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IIA-CIA-Part1 exam is an important certification for individuals who are looking to pursue a career in internal auditing. Essentials of Internal Auditing certification is globally recognized and highly valued by employers. IIA-CIA-Part1 exam covers a wide range of topics related to internal auditing and is designed to test the knowledge and skills required for individuals to perform their duties effectively.
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IIA Essentials of Internal Auditing Sample Questions (Q84-Q89):
NEW QUESTION # 84
Which of the following is an example of an impairment to an internal auditor's independence?
- A. A new member of the internal audit activity, who was the accounts payable supervisor for two years, is asked to consult on the implementation of a new accounts payable system
- B. Believing there must be errors in a given balance sheet account the internal auditor decides to expand his testing
- C. Following the restructuring of the organization, the internal audit activity now reports functionally to the chief financial officer
- D. An internal auditor delays reporting material financial statement audit findings until after his parents sell all of their stock in the company
Answer: C
Explanation:
The internal audit activity reporting functionally to the chief financial officer (CFO) can impair an internal auditor's independence. Functionally reporting to the CFO, who may be responsible for areas under audit, could create a conflict of interest and affect the auditor's ability to act independently. This arrangement can compromise the objectivity required for the internal audit function as outlined in the IIA standards.
IIA Standard 1110 - Organizational Independence
NEW QUESTION # 85
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A risk and control matrix.
- B. A process narrative.
- C. A flowchart.
- D. A walk-through.
Answer: A
NEW QUESTION # 86
Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?
- A. To satisfy the audit committee requirements.
- B. To ensure that the resources needed to complete the audit plan are available.
- C. To ensure that staff complete required continuing professional education credits annually.
- D. To accurately conduct performance appraisals
Answer: B
NEW QUESTION # 87
Which of the following is true about corporate social responsibility (CSR)?
- A. Social and environmental considerations are required parts of an organization's decision making
- B. The Global Reporting Initiative provides standards on required disclosures of CSR.
- C. CSR activities are overseen and managed by operational management.
- D. Internal auditors can provide assurance on reported sustainability results.
Answer: D
Explanation:
Internal auditors can indeed provide assurance on reported sustainability results. This involves evaluating the accuracy and completeness of an organization's sustainability reporting and verifying that the reported information reflects actual performance. This role aligns with the broader assurance and advisory functions of internal audit, ensuring that CSR disclosures are reliable and credible.
References:
* The Institute of Internal Auditors (IIA) Standards and Practice Advisories.
* Global Reporting Initiative (GRI) Standards.
* "Internal Auditing: Assurance & Advisory Services" by IIA, Chapter on CSR and Sustainability Reporting.
NEW QUESTION # 88
After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?
- A. In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.
- B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
- C. To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.
- D. In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.
Answer: B
Explanation:
Section: Volume E
Explanation/Reference:
NEW QUESTION # 89
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