IIA iia-cfsa practice test

There are multiple sets of attribute and performance standards:

• A. False
• B. True
• C. True- In specific conditions
• D. False- In specific conditions

All of the following phrases are used to express the auditor’s opinion EXCEPT:

• A. Give a true and fair view
• B. Present fairly, in all material respects
• C. Timely and consistent opinion
• D. Comprehensible and realistic view

The auditor should plan an audit with an attitude of:

• A. Professional competence
• B. Professional skepticism
• C. Subject awareness
• D. Opinion sharing

Which of the following is a limitation in an audit that affects auditors’ ability to detect material
misstatements?

• A. Scope of an audit
• B. The use of testing
• C. Over- generalization
• D. Unidentifiable risks

Reasonable assurance relates to the:

• A. Audit planning process
• B. Scope of the internal audit
• C. End of the audit process
• D. Whole audit process

The responsibility for preparing and presenting the audited financial statements is that of:

• A. Internal auditor
• B. Engagement client/ Management of the entity
• C. Process owner
• D. Auditing Agency

All these are disparities in public and private sector audits EXCEPT:

• A. Objective and scope
• B. Specific requirements of relevant regulation, ordinances or ministerial directives
• C. Specific and broad range mandate in public sector
• D. Reasonable assurance

Which one of the following is an internal control component?

• A. Compliance control
• B. Control activities
• C. Financial Reporting Controls
• D. Communication channels and network

Management must ___________ assess business risk and develop clearly defined control objectives:

• A. Continually
• B. Annually
• C. Periodically
• D. Weekly

Internal audit routinely reviews compliance risk and also should be reviewing business risk. The
efforts to control both risk types will purely enhance:

• A. The short-term profitability and viability of an organization
• B. The long-term profitability and viability of an organization
• C. Both short-term and long-term profitability and viability of an organization
• D. None of these

Following statements define risk EXCEPT:

• A. Organization has knowledge of facts constituting a dangerous condition
• B. Organization voluntarily exposes itself to the danger
• C. The element of assurance in an undertaking
• D. Measured in terms of impact and likelihood

Strategic planning is the process of taking a long-term view of the organization, the longer the view,
the greater the uncertainty of risks and opportunities. Such reservations can better be handled by:

• A. Timely decisions
• B. Flexible/ Adaptive plans and processes
• C. Periodic risk assessments
• D. Focusing on current period organizational activity

High-risk scores are those with an average of scores:

• A. 3.75 or more
• B. 3.25 or more
• C. 4.25 or more
• D. 4.00 or more

Low-risk scores are those with an average of scores:

• A. 2.25 or less
• B. 2.75 or less
• C. 2.00 or less
• D. 3.25 or less

Risks inherent in the management process are known as:

• A. Residual risks
• B. Long-term risks
• C. Control risks
• D. Strategic risks