Free IIA IIA-CIA-Part1-3P Exam Questions

Become IIA Certified with updated IIA-CIA-Part1-3P exam questions and correct answers

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Total 951 Questions | Updated On: Jun 04, 2025

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Question 1

According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?

I. The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.

II. Treasury management has not instituted any risk management policies.

III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

IV. The external auditors have indicated some difficulties in obtaining account confirmations

A : and II only

B : and IV only

C : II, and III only

D : , III, and IV only

Answer: C

Question 2

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

A : department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.

B : department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.

C : ny department functions were duplicated or verified by other department employees as part of the department's normal procedures.

D : dit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.

Answer: A

Question 3

Which of the following must be considered by the chief audit executive before writing the internal audit charter?

A : ternal auditors' level of competencies and skills.

B : manner in which the internal audit activity is viewed by the board.

C : Evaluation of staff certifications and continued development.

D : Effectiveness of the quality assurance and improvement program.

Answer: B

Question 4

Which of the following would be most helpful to measure whether an internal audit activity successfully provides risk-based assurance?

A : rcentage of highly significant risks covered by internal audit plan.

B : rcentage of previously unknown risks identified per engagement.

C : rcentage of internal audit staff skilled in alignment with the organization’s structure and key risks.

D : rcentage of observations made in assurance engagements compared to advisory engagements.

Answer: A

Question 5

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

A : rminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.

B : rminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

C : fer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period

D : ek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

Answer: C

Page: 1 / 191

Total 951 Questions | Updated On: Jun 04, 2025

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