[Jan 04, 2024] Dumps Collection IIA-CIA-Part1 Test Engine Dumps Training With 230 Questions
IIA IIA-CIA-Part1 Dumps - 100% Cover Real Exam Questions
NEW QUESTION # 118
Which of the following best describes the trait that an internal auditor exercises when
considering the extent of work needed to achieve the engagement's objectives?
- A. Due professional care.
- B. Proficiency.
- C. Independence.
- D. Objectivity.
Answer: A
NEW QUESTION # 119
Which of the following would be most relevant regarding the internal control environment?
- A. Comparing and validating internal performance with external benchmarking.
- B. Assessing controls over computerized applications.
- C. Maintaining and reviewing detailed financial records.
- D. Documenting the organizational structure.
Answer: D
NEW QUESTION # 120
During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?
- A. Definition of Internal Auditing.
- B. The IIA's Code of Ethics.
- C. MA Standards.
- D. Internal audit charter.
Answer: D
NEW QUESTION # 121
An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?
- A. The invoices have zero reliability.
- B. The invoices have high reliability.
- C. The invoices have medium reliability.
- D. The invoices have low reliability.
Answer: C
NEW QUESTION # 122
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?
- A. Utilize dedicated and encrypted network connections.
- B. Install a software inventory management application.
- C. Apply antivirus and patch management software.
- D. Utilize secure socket layer encryption.
Answer: B
Explanation:
Section: Volume E
NEW QUESTION # 123
Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?
- A. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.
- B. CAATs are more objective than the traditional methods in interpreting the results.
- C. CAATs can process the results faster and thus give a higher level of assurance.
- D. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 124
During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management's actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:
- A. Inform the external auditors and seek their guidance.
- B. Inform the external auditors and remove the associated work from the internal audit scope.
- C. Compare the recommended changes against the changes made by management and advise management which action to take.
- D. Proceed with the audit engagement and assess the changes actually implemented by management.
Answer: D
NEW QUESTION # 125
The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance,which of the following qualitative metrics would be appropriate for the CAE to use?
1.Average client customer satisfaction score for a given year.
2.Client survey comments on how to improve the IAA.
3.Auditor interviews once an audit has been completed.
4.Percentage of audits completed within 90 days.
- A. 2 and 3.
- B. 1 and 3.
- C. 3 and 4.
- D. 1 and 2.
Answer: A
NEW QUESTION # 126
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. 3 minutes.
- B. 5 minutes.
- C. 4 minutes.
- D. 2 minutes.
Answer: C
NEW QUESTION # 127
Which of the following should be incorporated in a risk management policy?
I. Boundaries and limit structures.
II. Requirements for reporting risk.
III. Risk authorities.
- A. II and III only
- B. I and III only
- C. I, II, and III.
- D. I and II only
Answer: C
NEW QUESTION # 128
A computer system automatically locks a user's account after three unsuccessful attempts to log on. Which type of control does this scenario represent?
- A. Corrective control.
- B. Preventive control.
- C. Detective control.
- D. Compensating control.
Answer: B
NEW QUESTION # 129
A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?
- A. Monitoring activities.
- B. Control activities.
- C. Control environment.
- D. Information and communication.
Answer: C
NEW QUESTION # 130
A senior manager asks the chief audit executive (CAE) to explain why statistical sampling is the best method to use in conducting an internal audit. Which advantages should the CAE point to in order to justify the internal audit activity's (IAA) use of statistical sampling?
- A. Statistical sampling allows for the selection of a minimum sample size, provides a quantitative expression of the IAA's sampling results, and supports extrapolation.
- B. Statistical sampling sets limits on resources used for the IAA, allows for a subjective interpretation of the IAA's sampling results, and supports The Institute of Internal Auditors' requirements for using questionnaires as a sampling tool.
- C. Statistical sampling itself identifies root causes of issues, utilizes a qualitative method for analyzing results, and supports engagement objectives through the use of external benchmarking.
- D. Statistical sampling allows for evaluation of all organizational data at once, increases the likelihood that risks are immediately identified, and does not require a level of tolerable misstatement or margin of error.
Answer: A
NEW QUESTION # 131
Which of the following might alert an internal auditor to the possibility of fraud in a division?
1. The division is not scheduled for an external audit this year.
2. Sales have increased by 10 percent.
3. A significant portion of management's compensation is directly tied to reported net income of the division.
- A. 1 and 2 only
- B. 3 only
- C. 1, 2, and 3
- D. 1 only
Answer: B
Explanation:
Section: Volume C
NEW QUESTION # 132
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
- A. Feedback control data.
- B. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
- C. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
- D. Irrelevant and argumentative information.
Answer: A
NEW QUESTION # 133
Which of the following should play a leading role in overseeing the ethical atmosphere of an organization?
- A. Operating management
- B. Internal audit activity
- C. Board of directors
- D. Senior management
Answer: C
NEW QUESTION # 134
The chief audit executive (CAE) has decided to outsource an audit of the organization's cloud governance in the annual audit plan. Why would the CAE outsource this audit?
- A. Lack of audit planning.
- B. Lack of due professional care.
- C. Lack of internal audit staff proficiency.
- D. Lack of internal assessments.
Answer: C
NEW QUESTION # 135
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?
- A. Evaluation synthesis.
- B. Content analysis.
- C. Modeling.
- D. Sampling.
Answer: C
Explanation:
Section: Volume C
NEW QUESTION # 136
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