IIA_CIA_PART1 questions • Exam prepare

Exam contains 706 questions

Page 10 of 118

Question 55 🔥

Which of the following combinations of conditions is most likely a red flag for fraud?

Which database solution meets these requirements?

A. The practice of surprise audits and the implementation of an employee support program.

B. Hiring an employee with a prior fraud conviction and yearly management review.

C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Discussion of the question

Question 56 🔥

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?

Which database solution meets these requirements?

A. 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.

B. 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.

C. Statistical sampling allows for the selection of a minimum sample size, provides a quantitative expression of the IAA's sampling results, and supports extrapolation.

D. Statistical sampling itself identifies root causes of issues, utilizes a qualitative method for analyzing results, and supports engagement objectives through the

Discussion of the question

Question 57 🔥

In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers accounts?

Which database solution meets these requirements?

A. Invoices are not being mailed to customers.

B. An employee is tampering with customer checks.

C. Employees are submitting fraudulent expense reports.

D. The customer service department is not forwarding complaints to the accounts receivable department.

Discussion of the question

Question 58 🔥

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Which database solution meets these requirements?

A. Assurance services for outside clients are not covered under the internal audit charter.

B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

C. The nature of assurance services for outside clients should be defined in the internal audit charter.

D. The nature of assurance services for outside clients is the same as for internal clients.

Discussion of the question

Question 59 🔥

Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

Which database solution meets these requirements?

A. A review of audit staff education and training records.

B. Information about the audit staff size and composition of comparable organizations.

C. Results from discussions of audit needs with executive management and the audit committee.

D. The results of the audit staff's most recent performance reviews.

Discussion of the question

Question 60 🔥

The chief audit executive needs to revise the internal audit activity's (IAA) charter. The revision must address the element of authority.Which of the following statements meets this requirement?

Which database solution meets these requirements?

A. The IAA shall identify and assess all potential risks to the operations of the organization.

B. The IAA shall be granted access to all records relevant to the performance of its duties.

C. Following its assessment, the IAA shall recommend risk control processes and resource management strategies.

D. The IAA shall deliver an initial report of its findings to the organization's board within 120 days of the beginning of the engagement.

Discussion of the question

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iia IIA_CIA_PART1

Exam contains 706 questions

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