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IIA IIA-CIA-Part1 Exam Questions

IIA IIA-CIA-Part1 Exam Questions Answers

Internal Audit Fundamentals

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IIA IIA-CIA-Part1 Sample Questions – Free Practice Test & Real Exam Prep

Question #1

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.  
Answer: A
Question #2

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.
Answer: C
Question #3

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.
Answer: D
Question #4

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.
Answer: B
Question #5

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.
Answer: C
Question #6

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.  
Answer: A 
Question #7

Which of the following elements is important for an internal auditor to consider when performing aprivacy risk assessment of an organization?I. Areas where personal information is collected, used, stored, and disseminated.II. Inherent risk.III. Privacy practices of competitors.IV. Third-party recipients of information.

  • A. IIIonly
  • B. I and IIonly
  • C. I,II,and IVonly
  • D. I,II,III,and IV.
Answer: C
Question #8

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by: 

  • A. Identifying risks to the organization's operations.
  •  B. Observing and analyzing controls. 
  • C. Prioritizing known risks.
  • D. Reviewing organizational objectives.
Answer: D
Question #9

Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment? 

  • A. The department makes long-term investment risk decisions to maximize return on investment.
  • B. The department manager sets and demonstrates a tone of honesty and integrity in all businessdealings.
  • C. Many department functions are duplicated or verified by other department employees.
  • D. Deficiencies were found in the appropriate authorization of transactions.
Answer: A
Question #10

If management has not established a risk management process, the internal audit activity could.  

  • A. Take a proactive role that supplements traditional assurance activities.
  • B. Identify and mitigate risks to the organization.
  • C. Assume responsibility for the management of identified risks.
  • D. Assume primary responsibility for determining if adequate and effective processes are in place.
Answer: A
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