Latest Mar 04, 2023 IIA-CIA-Part1 Brain Dump: A Study Guide with Tips & Tricks for passing Exam
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NEW QUESTION 255
Which of the following is a consulting service the internal audit activity can perform with respect to the organization's risk management'?
- A. Evaluating principal risk reporting
- B. Deciding on the appropriate risk response
- C. Delivering assurance on the risk management system
- D. Facilitating risk assessment workshops
Answer: D
NEW QUESTION 256
The best reason for separating the cash-receiving function from the related record-keeping function is to:
- A. Segregate cash payments from cash receipts.
- B. Provide accountability for cash received.
- C. Improve physical security over the cash-receiving function.
- D. Minimize misappropriations in cash receipts.
Answer: D
NEW QUESTION 257
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. 1 and 2.
- B. 3 and 4.
- C. 2 and 3.
- D. 1 and 3.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 258
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.
- A. 1, 2, 3, and 4
- B. 1, 2, and 3 only
- C. 1 and 4 only
- D. 2 and 3 only
Answer: B
NEW QUESTION 259
Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?
- A. The internal auditor concluded that the engagement objectives would include assessing the effectiveness of the payroll process controls.
- B. The internal auditor and engagement client established an understanding that the scope would include the new payroll system project.
- C. The payroll system engagement was scheduled as a result of internal audit's risk-based annual planning process.
- D. The internal auditor acknowledged the engagement client's satisfactory performance in the final engagement results that were communicated to senior management and the board.
Answer: B
NEW QUESTION 260
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1.Acceptance of CAATs findings by entity management.
2.Computer knowledge and expertise of the auditor.
3.Time constraints.
4.Level of audit risk.
- A. 1 and 4
- B. 1,2,and 3
- C. 2,3,and 4
- D. 2 and 3 only
Answer: C
NEW QUESTION 261
During the planning phase of an audit of suspected overbilling on contracts for security services, an internal auditor should perform all of the following except:
- A. Obtain a copy of the contract between the two organizations.
- B. Prepare an engagement program.
- C. Interview the manager who requested the audit engagement.
- D. Interview an official of the security services company to determine the cause of recent increases in billings for services.
Answer: D
NEW QUESTION 262
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. 2, 3, and 4 only.
- B. 1, 3, and 4 only.
- C. 1, 2, and 3 only.
- D. 1, 2, and 4 only.
Answer: B
NEW QUESTION 263
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. 1 and 2.
- B. 3 and 4.
- C. 2 and 3.
- D. 1 and 3.
Answer: C
NEW QUESTION 264
Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?
- A. A staff auditor conducted a test of 85 non-statistical sample items, selected randomly, and 5 are not in compliance with organizational policy.
- B. A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.
- C. A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.
- D. Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.
Answer: C
NEW QUESTION 265
A member of the IT department transfers to the internal audit department. A few months after transferring, the new auditor volunteers to assist in an assurance engagement for the IT department. According to the Standards, how should the chief audit executive respond?
- A. Accept the offer because the internal audit charter grants the internal auditor authority to maintain objectivity.
- B. Accept the offer because the internal auditor maintains an independent mental attitude and is therefore objective.
- C. Decline the offer because the internal auditor recently transferred from the IT department.
- D. Decline the offer because the internal auditor subordinated professional judgment, and objectivity is therefore impaired.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 266
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?
- A. The internal control structure has significant weaknesses.
- B. The purchasing agents have convinced management to adopt a policy of paying vendors on amore timely basis in order to avoid incurring penalty charges.
- C. The standard of living of one of the purchasing agents has increased.
- D. The cost of goods procured seems to be excessive in comparison with previous years.
Answer: B
NEW QUESTION 267
During an internal audit,an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.
Which of the following tests would best help the internal auditor detect fraudulent activity?
- A. Search for gaps in check numbers.
- B. Compare vendor summaries.
- C. Review raw material purchase quantities.
- D. Check inventory levels.
Answer: D
NEW QUESTION 268
When developing the annual audit plan and reviewing risk assessment priorities, a chief audit executive should always identify the:
- A. Potential recommendations for each auditable activity.
- B. Persons to whom engagement reports will be communicated.
- C. Engagement procedures to be used during the engagements.
- D. Internal audit resources required to achieve the audit plan.
Answer: D
NEW QUESTION 269
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering department. What is the most appropriate course of action for the CAE to take?
- A. Advise management to accept the assessed risk until the internal auditors are able to review the area adequately.
- B. Recruit internal auditors with the required competencies and wait until they are employed before including this audit on the internal audit plan.
- C. Proceed with a review of the engineering department but supplement the internal audit team with nonauditors from an external engineering company who have the required skills to assist
- D. Include the engineering department on the audit plan, use the available internal audit resources to conduct the review, and exclude procedures that cannot be adequately assessed.
Answer: B
NEW QUESTION 270
An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?
- A. A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.
- B. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
- C. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.
- D. A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.
Answer: C
NEW QUESTION 271
A fast-food company is developing a computer simu-lation involving arrival time at a drive-through restaurant. The distribution for arrival times is:
Time Single-Digit Random
Between Arrivals Probability Number Assigned
2 minutes
0.1 0
3 minutes
0.2 1,2
4 minutes
0.3 3,4,5
5 minutes
0.4 6,7,8,9
Six random numbers are selected to represent the arrival of six cars: 1,6,9,0,5,6. What is the mean time between arrivals in this run of the simu-lation model?
- A. 5 minutes.
- B. 2 minutes.
- C. 4 minutes.
- D. 3 minutes.
Answer: C
NEW QUESTION 272
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What is IIA-CIA-Part1 Exam
The revised CIA Part 1 exam is well aligned with the IIA's International Specialized Practice Framework (IPPF) and also includes 6 areas that cover the fundamentals of internal accounting; autonomy and neutrality; efficacy and appropriate specialized treatment; quality assurance and renewal programs; governance, threat tracking and even control; and even the threat of fraud. The first part examines the understanding, skills and also the capabilities of the perspectives associated with the International Specifications for Household Accounting Specialized Technique, in particular the characteristic standards (1000, 1100, 1200 and 1300 series), as well as the criteria performance 2100.
Aspects of the IPPF are included such as the purpose of internal auditing and the basics of expert internal auditing technique. The program offers a higher rating with the IIA performance standards. The test covers the distinctions between obtaining and seeking advice from compromises. The review is about the appropriate disclosure of consistency with respect to non-conformance to specifications. The most important area is “Threat Governance, Management and Control”, which represents 35% of the audit. Part of the exam requires candidates to demonstrate a basic understanding of the concepts; another section requires candidates to demonstrate mastery of their knowledge, skills, and abilities.
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