Free IIA IIA-CIA-Part1 Exam Questions

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

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Total 951 Questions | Updated On: Jun 05, 2025

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Question 1

When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?

A : external auditors have requested assistance for their upcoming annual audit.

B : new accounts payable system is currently undergoing testing by the information technology department.

C : nagement has requested an investigation of possible lapping in receivables.

D : existing accounts payable system has not been audited over the past year.

Answer: C

Question 2

An auditor is using audit software to check inventory accuracy. Which of the following would be an indicator of poor input edit controls?

A : gative quantities on hand.

B : tal dollar values of zero for some parts.

C : pha characters in the field for order lead time.

D : order levels set too high.

Answer: C

Question 3

Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales 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 which are historically correlated with, but independent of, sales.

III. Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.

IV. Ask the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

A : and II only

B : and III only

C : I and IV only

D : II, III, and IV.

Answer: C

Question 4

Regarding an organization's decision to retain an external audit firm, the chief audit executive (CAE) should:

A : rk with the organization's chief financial officer to evaluate the external auditor's performance and together make the decision.

B : t be involved in this decision process as it would compromise the CAE's objectivity.

C : aluate the external auditor's performance and retain the external auditor if quality and cost criteria are met.

D : ist the audit committee by facilitating the development of an appropriate evaluation process.

Answer: D

Question 5

Which of the following scenarios involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

A : CAE fails to ensure internal audit staff receive training annually.

B : CAE fails to rotate internal audit staff, resulting in the same internal auditors conducting the same engagements year after year.

C : CAE reports directly to the organization's chief financial officer.

D : CAE reports directly to the board.

Answer: C

Page: 1 / 191

Total 951 Questions | Updated On: Jun 05, 2025

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