[Mar-2022] IIA-CIA-Part1 Exam Dumps Pass with Updated 2022 Essentials of Internal Auditing
Free IIA-CIA-Part1 Exam Dumps to Pass Exam Easily
NEW QUESTION 81
A company produces a product that consists of materials X, Y, and Z.
The product is mixed so that:
- The quantity of material X used is one-third more than that of material Y.
- The quantity of material Y used is one-fourth less than that of material Z.
If the company used 24,000 units of material Z during a period, what is a reasonable estimate of the amount of material X used?
- A. 32,000
- B. 18,000
- C. 24,000
- D. 8,000
Answer: C
NEW QUESTION 82
Auditors 1, 2, and 3 work out of various offices. Each must be assigned to one, and only one, of three audit locations (A, B, or C). The cost of sending each auditor to each location is listed below:
Audit Locations
Auditor 1 A B
Auditor 2 $200 $300 $400
Auditor 3 $400 $300 $600
Auditor 4 $200 $200 $500
The minimum cost with which this assignment can be accomplished is:
- A. $1,000
- B. $900
- C. $1,100
- D. $800
Answer: B
NEW QUESTION 83
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
- A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
- B. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
- C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
- D. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
Answer: D
NEW QUESTION 84
The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?
- A. "Completed with the advance certification of the External Assessors Association for Auditing Review."
- B. "Conforms with the International Standards for the Professional Practice of Internal Auditing."
- C. "Compliant with all domestic and international legal statutes, and certified quality assured for ten years."
- D. "Certified 100% accuracy, per the International Standards of External Assessment."
Answer: B
NEW QUESTION 85
Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?
- A. Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
- B. Security cameras that monitor cash handling at the register are not functioning.
- C. The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.
- D. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.
Answer: D
NEW QUESTION 86
Which of the following is most likely to be considered a control weakness?
- A. Department managers initiate purchase requests that must be approved by the plant superintendent.
- B. Buyers promptly update the official vendor listing as new supplier sources become known.
- C. Purchase orders are typed by the purchasing department using prenumbered forms.
- D. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
Answer: B
NEW QUESTION 87
The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process,which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?
- A. Cross-functional flow chart.
- B. Internal control checklist.
- C. Segregation of duties matrix.
- D. Procurement employee survey.
Answer: A
NEW QUESTION 88
Once the cause of a problem has been identified, the next step is to:
- A. Generate alternative solutions.
- B. Consider the reaction of competitors to various courses of action.
- C. Select a solution.
- D. Identify the problem.
Answer: A
NEW QUESTION 89
During a review of data center physical security and environmental controls,an auditor should ensure that:
I. Visitors are accompanied by authorized personnel at all times. II.Only developers and operators have access to the data center. III.Fire suppression equipment is tested periodically.
IV.Fire and water detectors have been installed.
- A. I and IIIonly
- B. I,III,and IVonly
- C. II,III,and IVonly
- D. II and IVonly
Answer: B
NEW QUESTION 90
Which of the following examples best describes how an internal auditor should behave while listening to an engagement client talk about human resource process problems?
- A. The auditor should gather their thoughts in order to have a response immediately ready for the client.
- B. The auditor should integrate the information the client provides with the information that is already known.
- C. The auditor should make an internal note of the client's gestures, demeanor, and body language, rather than paying close attention to the content of the discussion.
- D. The auditor should mentally plan the next steps of the audit engagement.
Answer: B
NEW QUESTION 91
During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?
- A. Conclude that the budget was unreasonably set and accept the deviations.
- B. Perform alternative forms of analytical procedures which provide no deviations.
- C. Gather additional information to determine the cause of the deviations.
- D. Report the deviations immediately to the audit committee.
Answer: C
Explanation:
Section: Volume E
NEW QUESTION 92
Which of the following is the most common method of fraud detection?
- A. Detective controls built into the daily processes.
- B. Tips received from employees or citizens.
- C. Analytical reviews of high-risk areas.
- D. Unannounced audits or reviews of programs or departments.
Answer: B
NEW QUESTION 93
An organization's chief audit executive (CAE) has been asked to conduct an assurance engagement for an information technology system that was subject to a consulting engagement in the prior year. How should the CAE respond?
- A. Delay the assurance engagement to ensure that there is a two-year period between the engagements.
- B. Decline the engagement because independence and objectivity would be impaired.
- C. Accept the engagement and assign different auditors to conduct the assurance services.
- D. Facilitate a control self-assessment workshop instead of performing an assurance engagement.
Answer: C
Explanation:
Section: Volume C
Explanation
NEW QUESTION 94
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts.
Which of the following would most likely be the reason for the high volume of complaints?
- A. Poor controls in the invoice approval processes.
- B. An ineffective customer service department.
- C. Check tampering by an employee.
- D. Submission of fraudulent expense reports.
Answer: C
NEW QUESTION 95
When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:
- A. A control risk.
- B. An inherent risk.
- C. An audit risk.
- D. A residual risk.
Answer: C
NEW QUESTION 96
An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
- A. Ensure that adequate edit and reasonableness checks are built into the automated system.
- B. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
- C. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
- D. Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 97
A quantitative risk assessment model has all of the following advantages except:
- A. Providing documentation for the chief audit executive, who must defend the long-range audit plan.
- B. Accommodating a large number of risk factors in the assessment.
- C. Providing a systematic method of applying weightings to risks and priorities.
- D. Removing the need for judgment on the part of the chief audit executive.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 98
Which of the following would be an appropriate outcome of a quality assurance and improvement program in an internal audit activity?
1. Modification of resources.
2. Corrections to procedures.
3. Changes in processes.
4. Implementation of new technology.
- A. 1, 2, and 3 only
- B. 3 and 4 only
- C. 1, 2, 3, and 4
- D. 2 and 4 only
Answer: C
NEW QUESTION 99
A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?
- A. She may participate, but she must be supervised by the auditor in charge.
- B. She may participate for training purposes, to build her knowledge of the IAA.
- C. She may participate, but only after she has completed one year with the IAA.
- D. She may participate, because she did not previously work in the Human Resources Department.
Answer: D
NEW QUESTION 100
Which of the following is the best way to detect fraud?
- A. Conduct anti-fraud training.
- B. Implement process controls.
- C. Activate a whistleblower hotline.
- D. Perform background investigations.
Answer: C
NEW QUESTION 101
A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed. In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:
- A. Periodically carry out a quality assessment of the environmental audit activity.
- B. Discuss with the environmental auditors the results of their reviews.
- C. Include a review of environmental issues in some internal audit engagements.
- D. Review the recommendations in all environmental audit reports.
Answer: A
Explanation:
Section: Volume B
NEW QUESTION 102
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?
- A. Compliance objectives.
- B. Strategic objectives.
- C. Reporting objectives.
- D. Operational objectives.
Answer: D
Explanation:
Section: Volume E
NEW QUESTION 103
......
Duration, language, and format of IIA-CIA-Part1 Exam
- Format: Multiple choices, multiple answers
- Number of Questions: 125
- Passing score: 600
- Language: Arabic, Chinese Simplified, Chinese Traditional, Czech, English, French, German, Hebrew, Indonesian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Thai, and Turkish
- Length of examination: 150 mins
IIA-CIA-Part1 Exam Dumps, IIA-CIA-Part1 Practice Test Questions: https://www.pdf4test.com/IIA-CIA-Part1-dump-torrent.html
Free IIA-CIA-Part1 Study Guides Exam Questions and Answer: https://drive.google.com/open?id=1ZaVX270UqoBIGXVsRwESyWe_376ADSCC
