Online Access Free IIA-CIA-Part1 Exam Questions

An electrician visits a client to assess the scope of work. After the visit, the sales office compiles and sends the client a proposal based on the electrician ' s estimation and approved price list. The internal auditor notices that in the last six months, the number of cancelled proposals has increased substantially. Which of the following is a fraud risk scenario that the auditor should consider in this situation?

• A.There is a new competitor in the area who offers better prices.
• B.Some electricians may be offering clients opportunities for reduced fees if they pay with cash.
• C.An unauthorized person may be modifying client data and cancelling the proposals.
• D.Sales representatives may be manipulating the proposals to include additional costs.

The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?

• A.The internal audit charter does not describe the authority of the internal audit activity
• B.The internal audit charter does not identify which audit services are outsourced
• C.The internal audit charter has not been approved by the board within the past year
• D.The internal audit charter has not been reviewed by the legal department

In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?

• A.The actions of upper management in response to the internal audit activity ' s reporting
• B.Conflicts of interest within the organizational structure of the senior management.
• C.The alignment of management decisions with the level of risk the organization is willing to accept.
• D.The effectiveness of process-level and transaction-level controls.

Which of the following best describes the differences between internal auditors and external auditors?

• A.External auditors are required to hold an accounting designation and are responsible for continuing their education, while internal auditors are required to hold an internal audit designation.
• B.External auditors are not employees of the organization, while internal auditors are employees who have in-depth knowledge of the business, making their opinion more reliable to the board and senior management.
• C.External auditors focus on the accuracy and understandability of financial statements, while internal auditors help the organization accomplish its objectives by evaluating and improving the effectiveness of the control process.
• D.External auditors are concerned about misstatements in the organization ' s financial statements, while internal auditors are concerned about fraudulent activities that could impact the organization's financial statements

An organization grants its internal auditors authority to access sensitive confidential information so the auditors may analyze data and conduct effective assurance engagements.
This effectively demonstrates support for which of the following fundamental principles of internal auditing?

• A.Integrity.
• B.Proficiency and due professional care.
• C.Confidentiality.
• D.Independence.