Answer : B

According to IIA standards, the internal audit activity should assist in maintaining effective controls but should not assume management's responsibilities, such as implementing or ensuring controls, to preserve its independence.

Question 7

An internal auditor in a newly established internal audit activity identifies many control weaknesses and raises a number of high-priority recommendations in her first few audit engagements. The internal auditor is concerned that there seems to be a poor understanding by management of risk and control. Which of the following is the most likely reason for this?

APoor performance by individual operational managers in the areas audited.

BUnrealistic expectations by the internal audit activity on the quality of risk management and control.

CA lack of an effective organizational framework for risk management and control.

DA failure by the internal audit activity to identify and manage the organization's risks.

Answer : C

The identification of multiple control weaknesses and high-priority recommendations often indicates a systemic issue with the organizational framework for risk management. A strong organizational framework provides guidance on risk management and controls, aligning with IIA guidelines on the importance of an integrated approach to risk management.

IIA-CIA-Part1 Certified Internal Auditor Exam Practice Test