IIA iia cia part1 practice test

Which of the following types of policies best helps promote objectivity in the interna! audit activity's
work?

• A. Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment,
• B. Policies that match internal auditors' performance with feedback from management of the area under review.
• C. Policies that keep internal auditors in areas where they have vast audit expertise.
• D. Policies that provide examples of inappropriate business relationships.

According to NA guidance, which of the following conditions would enhance the independence of
the internal audit activity?

• A. The organizational culture rewards critical and objective thinking.
• B. The quality of work performed by the internal audit activity is periodically reviewed,
• C. The organization establishes effective governing body oversight,
• D. Audit assignments are rotated among internal audit staff

A series of incidents over the past year reveals several members of senior management possess a
limited understanding of the concept and impact of fraud. Which of the following would be the most
effective way to approach this issue?

• A. The board should ask the internal audit activity to perform additional assurance engagements.
• B. A comprehensive fraud risk assessment and management program should be carried out.
• C. The organization should conduct training sessions on fraud, which should be attended by senior management and staff.
• D. Anti-fraud and whistleblowing policies should be implemented and their importance should be clearly stated.

In which of the following situations may the internal audit activity report conformance with the
Standards?

• A. An internal audit activity has been in existence at least five years and has not completed an external assessment,
• B. An internal auditor was assigned to an audit engagement but did not meet individual objectivity requirements.
• C. The internal audit activity prepared an internal audit plan that was not risk-based.
• D. The internal audit activity has been in existence fewer than five years, but periodic self- assessments were conducted.

A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to
perform a management request for a consulting engagement. According to IIA guidance, which of
the following is the most appropriate action the CAE should take regarding the request?

• A. Assign the engagement to a more senior internal auditor.
• B. Decline the engagement request.
• C. Allow the internal auditors to acquire the needed skills while performing the engagement.
• D. Supervise the assigned internal auditors throughout the engagement.

Which of the following statements best demonstrates application of due professional care during an
assurance engagement?

• A. The engagement detected irregularities and noncompliance instances.
• B. The engagement supervisor had no significant comments in the supervisory review.
• C. The audit procedures were systematically planned, executed, and documented.
• D. The engagement objectives were designed to assist the engagement client.

Which of the following best describes the risk contained in an initial public offering for a new stock?

• A. Residual risk.
• B. Net risk.
• C. Inherent risk.
• D. Underlying risk.

An internal auditor is updating the risk register for risks identified during a recent organizational risk
assessment. According to the Standards, which of the following would the auditor include in the risk
register?

• A. Management’s acceptance of inadequate controls for cybersecurity risk.
• B. Discussions with senior management relating to a new revenue stream.
• C. Mitigating controls implemented by the engagement supervisor
• D. Project manager planned hours versus time spent for all prior year projects

Which of the following would be considered a monitoring activity in organization wide risk
management?

• A. Validate the results of management's self-assessment.
• B. Perform reviews of personnel.
• C. Maintain rigorous and comprehensive documentation.
• D. Obtain authorizations and signatures.

Which of the following documents are internal auditors most likely to be asked to sign as a
demonstration of due professional care?
A description of their job responsibilities,

• A. A non-disclosure agreement.
• B. An annual declaration of commitment to
• C. The IIA s Code of Ethics.
• D. The internal audit charter.