IIA-CIA-Part1 Preparation Guides

Query: 1 The highest three gross sales representatives for a corporation persistently embrace non-allowable prices on their expense reviews. Line administration is reluctant to disclaim reimbursement of the fees for concern of shedding the gross sales representatives. This case has the best damaging affect on which of the next inner management elements? A. Monitoring. B. Management setting. C. Info and communication. D. Management actions. Reply: B Query: 2 Which of the next components impacts the management threat of an organization? A. Potential issues like technological obsolescence. B. Uncommon pressures on administration. C. Advanced accounts that require professional valuations. D. Segregation of duties. Reply: D Query: 3 Human sources and payroll are separate departments. Which of the next mixtures would supply one of the best segregation of duties? A. Human sources personnel add workers, payroll personnel course of hours, and human sources personnel ship paychecks to workers. B. Human sources personnel add workers, evaluate and submit payroll hours to the payroll division for processing, and ship paychecks to workers. C. Human sources personnel add workers, and payroll personnel course of hours and enter worker checking account numbers. Paychecks are robotically deposited within the worker’s checking account. D. Payroll personnel add workers and enter worker checking account numbers however course of hours solely as permitted by the human sources division. Paychecks are robotically deposited within the worker’s checking account. Reply: C Query: 4 Which of the next is an acceptable function for the board in governance? A. Making ready written organizational insurance policies that relate to compliance with legal guidelines, laws, ethics, and conflicts of curiosity. B. Making certain that monetary statements are comprehensible, clear, and dependable. C. Helping the interior audit exercise in performing annual critiques of governance. D. Working with the group’s attorneys to develop a technique relating to present litigation, pending litigation, or regulatory proceedings governance. Reply: B Query: 5 In keeping with the Worldwide Skilled Practices Framework, which of the next is the suitable division of duties for the coordination of inner and exterior audit efforts? I. Oversight of Work Coordination of Actions Chief audit government Senior administration II. Board Chief audit government III. Chief monetary officer Chief audit government IV. Board Chief monetary officer A. I. B. II. C. III. D. IV. Reply: B Query: 6 In keeping with the Requirements, the organizational standing of the interior audit exercise: A. Have to be enough to allow the accomplishment of its audit duties. B. Is greatest when the reporting relationship is direct to the board of administrators. C. Requires the board’s annual approval of the audit schedules, plans, and budgets. D. Is assured when the constitution particularly defines its independence. Reply: A Query: 7 A high-volume retailer of client items has used point-of-sale knowledge to report gross sales and replace stock information for a number of years. When worth adjustments are scheduled, company headquarters downloads a worth change file to a pc server system at every retailer. Every retailer’s assistant supervisor is chargeable for checking the server for downloads and operating this system that updates the shop’s worth file on the licensed worth replace time. As compared with having headquarters provoke the worth replace centrally, this strategy to cost updating will more than likely: A. Lower the danger that clients might be undercharged persistently for gross sales gadgets. B. Lower the danger that merchandise costs will generally be inaccurate. C. Enhance the danger that clients might be undercharged persistently for gross sales gadgets. D. Enhance the danger that merchandise costs will generally be inaccurate. Reply: D Query: 8

An inner auditor is reviewing a brand new automated human sources system. The system comprises a desk of pay charges that are matched to the worker job classifications. The most effective management to make sure that the desk is up to date accurately for less than legitimate pay adjustments could be to: A. Restrict entry to the information desk to administration and line supervisors who’ve the authority to find out pay charges. B. Require a supervisor within the division, who doesn’t have the flexibility to alter the desk, to check the adjustments to a signed administration authorization. C. Be certain that satisfactory edit and reasonableness checks are constructed into the automated system. D. Require that each one pay adjustments be signed by the worker to confirm that the change goes to a bona fide worker. Reply: B Query: 9 In keeping with the Worldwide Skilled Practices Framework, inner auditors ought to possess which of the next competencies? I. Proficiency in making use of inner auditing requirements, procedures, and strategies. II. Proficiency in accounting rules and strategies. III. An understanding of administration rules. IV. An understanding of the basics of economics, business regulation, taxation, finance, and quantitative strategies. A. I solely. B. II solely. C. I and III solely. D. I, III, and IV solely. Reply: D Query: 10 Which of the next shouldn’t be an acceptable function for inner auditors after a catastrophe happens? A. Monitor the effectiveness of the restoration and management of operations. B. Right deficiencies of the entity’s enterprise continuity plan. C. Suggest future enhancements to the entity’s enterprise continuity plan. D. Help within the identification of classes realized from the catastrophe and the restoration operations. Reply: B Query: 11 Which of the next lists the audit actions within the order by which they’d usually be accomplished throughout a preliminary survey? I. Write detailed audit procedures. II. Determine shopper targets, objectives, and requirements. III. Determine dangers and controls supposed to stop related losses. IV. Decide related engagement targets. A. II, I, IV, III. B. II, III, IV, I. C. III, IV, II, I. D. II, IV, I, III. Reply: B Query: 12 In the course of the planning section of an audit of suspected overbilling on contracts for safety providers, an auditor ought to carry out all the following besides: A. Interviewing an official of the safety providers firm to find out the reason for latest will increase in billings for providers. B. Interviewing the supervisor who requested the audit engagement. C. Acquiring a duplicate of the contract between the 2 organizations. D. Making ready an engagement program. Reply: A Query: 13 Which of the next statements relating to segregation of duties is true? A. When evaluating a company’s coverage on segregation of duties, worker competence doesn’t have to be thought of. B. An organizational chart gives an correct definition of segregation of duties. C. A restrictive segregation-of-duties coverage may also help enhance a company’s communication. D. Insurance policies on segregation of duties in info methods should acknowledge the distinction between logical and bodily entry to belongings. Reply: D Query: 14 An auditor plans to research buyer satisfaction, together with: (1) buyer complaints recorded by the customer support division over the last three months; (2) merchandise returned within the final three months; and (3) responses to a survey of consumers who made purchases within the final three months. Which of the next statements relating to this audit strategy is appropriate? A. Though helpful, such an evaluation doesn’t handle any threat components. B. The survey wouldn’t take into account clients who didn’t make purchases within the final three months. C. Steps 1 and a pair of of the evaluation are usually not obligatory or cost-effective if the client survey is complete. D. Evaluation of three months’ exercise wouldn’t consider buyer satisfaction. Reply: B

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