IIA IIA-CIA-Part1 Exam Dumps

Essentials of Internal Auditing

IIA IIA-CIA-Part1 Sample Questions

Question # 1

Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be. 

A. Edit controls on the payroll file.
B. Appropriate segregation of duties for batch approval.
C. Validation of hash totals.
D. Reconciliation of paychecks to the bank account.

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Question # 2

Which of the following should be the primary objective of an audit of an entity's business continuity plan?

A. Cost of testing and updating the plan.
B. Delegation of responsibilities for the plan.
C. Relationship of the plan to risk exposures.
D. Efficiency of the planning procedures.

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Question # 3

A daily report which lists unsuccessful attempts to log on to a computer system is A.  

A. Corrective control.
B. Preventive control.
C. Detective control.
D. Compensating control.  

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Question # 4

Which of the following controls would most likely prevent the input of an unreasonable number oflabor hours into a costing system?

A. Recalculation tests during processing.
B. Programmed limit tests of input fields.
C. Reconciliation of input control totals.
D. Consistency checks of data in input fields.

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Question # 5

Which of the following internal controls is likely to prevent pollution from waste disposal before it occurs, rather than detect it after it occurs? 

A. Identification of large budget variances in disposal costs for hazardous chemicals.
B. Restricted access to environmental department files.
C. Formal on-the-job training program conducted by the environmental staff.
D. Samples of water and solid waste taken daily with the results recorded in a log.

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Question # 6

Which of the following is most likely to be an element of an effective compliance program? 

A. The internal audit activity is assigned responsibility for overseeing the program.
B. The program is communicated to employees in a video format on a one-time basis.
C. The organization uses monitoring systems designed to detect improper activity.
D. The organization obtains as much information as possible when performing background checks on employees.

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Question # 7

Which of the following best describes the procedures used by the representatives of anorganization's stakeholders to provide oversight of the processes administered by management?

A. Governance
B. Control
C. Risk management
D. Monitoring

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Question # 8

In assessing the independence of the internal audit activity, a member of a peer review teamshould consider all of the following factors except:

A. Access to and frequency of communications with the board of directors or its audit committee.
B. The criteria of education and experience considered necessary when filling vacant positions onthe audit staff.
C. The degree to which auditors assume operating responsibilities.
D. The scope and depth of engagement objectives for the audit engagements included in thereview.

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Question # 9

Which of the following actions by a chief audit executive is most likely to prevent exaggeratedsales reports by division management?I. Hire a new internal auditor who has fraud investigation credentials.II. Assist the controller in developing and monitoring a series of business process indicators whichare historically correlated with, but independent of, sales.III. Announce a series of internal audit engagements focusing on compliance with corporate salesreporting policies.IV. Ask the president and the board to issue a statement of corporate policy stressing theimportance of accurate management reporting and the negative consequences of intentionalmisreporting.

A. I and IIonly
B. II and IIIonly
C. III and IVonly
D. I,II,III,and IV. 

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Question # 10

It is important for a chief audit executive to seek formal approval from the board regarding an internal audit charter so that: 

A. The effectiveness of the internal audit activity can be measured.
B. The status of the internal audit activity can be more clearly established.
C. There is assurance that all internal audit activities will be completed.
D. Improvements can be implemented in internal audit processes.

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Question # 11

When planning the work program for an assurance engagement, an internal auditor should first review the department's business objectives and then:

A. Identify risks.
B. Review controls.
C. Determine scope. 
D. Evaluate vulnerabilities.  

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Question # 12

According to the International Professional Practices Framework, risk is:I. Defined as the negative effect of events that are expected to occur.II. Measured in terms of consequences.III. Measured in terms of likelihood.

A. Ionly
B. I and IIonly
C. II and IIIonly
D. I,II,and III.

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Question # 13

The percentage of orders that are rush orders and the percentage of returns to total orders are examples of which of the following types of control activities? 

A. Quality control monitoring.
B. Direct functional management.
C. Benchmarking.
D. Performance indicators.

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Question # 14

Risk within an internal audit engagement is defined as the:  

A. Probability that a balance or class of transactions and related assertions contain misstatementsthat could be material to the financial statements.
B. Uncertainty of an event occurring that could have an impact on the achievement of objectives.
C. Failure to adhere to organizational policies,plans,and procedures,or the failure to comply withrelevant laws and regulations.
D. Failure to accomplish established objectives and goals for operations or programs.

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Question # 15

Reportable audit findings must be:I. Documented by facts.II. Supported by relevant evidence.III. Agreed to by management of the audited area.IV. Convincing enough to compel corrective action.

A. I and IVonly
B. II and IIIonly
C. I,II,and IVonly
D. I,II,III,and IV.

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Question # 16

A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud? 

A. Develop a program that identifies procedures performed on an individual which are either inexcess of expectations based on the age of the insured or are similar to other procedures recentlyperformed on the individual.
B. Require all submitted claims to be followed by a signed statement by the dentist testifying to thefact that the claimed procedures were performed.
C. Send confirmations to the dentists requesting them to confirm the exact nature of the claimssubmitted to the insurance provider. 
D. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.  

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