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IIA IIA-CIA-Part1 Exam Sample Questions


Question # 1

According to the Standards,which of the following statements about effective governance is
not true?

A.

It relies on internal controls to be effective.

B.

It considers risk when setting strategy.

C.

Its structures are distinct from risk management structures.

D.

It is implemented by the board or an equivalent body.



C.

Its structures are distinct from risk management structures.






Question # 2

Which of the following statements is not true about red flags?

A.

It can be challenging to quantify red flags.

B.

There is a scarcity of established literature on red flags.

C.

Red flags can point auditors to intentional wrongdoing,errors and
omissions,inefficiency,and conflicts of interest.

D.

Red flags do not necessarily mean that fraud exists.



B.

There is a scarcity of established literature on red flags.






Question # 3

According to the Standards,the organizational status of the internal audit activity:

A.

Must be sufficient to permit the accomplishment of its audit responsibilities.

B.

Is best when the reporting relationship is direct to the board of directors.

C.

Requires the board's annual approval of the audit schedules,plans,and budgets.

D.

Is guaranteed when the charter specifically defines its independence.



A.

Must be sufficient to permit the accomplishment of its audit responsibilities.






Question # 4

New credit policies have been implemented in an automated order-entry system to improve
the collection of receivables. Sales management has compiled several examples that show
decreased sales and delayed order entry,and contends that these examples are a direct
result of the new credit-policy constraints. Sales management's data and information
provide:

A.

Feedback control data.

B.

Irrelevant and argumentative information.

C.

Evidence that the new credit policies do not meet the stated corporate objective to
improve collections.

D.

A statistically valid conclusion about the impact of the new credit policies on customer
goodwill.



A.

Feedback control data.






Question # 5

Which of the following risk factors is most subjective?

A.

Changes in staff,systems,or the environment.

B.

Prior audit findings.

C.

Size of the unit being audited.

D.

Competency of operating management.



D.

Competency of operating management.





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