Free IIA-CIA-Part1 Sample Questions — Certified Internal Auditor - Part 1 The Internal Audit Activitys Role in Governance Risk and Control

Which data analytics competency is critical for new internal auditors to possess in order to plan and perform internal audit engagements in conformance with the Standards?

• A. Describe data analytics and the application of data analytics methods in internal auditing
• B. Apply data analytics methods in internal auditing
• C. Evaluate the use of data analytics in an internal audit
• D. Understand the definition of data analytics only

An internal auditor is testing whether payments to outside contractors have been charged to the proper account. Which of the following sampling methods would be most useful in completing this task?

• A. Haphazard sampling
• B. Probability-proportional-to-size sampling
• C. Attribute sampling
• D. Judgmental sampling

When can an internal audit activity use the statement, "Conforms with the International Standards for the Professional Practice of Internal Auditing"?

• A. The internal audit activity has been in existence for four years; the results of the last three consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics
• B. The internal audit activity has been in existence for 11 years; the results of the last external assessment, performed six years ago, demonstrated general conformance with the Standards and Code of Ethics
• C. The internal audit activity has been in existence for six years; although an external assessment has not yet been performed, the results of the last four consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics
• D. The internal audit activity has been in existence for seven years; the results of the external assessment performed seven years ago and the last six consecutive internal assessments have demonstrated general conformance with the Standards and Code of Ethics

According to IIA guidance, which of the following statements about working papers is false?

• A. They assist in the implementation of recommendations
• B. They provide support for communication to third parties
• C. They demonstrate compliance with auditing standards
• D. They contribute to development of the internal audit staff

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

What is the primary reason a chief audit executive should dedicate time and resources to support continuing professional development of internal audit staff?

• A. To ensure that internal audit staff maintain high overall job satisfaction
• B. To ensure that internal audit staff acquire continuing professional education credits timely
• C. To ensure that top risks are mitigated to an acceptable level
• D. To ensure that internal audit staff have the competency to address high-priority risks

The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions. The CAE was an accounting manager for the organization six months ago. How should she respond to the request?

• A. Decline, if it is a consulting engagement, because she recently worked in the organization's accounting department
• B. Accept, if it is an assurance engagement, as she has been out of the department long enough to not impair objectivity
• C. Inform the accounting department that the engagement can take place in the future, once she has been removed from accounting for a longer period of time
• D. Accept, if it is a consulting engagement with agreed-upon scope and services to be provided by the internal audit activity

An organization established 20 years ago has had its internal audit activity in place for the last three years. Which of the following would allow the internal audit activity to accurately state that it is in conformance with the Standards?

• A. Documented assessment was performed by the audit committee and confirmed conformance
• B. Internal and external assessments are performed annually, and nonconformance results are reported to the board
• C. The independent and objective judgement of the chief audit executive confirmed conformance with the Standards
• D. Documented internal assessments are performed periodically and confirm conformance

An internal audit team is reviewing the effectiveness of an organization's climate change initiative. It has been brought to the engagement supervisor's attention that an auditor on the team has criticized the organization's initiative on social media. The auditor's social media posts could raise concerns about the internal auditor's objectivity during the engagement. Which of the following best describes the threat to objectivity in this situation?

• A. Intimidation
• B. Cultural bias
• C. Advocacy
• D. Economic interest

Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

• A. Internal auditors may conduct a financial effectiveness engagement in a business unit at any point after being transferred from that area
• B. Internal auditors may conclude that a business unit’s current control environment is adequate and effective if the review of the prior year’s workpapers and audit report supports that conclusion
• C. Internal auditors may conduct an engagement in a business unit at any point after providing a training workshop in that area
• D. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results

Which of the following is true about corporate social responsibility (CSR)?

• A. Social and environmental considerations are required parts of an organization's decision making
• B. The Global Reporting Initiative provides standards on required disclosures of CSR
• C. CSR activities are overseen and managed by operational management
• D. Internal auditors can provide assurance on reported sustainability results

A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

• A. Logic test
• B. Check digits
• C. Data integrity tests
• D. Balancing control activities

Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?

• A. description of their job responsibilities
• B. non-disclosure agreement
• C. An annual declaration of commitment to The IIA's Code of Ethics
• D. The internal audit charter

A chief audit executive (CAE) has been asked by the board to evaluate the effectiveness of ethical programs created by management. Which of the following would be the most appropriate action for the CAE to take?

• A. Compare the design of the organization's ethical programs with best practices
• B. Verify that a code of conduct and related policies exist and are communicated
• C. Use employee surveys to assess whether ethical programs are achieving desired outcomes
• D. Compare the cost of the ethical programs with the achieved outcomes

An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant’s management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

• A. The inherent risk will be mitigated to a level lower than the residual risk
• B. The inherent risk will be reduced to an acceptable level
• C. The residual risk will be reduced to an acceptable level
• D. The residual risk will be eliminated

Which of the following best demonstrates the board of directors’ governance over internal control?

• A. The board bears direct responsibility for developing and implementing the internal control system
• B. The majority of board members are experienced and qualified members of the organization’s executive management team
• C. The board may be assisted by an audit committee, chaired by the chief audit executive
• D. The board is responsible for succession planning for the CEO and other key members of the executive management team

Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?

• A. The quality assurance and improvement program identified several opportunities for the internal audit activity to make improvements
• B. In lieu of an external assessment, the internal audit activity performed a self-assessment with independent external validation
• C. During an internal quality assessment, it was identified that rotational auditors often perform consulting engagements for areas of the organization where they had previous responsibilities
• D. External assessments are performed every five years by a competent internal audit team from the organization's parent company

According to IIA guidance, which of the following statements is true regarding an effective governance process?

• A. It stipulates that risk needs to be considered when making strategic decisions
• B. It encourages strict segregation of the risk management and internal control processes
• C. It relies on effective risk management when establishing the organization’s risk appetite
• D. It relies on the board to devise ways to communicate the effectiveness of internal controls

Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

• A. It considers tolerable deviation rate more effectively than does statistical sampling
• B. Sampling risk will be accurately quantified through non-statistical sampling
• C. Non-statistical sample results must be projected to the population
• D. Lesser evidence is required to support a conclusion than for statistical sampling

Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation?

• A. Fraud specialists are better at using computer-assisted audit techniques
• B. Fraud specialists are better equipped to act as an expert witness in court
• C. Fraud specialists are better able to properly apply due professional care
• D. Fraud specialists are better at using crime scene investigation techniques