IIA Internal Audit Fundamentals - IIA-CIA-Part1 Exam Practice Test

A. Call a sample of customers who returned merchandise to test the legitimacy of the returns and check refund amounts.

B. Require that a manager use a reserved register code to approve voids or refunds.

C. Analyze voids and refunds by employee, credit card number, and amount for unusual numbers, amounts, or patterns.

D. Ensure that returned merchandise is restocked to shelves or sent to the manufacturer by an independent employee.

A. active control? 3

B. Third parties who operate the hotline ensure anonymity for whistle blowers. D Whistleblower tips help discover wrongdoings and violations of the code of conduct.Potential perpetrators of fraud know that their actions can be reported easily.

C. Better investigation protocols are triggered by the whistleblower hotline.

A. Fraud specialists are better at using crime scene investigation techniques.

B. Fraud specialists are better at using computer-assisted audit techniques.

C. Fraud specialists are better able to properly apply due professional care.

D. Fraud specialists are better equipped to act as an expert witness in court.

A. Fewer internal audits.

B. Automated risk management strategy tools.

C. Reduced assurance costs.

D. More effective interviews.

A. Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.

B. Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.

C. Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.

D. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization ' s operations.

A. The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities,

B. The board is responsible for setting the organizational attitude through tone at the top,

C. The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.

D. The framework is designed to be effective for organizations no matter how small.

A. The CAE must do this upon completion of each external quality assessment

B. The CAE must do this at least once every five years

C. The CAE must do this at least annually

D. The CAE should do this periodically in conjunction with a review of the internal audit charter

A. Management approval

B. Reporting relationships

C. Independent review

D. Quarterly assessment

A. Accept, if it is an assurance engagement, as she has been out of the department long enough to not impair objectivity.

B. Inform the accounting department that the engagement can take place in the future, once she has been removed from accounting for a longer period of time.

C. Decline, if it is a consulting engagement, because she recently worked in the organization ' s accounting department.

D. Accept, if it is a consulting engagement with agreed-upon scope and services to be provided by the internal audit activity.