Questions for the IIA CIA PART1 were updated on : Sep 01 ,2024
An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?
A
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
Which two of the following are preventive controls in a check disbursement process?
1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-
reconciled items.
2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling
the bank account.
3. An activity report detailing who accesses the check disbursement system and the nature of any
action taken in the system.
4. Evidence of strong access controls ensuring that authorized individuals have access only to the
functions related to their responsibilities.
D
A large trucking organization wants to reduce traffic accidents by improving its system of internal
controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a
preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.
A
Which segregation of duties would best reduce the risk of payroll fraud?
A
An organization is beginning to implement an enterprise risk management program. One of the first
steps is to develop a common risk language. Which of the following statements about a common risk
language is true?
C
An organization invests its savings in a volatile stock with the potential for high gains rather than a
mutual fund with a lower expected return and lower volatility. This best describes which of the
following risk concepts?
D
Which of the following best describes the misdirection of payments on accounts receivable to an
employee's bank account?
C
When auditing the award of a major contract, which of the following should an internal auditor
suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.
D
Which of the following combinations of conditions is most likely a red flag for fraud?
C
Which of the following techniques would provide the most compelling evidence that a safety hazard
exists within a manufacturing facility?
A
While performing an accounts payable engagement, a senior auditor wants to conduct several tests
of controls for travel expenses. Which of the following actions are most appropriate for the senior
auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.
C
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify
the present value of the organization's investments. Which of the following is the most appropriate
course of action regarding the auditor's use of this functionality?
B
Which of the following factors should be considered when determining the appropriate combination
of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.
D
The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk
engagements on the annual audit plan to make use of his knowledge and experience and to
maximize the efficient use of audit resources. Which of the following statements is most relevant
regarding this practice?
B