Pass Your Certified Internal IIA-CIA-Part1 Exam on Dec 24, 2023 with 230 Questions
IIA-CIA-Part1 Free Exam Study Guide! (Updated 230 Questions)
IIA-CIA-Part1 exam is an important certification for individuals who are looking to pursue a career in internal auditing. Essentials of Internal Auditing certification is globally recognized and highly valued by employers. IIA-CIA-Part1 exam covers a wide range of topics related to internal auditing and is designed to test the knowledge and skills required for individuals to perform their duties effectively.
NEW QUESTION # 80
What conclusion can be reached by comparing a random sample of vendor invoices to purchase orders?
- A. No duplicate invoices were received.
- B. Authorized invoices were paid.
- C. Invoices were for authorized purchases.
- D. No duplicate payments were made.
Answer: C
NEW QUESTION # 81
Which of the following is true regarding the purpose of the COSO enterprise risk management framework?
It is a process that is ongoing and flows throughout the organization.
It contributes to the formulation of the organization's mission and vision.
It enables internal audit to provide reasonable assurance to an organization's management
and the board.
It enables the management of risks within an organization's risk appetite.
- A. 1, 2, and 3 only.
- B. 1, 3, and 4 only.
- C. 1, 2, and 4 only.
- D. 2, 3, and 4 only.
Answer: B
NEW QUESTION # 82
Which of the following should be the first step that an internal auditor takes to establish data integrity when building an audit working copy of a large database?
- A. Verify that all required data was downloaded.
- B. Ensure that the data is efficiently organized within the database.
- C. Review the data for statistical patterns.
- D. Search for anomalies in the extracted information.
Answer: A
NEW QUESTION # 83
Which of the following best describes how the increased use of computerization may impact an auditor's assessment of the risk of fraud?
- A. Audit trails are less effective.
- B. Computer controls are generally less effective than human review.
- C. Access to assets may be available to information systems personnel as well as to computer users.
- D. Overrides of key controls may require less collaboration.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION # 84
Which of the following factors is most important for internal auditors to consider when prioritizing fraud risks?
- A. The organization's code of conduct.
- B. The organization's culture
- C. The organization's code of ethics.
- D. The organization's competition.
Answer: B
NEW QUESTION # 85
According to the International Professional Practices Framework, a primary purpose of evaluating the adequacy of an organization's risk management, control, and governance processes is to determine if it:
- A. Mitigates inherent risk.
- B. Assures the reliability and integrity of information used by management.
- C. Provides reasonable assurance that the organization's objectives will be met.
- D. Was designed to ensure compliance with policies, plans, procedures, laws, and regulations.
Answer: C
NEW QUESTION # 86
Some of an organization's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:
- A. Edit controls on the payroll file.
- B. Reconciliation of paychecks to the bank account.
- C. Validation of hash totals.
- D. Appropriate segregation of duties for batch approval.
Answer: C
NEW QUESTION # 87
Which of the following should be considered in developing a risk and control model for use in an engagement?
- A. The risk and control model should be globally accepted by the profession.
- B. The risk and control model should be strictly adhered to in performing the engagement.
- C. The risk and control model should be developed individually by the auditor for use on individual audit projects within the planned engagement.
- D. The risk and control model should be tailored to the organization that will be the subject of the engagement.
Answer: B
NEW QUESTION # 88
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. The purchasing agent invests in a publicly traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.
- C. Normal operational purchases fall in the range from $500 to $1, 000 with two signatures required for purchases over $1, 000.
- D. Pre-numbered blank purchase orders are secured within the purchasing department.
Answer: A
NEW QUESTION # 89
An external quality assurance review which was authorized by the chief audit executive (CAE) indicated significant findings from the Standards. To whom should the final results of the quality assurance review be reported?
- A. Confidentially to the CAE only.
- B. The CAE with copies to the board and senior management.
- C. To the senior management with a copy to the board.
- D. To the board with copies to the external auditor or regulatory oversight body.
Answer: B
NEW QUESTION # 90
What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?
- A. Evaluation of the adequacy of internal audit policies and procedures.
- B. Confirmation that past audit recommendations have been implemented.
- C. Detailed objectives for internal audit engagements.
- D. Performance appraisals of the internal audit staff.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 91
Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:
- A. Edit controls on the payroll file.
- B. Reconciliation of paychecks to the bank account.
- C. Validation of hash totals.
- D. Appropriate segregation of duties for batch approval.
Answer: C
NEW QUESTION # 92
The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?
I. Board of directors.
II. Senior management.
III. Shareholders.
IV. External auditors.
- A. I and II only
- B. I, III, and IV only
- C. II only
- D. I, II, and III only
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 93
Which of the following situations allows for the most objectivity on the part of an internal auditor?
- A. Drawing conclusions from a sample of financial transactions.
- B. Comparing current environmental activities against legislation.
- C. Performing a risk assessment of a new financial instrument.
- D. Assessing testing procedures in a new computer system.
Answer: B
NEW QUESTION # 94
Which of the following scenarios exemplifies a potential internal control weakness?
- A. The same employee who receives cash from customers prepares a prelisting of cash receipts.
- B. The same employee who restrictively endorses checks received from customers prepares the bank's check deposit slips.
- C. The same employee who makes deposits at the bank prepares the monthly bank reconciliation.
- D. The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.
Answer: C
NEW QUESTION # 95
Internal auditors must exercise due professional care by considering which of the following?
Cost of assurance in relation to potential benefits.
Adequacy and effectiveness of governance, risk management, and control processes.
Management's competency level in the area being evaluated.
Probability of significant errors, fraud, or noncompliance.
- A. 2,3,and 4 only
- B. 1,2,and 4 only
- C. 1 and 2 only
- D. 1,2,and 3 only
Answer: B
NEW QUESTION # 96
An internal auditor was assigned to work in the procurement department for six months to gam m-depth knowledge about the procurement process Which of the following personnel development practices was applied in this situation?
- A. Outbound rotation
- B. Inbound rotation
- C. Cosourcing
- D. Guest auditor
Answer: A
NEW QUESTION # 97
According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?
1. Obtain and review all purchasing-related audit reports issued within the past year.
2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.
3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.
4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.
- A. 3 and 4.
- B. 1 and 2.
- C. 2 and 4.
- D. 1 and 3.
Answer: B
NEW QUESTION # 98
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 and IV only.
- B. I and II only.
- C. II, III, and IV only.
- D. I, II, and III only.
Answer: D
NEW QUESTION # 99
According to the International Professional Practices Framework, risk is:
I.Defined as the negative effect of events that are expected to occur.
II.
Measured in terms of consequences.
III.
Measured in terms of likelihood.
- A. I and II only.
- B. II and III only.
- C. I, II, and III.
- D. I only.
Answer: B
NEW QUESTION # 100
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. 3 and 4.
- B. 1 and 2.
- C. 2 and 3.
- D. 1 and 3.
Answer: C
NEW QUESTION # 101
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Prerequisites of IIA-CIA-Part1 Exam
if you don't have a bachelor's degree, you can still take the CIA, which offers you to meet BETWEEN the following standards:
- IIA Global will definitely need to see evidence of your training and learning when you enroll, such as duplicates of your A-level or GCSE certificates/achievements. If you cannot provide this proof later, you will not be able to register.
- 3 levels A or higher or comparable (plus two years of internal audit experience) ACCA credentials.
- 4 years of experience in internal audit (plus a second training and apprenticeship).
Before you can earn CIA classification, you must also have some internal audit experience or a relevant role. You must adhere to the following:
- Level A or comparable and five years of experience.
- A diploma and 2 years of experience.
- Seven years of experience (plus additional training).
IIA-CIA-Part1 (Essentials of Internal Auditing) Certification Exam is a globally recognized certification offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part1 exam is designed to test the candidate's knowledge of internal auditing principles and practices. It covers the essential topics that every internal auditor should know, including governance, risk management, internal control, and audit tools and techniques.
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