2024 Latest 100% Exam Passing Ratio - IIA-CIA-Part1 Dumps PDF
Pass Exam With Full Sureness - IIA-CIA-Part1 Dumps with 725 Questions
NEW QUESTION # 182
Which of the following organizations has reached the most mature level of corporate social responsibility?
- A. An organization that requires its decision makers to act with equity, fairness, and respect for the rights of individuals.
- B. An organization that ensures compliance to legal frameworks of the countries in which it operates and sells its products.
- C. An organization that is able to provide goods and services society needs and thus maximizes profit to its owners.
- D. An organization that is willing to make contributions not mandated by law or economics and expects no payback.
Answer: A
NEW QUESTION # 183
Which of the following would provide the most reliable information on the risk associated with an auditable activity?
- A. Management assessment and corroboration by the internal audit activity.
- B. Past audit findings and instances of management failures.
- C. Event scenarios with regression analysis.
- D. Consequences and economic predictability of loss.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 184
An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?
- A. Employ simple random sampling.
- B. Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
- C. Select those items that are most easily inspected.
- D. Sample so that the probability of a given inventory item being selected is proportional to its book value.
Answer: D
NEW QUESTION # 185
What would be the proper sequence of steps for an internal auditor to take in order to draw a conclusion on internal control effectiveness and adequacy after ascertaining the key controls?
- A. Test the controls for effectiveness and then evaluate the adequacy of the controls.
- B. Identify risks and then evaluate the controls for effectiveness.
- C. Evaluate the controls for effectiveness and then assess the risks in the area.
- D. Evaluate the adequacy of the controls and then test the controls for effectiveness.
Answer: D
NEW QUESTION # 186
Which of the following is an example of the chief audit executive (CAE) demonstrating due professional care?
- A. The CAE provides absolute assurance to line management during each eternal audit engagement
- B. The CAE assesses the audit staff's knowledge and skills annually to determine whether additional resources are needed to fulfill the internal audit plan.
- C. The CAE relies on CAEs in other organizations to understand how due professional care should be executed in her internal audit activity
- D. The CAE meets with the board of directors on a quarterly basis to provide a status update.
Answer: B
Explanation:
An example of the chief audit executive (CAE) demonstrating due professional care is by assessing the audit staff's knowledge and skills annually to determine whether additional resources are needed to fulfill the internal audit plan. This practice ensures that the internal audit team is adequately equipped in terms of skills and competencies to meet the organization's audit needs effectively and professionally.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)
NEW QUESTION # 187
Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?
- A. The internal auditors interview staff at various levels and determine whether the organization's objectives, significant risks, and risk appetite are articulated sufficiently.
- B. The internal auditors review the organization's strategic plan, business plan, and policies, and have discussions with the board and senior management.
- C. The internal auditors evaluate the adequacy and timeliness of management's reporting of risk management results.
- D. The internal auditors review recently completed risk assessments and related reports issued by senior management, external auditors, and other sources.
Answer: B
Explanation:
Internal auditors obtain reasonable assurance that significant risks are identified and assessed primarily through comprehensive reviews of the organization's strategic plan, business plan, and policies. Discussions with the board and senior management further enrich the auditors' understanding of the strategic directions and risk management processes, ensuring that all significant risks are identified and effectively addressed in alignment with organizational objectives.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)
NEW QUESTION # 188
Which of the following options describes the reason that conformance with The IIA's Code of Ethics is mandatory for internal auditors?
- A. The internal audit activity's ethical compliance sets the tone for the ethical compliance by the organization's board, management, and employees.
- B. Ethical compliance is necessary for internal auditors and the internal audit activity to accept responsibility for providing g absolute assurance about the organization's risk management.
- C. Ethical compliance provides the basis for stakeholder trust and confidence in the validity of the profession of internal auditing and the internal audit activity's findings.
- D. Ethical compliance provides the basis for stakeholder confidence in the competence of the internal audit activity and of professional internal auditors.
Answer: C
Explanation:
Conformance with The IIA's Code of Ethics is mandatory for internal auditors because it provides the basis for stakeholder trust and confidence in the validity of the profession of internal auditing and the internal audit activity's findings. Ethical behavior in internal auditing ensures that auditors are trusted by those who rely on their conclusions, advice, and information, thereby enhancing the integrity and credibility of the audit results.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)
NEW QUESTION # 189
A company produces a product that consists of materials X, Y, and.
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. 18, 000
- B. 32, 000
- C. 24, 000
- D. 8, 000
Answer: C
NEW QUESTION # 190
Which of the following is most likely to enhance an internal auditor's objectivity?
- A. An auditor performs his work free from interference.
- B. An auditor avoids conflicts of interest.
- C. An auditor is appropriately able to communicate results.
- D. An auditor is unrestricted in determination of scope.
Answer: B
NEW QUESTION # 191
Which of the following should be the primary objective of an audit of an entity's business continuity plan?
- A. Efficiency of the planning procedures.
- B. Relationship of the plan to risk exposures.
- C. Cost of testing and updating the plan.
- D. Delegation of responsibilities for the plan.
Answer: B
NEW QUESTION # 192
To enhance the independence of both the internal and external audit functions, audit committees should be composed of:
- A. A combination of external members of the board of directors and company officers.
- B. Only external members of the board of directors or other similar oversight committees.
- C. A rotating subcommittee of the board of directors or its equivalent.
- D. Members from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.
Answer: B
NEW QUESTION # 193
Which of the following situations allows for the most objectivity on the part of an internal auditor?
- A. Drawing conclusions from a sample of financial transactions.
- B. Comparing current environmental activities against legislation.
- C. Performing a risk assessment of a new financial instrument.
- D. Assessing testing procedures in a new computer system.
Answer: B
NEW QUESTION # 194
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?
- A. Pressure or incentive.
- B. Commitment.
- C. Rationalization.
- D. Opportunity.
Answer: A
NEW QUESTION # 195
What would a chief audit executive most likely recommend that an internal auditor do to prepare for an increased demand in advisory services?
- A. Participate in continuing professional development activities, such as training courses or rotations into other business units.
- B. Specialize in one specific aspect of internal auditing, such as risk assessment or information technology controls.
- C. Expand the scope of every future internal audit activity to all parts of the organization, rather than only the departments identified in the activity's charter.
- D. Review records from prior engagements to determine how best to align the current engagement activities with prior activities.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 196
Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.
- A. 3 only
- B. 2 and 3 only
- C. 1, 2, and 3
- D. 1 and 2 only
Answer: B
NEW QUESTION # 197
Which of the following is an example of impairment to internal auditor independence or objectivity'?
- A. Consulting engagements for functions over which the CAE has responsibility are overseen by a party outside the internal audit activity
- B. Internal auditors provide consulting services relating to operations for which they have current responsibilities
- C. Assurance engagements for functions over which the chief audit executive (CAE) has responsibility are overseen by a party outside the internal audit activity
- D. Internal auditors provide consulting services relating to operations for which they had previous responsibilities
Answer: B
Explanation:
An example of impairment to internal auditor independence or objectivity is when internal auditors provide consulting services relating to operations for which they have current responsibilities. This creates a direct conflict of interest as the auditor is assessing parts of the organization for which they are responsible, potentially compromising their ability to remain objective and unbiased.References: The IIA's Code of Ethics and International Standards for the Professional Practice of Internal Auditing, particularly standards related to objectivity and independence.
NEW QUESTION # 198
......
Verified IIA-CIA-Part1 dumps Q&As - 100% Pass from ITExamDownload: https://www.itexamdownload.com/IIA-CIA-Part1-valid-questions.html
Pass IIA-CIA-Part1 Exam in First Attempt Guaranteed 2024 Dumps: https://drive.google.com/open?id=1XdWuBMKyP21AbL4KpA_xeK9-n_YRNpVv