IIA-CIA-PART1 Online Practice Questions and Answers

Which of the following would be the most useful in developing an annual audit plan?

A. General purpose audit software.

B. Voting software and hardware.

C. Flowcharting and data capture software.

D. Risk assessment software.

Overall audit efficiency is enhanced between the internal and external audit functions when:

A. Internal audit coverage is reduced to avoid potential conflicts of interest.

B. Audits of the same department are conducted at different times.

C. The internal audit department reviews functions or departments prior to the external audit.

D. External audit scope is reduced based on the internal audit department's activities.

When reviewing operational risk for a department whose manager adopts a laissez-faire style of

leadership, it is most important for the internal auditor to verify that:

A. Employee decisions follow department and company guidelines.

B. The manager considers employees' input when designing new procedures.

C. Employees are empowered to deal with unusual or emergency situations.

D. Management has adopted an open-door policy to assist with communication.

In a well-developed management environment, the internal audit activity would.

A. Report the results of audit engagements to line management as well as to senior management.

B. Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.

C. Interface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work.

D. Focus on the maintenance of accounting controls (such as segregation of the duties of authorization, recording, and custody) and report results to the audit committee.

Which aspect of the audit function would be most impacted by a lack of coordination between an organization's internal and external auditors?

A. Responsiveness.

B. Timeliness.

C. Effectiveness.

D. Efficiency.

Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation. What should the internal audit activity do?

A. Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.

B. Perform the engagement and make appropriate recommendations for policies and procedures.

C. Turn down the engagement because recommending controls would impair future objectivity regarding this client.

D. Turn down the engagement because an operational audit should not review policies and procedures.

Which of the following would be outside the scope of acquiring and developing human resources for an internal audit department?

A. Requiring audit staff to participate in continuing education activities.

B. Writing job descriptions for audit staff, audit managers, and other auditing positions.

C. Conducting individual counseling sessions regarding professional development and performance.

D. Evaluating auditors' compliance with standards and level of audit effectiveness.

Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?

A. Appropriate compliance coverage in the annual audit plan.

B. Annual review of the audit charter by management.

C. Appropriate definition of internal audit scope and responsibility in the charter.

D. Assurance of internal audit objectivity and organizational independence by the board.

An internal auditor is planning an audit of an organization where temporary employees are suspected of receiving pay for hours they have not worked. Which of the following tasks should not be performed at this stage in the audit?

A. Interviewing the manager who requested the audit engagement.

B. Obtaining a copy of the contract between the organizations and the temporary employment agency.

C. Interviewing shift supervisors about their employees' attendance.

D. Preparing an engagement program.

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.