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  • Exam Name: Essentials of Internal Auditing
  • Last Update: 23-Apr-2024
  • Questions and Answers: 227
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IIA-CIA-Part1 Questions and Answers

Question # 1

A chief audit executive (CAE) is concerned that the internal audit activity is not receiving adequate training and continuing education. Which of the following approaches should the CAE take?

A.

Implement a uniform professional development plan for the internal audit activity.

B.

Create a formal development agreement with each individual staff auditor.

C.

Require each internal auditor to obtain the same professional certifications.

D.

Require training and developmental activities that are sponsored by The HA.

Question # 2

Which of the following accurately describes the concept of inherent risk?

A.

Risk factors that exist when controls are in place and operating effectively

B.

Internal risk factors assuming no controls are in place

C.

Risk factors that cannot be mitigated because they are innate to a process

D.

Combination of internal and external risk factors in their pure state assuming no controls are in place

Question # 3

Which of the following would best describe a control implemented to detect cash register disbursement fraud in a large retail store?

A.

Separate the duties of processing and authorizing refunds on merchandise

B.

Post signs in the register area prompting customers to ask for and examine their sales receipts

C.

Periodically count the cash in the register and compare it to the expected amount

D.

Use cash registers with internal tapes that are tamper proof and that require a manager to process voids or refunds

Question # 4

A new chief audit executive realized that the internal audit charter has not been updated in five years and only includes the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, and the Standards. What mandatory component is missing?

A.

Statement of Independence.

B.

Operating Procedures of Internal Auditing.

C.

Definition of Internal Auditing.

D.

Attestation of Quality Assurance.

Question # 5

An internal auditor believes that a weakness exists in the control environment relating to the delegation of authority and responsibility within the management structure. Which of the following actions should the internal auditor first consider in this matter?

A.

Recommend a control change and obtain management support.

B.

Evaluate the potential Impact on related controls.

C.

Address the risk with senior management and the board.

D.

Develop and communicate the scope and evaluation criteria to be used by management.

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