Free IIA-CIA-Part1 Exam Braindumps - New 2023 IIA Pratice Exam
Practice Test for IIA-CIA-Part1 Certification Real 2023 Mock Exam
IIA-CIA-Part1 certification exam is a crucial step towards becoming a certified internal auditor. It is designed to test the knowledge and understanding of candidates in the areas of internal auditing, including governance, risk management, ethics, and internal control. IIA-CIA-Part1 exam consists of 125 multiple-choice questions and has a duration of 2.5 hours. To pass the exam, candidates must score a minimum of 600 points out of 750.
IIA-CIA-Part1 certification exam is the first part of the Certified Internal Auditor (CIA) program, offered by the Institute of Internal Auditors (IIA). The CIA program is designed to provide internal auditors with the knowledge and skills necessary to succeed in their profession. The IIA-CIA-Part1 exam, also known as the Essentials of Internal Auditing exam, covers the fundamental principles and practices of internal auditing.
To be eligible for the IIA-CIA-Part1 exam, candidates must have a minimum of two years of work experience in internal auditing or a related field. IIA-CIA-Part1 exam consists of 125 multiple-choice questions and must be completed within two and a half hours. It covers six domains, including governance and risk management, organizational structure and business processes, communication, management and leadership principles, IT and business continuity, and financial management. Upon passing the Essentials of Internal Auditing exam, candidates will be well-prepared to advance their careers in internal auditing and take on more challenging roles within their organizations.
NEW QUESTION # 30
The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performeD.
- Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with the company's inventory records. - A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading and company records. No errors were detected. - The audit staff observed engineering personnel during the handling of hazardous materials. No company policy violations were noted.
The reconciliation of waste drums to the inventory records provides evidence that:
- A. The amount of hazardous materials being used was accurately recorded.
- B. Records of drums shipped to the waste disposal site were being maintained.
- C. Hazardous-waste materials were being disposed of as prescribed by company policy.
- D. All hazardous-waste drums in inventory were accounted for.
Answer: D
NEW QUESTION # 31
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?
- A. Include in the engagement documentation all possible effects and the potential impact of the fraud to the organization
- B. Evaluate the suspected activities to determine whether a forma! investigation is warranted,
- C. Ascertain the level of resources needed to formally investigate the fraud, and proceed with the investigation if resources permit,
- D. Immediately inform senior management and the board of the suspected fraud.
Answer: B
NEW QUESTION # 32
If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violated.
- A. Both the IIA Code of Ethics and the Standards.
- B. The IIA Code of Ethics.
- C. The Standards.
- D. Neither the IIA Code of Ethics nor the Standards.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION # 33
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?
- A. The IAA shall be granted access to all records relevant to the performance of its duties.
- B. The IAA shall identify and assess all potential risks to the operations of the organization.
- 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.
Answer: A
NEW QUESTION # 34
After the draft engagement report is issued, the manager of the area that was reviewed is informally interviewed by the engagement supervisor regarding the audit experience. Which of the following is most likely the purpose for this interview?
- A. The manager will provide insights into the audited industry's trends
- B. Feedback from the manager will contribute to the audit team's professional development
- C. Such an interview is performed when there is a need to dismiss an internal auditor
- D. The manager's opinion will be used to form the final audit assessment and report rating.
Answer: B
NEW QUESTION # 35
Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?
- A. The number and types of people involved in the assessment, costs, and duration of the QAIP
- B. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
- C. The scope, findings, risks, recommendations, and agreed-upon improvement actions.
- D. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
Answer: C
NEW QUESTION # 36
To enhance the independence of both the internal and external audit functions, audit committees should be composed of:
- A. Only external members of the board of directors or other similar oversight committees.
- B. Members from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.
- C. A rotating subcommittee of the board of directors or its equivalent.
- D. A combination of external members of the board of directors and company officers.
Answer: A
NEW QUESTION # 37
Which of the following activities would be most likely to impair the objectivity of an internal auditor?
- A. Benchmarking controls during the development of a new information systems application.
- B. Performing reviews of procedures for a new information systems application before it is installed.
- C. Assisting with the development and installation of a new information systems application.
- D. Developing recommended controls for the use of a new information systems application.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 38
Which of the following is a limitation of detective internal controls in fraud management?
- A. They are not designed to improve efficiency of operations.
- B. They are not effective in preventing fraud.
- C. Implementation costs tend to be higher than the expected benefits.
- D. They tend to be easy for fraudsters to circumvent.
Answer: A
NEW QUESTION # 39
An electric company hires several independent contractors to trim trees that are in close proximity to electricity lines. Which of the following would be the most effective control to mitigate the risk of contractors submitting fraudulent invoices regarding work completed?
- A. Utilize unmanned drones to conduct regular flights and photo shoots over the areas where work is performed
- B. Compare actual payments to contractors with budgeted values and analyze discrepancies
- C. Require contractors to submit completed and signed work acceptance sheets
- D. Reconcile invoices and work acceptance sheets submitted by contractors
Answer: D
NEW QUESTION # 40
An internal auditor in a small broadcasting organization was assigned to review the revenue collection process.
The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?
- A. Customer confirmation letters.
- B. Copies of deposit slips.
- C. Bank statements.
- D. Copies of sales invoices.
Answer: B
NEW QUESTION # 41
The internal audit activity's role in the risk assessment and management processes of an organization is determined by the:
- A. External auditors.
- B. Risk management department.
- C. Board of directors.
- D. Chief audit executive.
Answer: C
NEW QUESTION # 42
Which of the following conditions is the most likely indicator of fraud?
- A. A manager regularly assumes subordinates' duties.
- B. Lower earnings occur during the industry's down cycle.
- C. Commissions are paid based on verified increases to sales.
- D. Departmental reports are consistently issued in an untimely manner.
Answer: A
Explanation:
Section: Volume E
NEW QUESTION # 43
A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?
- A. Logic test.
- B. Balancing control activities.
- C. Data integrity tests.
- D. Check digits.
Answer: A
NEW QUESTION # 44
A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?
- A. Failure to complete the project within budget.
- B. Substitution of inferior materials.
- C. Excessive labor charged to the project.
- D. Poor physical protection of materials and equipment.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 45
What is the primary purpose of The IIA's Code of Ethics?
- A. Promote ethical culture within corporations and other business organizations
- B. Communicate specific activities appropriate to the performance of internal auditing
- C. Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing
- D. Establish mandatory standards of competence for the practice of internal auditing
Answer: C
NEW QUESTION # 46
Which of the following statements is not true?
- A. It is inappropriate for internal auditors to provide consulting services relating to operations for which they had previous responsibilities.
- B. The chief audit executive should decline a consulting engagement if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or a part of the engagement.
- C. A party outside the internal audit activity should oversee assurance engagements for functions over which the chief audit executive has responsibility.
- D. The nature of consulting services that are performed by the internal audit activity should be defined in the audit charter.
Answer: A
NEW QUESTION # 47
A newly appointed chief audit executive (CAE) is tasked with creating a new internal audit activity within the organization. Which of the following would the CAE need to include in the new internal audit charter?
- A. The relevant regulations that will guide the internal audit activity's regulatory compliance assessments
- B. The specific engagements that the internal audit activity will perform for the organization
- C. The board s oversight role and responsibilities pertaining to the internal audit activity
- D. The requirement to provide an annual cost analysis that justifies having an internal audit activity
Answer: A
NEW QUESTION # 48
An internal audit team analyzed the organization's value-at-risk model during an assurance engagement and suggested several useful improvements. Management was impressed by the internal audit team's work and requested additional actions. Which of the following requested actions would impact internal audit independence most severely if fulfilled?
- A. Validate whether model outputs serve the purpose stated by the model.
- B. Modify model inputs and suggest courses of action based on outcomes.
- C. Assess the effectiveness of the model at least semi-annually.
- D. Employ acquired experience to test other models used by the company.
Answer: C
NEW QUESTION # 49
Which of the following best describes the type of organizational culture known as adaptability culture'?
- A. A culture that places high value on participation and meeting the needs of employees.
- B. A culture that emerges in quick-response and high-risk decision-making environments
- C. A results-oriented culture that values competitiveness and personal initiative
- D. A culture that is characterized by low involvement with environmental and health issues
Answer: B
NEW QUESTION # 50
Which of the following topics would a chief audit executive most likely include with their report to the board?
- A. The status of labor contract negotiations at the largest manufacturing plant.
- B. Analyses of recent increases in overtime.
- C. A recent management hire to oversee labor concerns.
- D. A significant level of senior management turnover throughout the organization.
Answer: D
NEW QUESTION # 51
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