Latest IIA-CIA-Part1 exam dumps with real IIA questions and answers [Q393-Q411] – IT Certification Exam Questions & Answers

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Latest IIA-CIA-Part1 exam dumps with real IIA questions and answers

IIA-CIA-Part1 Exam in First Attempt Guaranteed

Q393. During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?

Soft skills in communication, negotiation, and collaboration.

Technical skills in the area under review.

Professional qualifications and certification in internal auditing.

Confidentiality and independence.

Q394. According to The IIA’s Code of Ethics, which of the following actions violates the principle of confidentiality?

Accepting a consulting request in the IT department without possessing the requisite experience.

Providing personal tax preparation services for a fee for several employees during the lunch hour.

Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.

Agreeing to reword an observation to avoid the client complaining directly to the auditor’s supervisor.

Q395. Which of the following is a true statement regarding environmental, social, and governance (ESG) and corporate social responsibility (CSR)?

Sustainability disclosure is evolving around the world.

Having a CSR program also means decreased revenue and increased costs.

Organizations with ESG programs have lower performance due to the necessity to focus on sustainability as well.

Sustainability reporting focuses solely on the environmental and social performance of an organization’s activities.

Q396. A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

From sharing to reduction.

From acceptance to reduction.

From sharing to avoidance.

From acceptance to avoidance.

Q397. When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

Identifying risks to the organization’s operations.

Observing and analyzing controls.

Prioritizing known risks.

Reviewing organizational objectives.

Q398. According to IIA guidance, which of the following should be formally documented in the internal audit charter?

The internal audit activity’s responsibility for imposing risk management processes.

The internal audit activity’s responsibility for the FInance framework.

The nature of consulting services provided by the internal audit activity.

The budgeting process for the internal audit activity.

Q399. According to IIA guidance, which of the following statements is true with regard to the chief audit executive’s (CAE’s) responsibility for conducting a self-assessment of the internal audit activity?
1 The CAE should select an independent reviewer or review team to perform sufficient tests of the self-assessment to validate the results
2 The CAE should validate results by engaging experienced audit professionals from a separate internal audit activity outside of the organization to reperform all of the tests conducted for the assessment
3. The CAE should select independent, nonaudit professionals who are knowledgeable about the organization and the industry in which it operates to assist with performing the self-assessment
4. The CAE may consider performing a self-assessment with independent external validation in Iieu of performing a full external assessment

1 and 2 only.

1 and 4 only

1, 2, and 3

3 and 4

Q400. Which of the following statements about risk assessment is true?

Risk assessment focuses on the quantitative evaluation of exposures.

Risk assessment evaluates risk both on an inherent and residual basis.

Risk assessment determines the organization’s tolerance for exposure.

Risk assessment is the amount of inherent risk in a separately identifiable business entity.

Q401. A company produces a product that consists of materials X, Y, and.
The product is mixed so that:
The quantity of material X used is one-third more than that of material Y.

The quantity of material Y used is one-fourth less than that of material Z.

If the company used 24, 000 units of material Z during a period, what is a reasonable estimate of the amount of material X used?

8, 000

18, 000

24, 000

32, 000

Q402. Which of the following statements is true regarding the role of the internal audit activity in the organization’s risk management process?

The internal audit activity should not be responsible for developing the organization’s risk management framework, even with appropriate safeguards.

The internal audit activity is typically responsible for alerting operational management to emerging risks and changes in regulatory scenarios

The internal audit activity may coach management on risk response scenarios if safeguards have been implemented.

The internal audit activity should avoid giving assurance regarding the accuracy of risk evaluations if safeguards have not been implemented.

Q403. What is audit risk?

Internal and external risk factors that exist when there are no controls implemented.

The amount of risk that is reduced through risk management operations.

An incorrect conclusion based on evidence uncovered during an audit.

The risk that remains after management has executed risk management activities.

Q404. When the chief audit executive Is responsible for risk management in an organization, which of the following parties is responsible for overseeing the internal audit activity’s assurance over risk management?

The chief audit executive.

A member of the compliance function.

A party outside of the internal audit activity.

A member of the risk management function.

Q405. Which of the following actions is the internal audit activity best positioned within the organization to perform?

Determine organizational risk tolerances

Monitor the organization’s risk mitigations

Determine the likelihood and impact of risks

Advise the board on risk management issues

Q406. According to IIA guidance, which of the following statements regarding the internal audit charter is true?

The nature of consulting services typically is not included in the charter.

The chief audit executive must formally review the charter at least once a year

The nature of assurances provided to parties outside of the organization typically is not included in the charter.

The charter typically defines the internal audit activity’s position within the organization.

Q407. —-
When comparing an organization’s current performance to that of the prior year, an internal auditor found that:
Total labor costs had increased.
More overtime costs had been incurred.
The total number of workers had increased.
Net income was 10 percent lower.
Based solely on this information, which of the following is a valid conclusion?

Net income per worker decreased.

Wage rates increased.

Worker efficiency decreased.

Total labor hours increased.

Q408. Which of the following, other than the internal audit charter, is most likely to define the purpose, authority, and responsibility of the internal audit activity (IAA)?

The chief audit executive job description.

The internal audit policy statement.

The organization’s charter to conduct operations.

The IAA vision statement.

Q409. A company’s chief audit executive determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following actions would be the least acceptable?

Notify the audit committee of the problem and consult with them regarding outsourcing the audit engagement to a qualified external auditing firm.

Determine the requisite knowledge needed and obtain the proper training for auditors if such training is available within the appropriate time framework outlined by the audit committee.

Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.

Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Q410. An accounts payable clerk has recently transferred into the internal audit activity and has been assigned to an engagement related to accounts payable processes for which he was previously responsible. Which of the following is the best action for the new internal auditor to take?

If it is an assurance engagement, accept the assignment because direct knowledge of the existing accounts payable processes wifi provide depth and add more value.,

If it is a consulting engagement, decline the assignment and ask to be reassigned, because in a consulting engagement the auditor must not assess operations for areas in which they were previously responsible.

If it is a consulting engagement, accept the assignment because direct knowledge of the existing accounts payable processes will provide depth and add more value.

If it is an assurance engagement, accept the assignment because the chief audit executive had knowledge of the internal auditor’s previous role when this engagement was assigned.

Q411. Which of the following actions would compromise an internal auditor’s objectivity?

Preparing bank reconciliations.

Reviewing procedures before they are implemented.

Auditing an activity for which the auditor had responsibility two years ago.

Receiving a promotional pen from a supply available to all employees.