PrepAway - Latest Free Exam Questions & Answers

Category: IIA-CIA-Part1

Exam IIA-CIA-Part1: Certified Internal Auditor – Part 1, The Internal Audit Activity’s Role in Governance, Risk, and Control

A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm’s

A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm’s processes related to hazardous materials should includE. I. Recommending an environmental management system as part of policies and procedures. II. Verifying the existence of tracking records for these materials from creation to destruction. III. Using consultants to avoid […]

When internal auditors perform consulting services that add value and improve an organization’s operatio

When internal auditors perform consulting services that add value and improve an organization’s operations, these services: A. Impair the internal auditors’ objectivity with respect to an assurance service involving the same engagement client. B. Would preclude the achievement of assurance from the consulting engagement. C. Should be consistent with the internal audit activity’s empowerment reflected […]

Which of the following should be considered outside the scope of this security audit engagement?

An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the […]

Which of the following best describes the underlying premise of the COSO enterprise risk management framework?

Which of the following best describes the underlying premise of the COSO enterprise risk management framework? A. Management should set objectives before assessing risk. B. Every entity exists to provide value for its stakeholders. C. Policies are established to ensure that risk responses are performed effectively. D. Enterprise risk management can minimize the impact and […]

Which of the following would not be a factor for senior management to consider when determining the internal a

Which of the following would not be a factor for senior management to consider when determining the internal audit activity’s role in an organization’s risk management process? A. The extent to which the internal audit activity is outsourced. B. The maturity level of risk management practices in the organization. C. The competency of the internal […]

Which of the following options would accomplish this task and be in conformance with the Standards?

An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards? A. External industry associate that performed a similar review for a supplier of the organization. B. A […]

Which of the following activities most significantly increases the risk that a bank will make poor-quality loa

Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers? A. Borrowers may not sign all required mortgage loan documentation. B. Fees paid by the borrower at the time of the loan may not be deposited in a timely manner. C. The bank’s loan documentation […]

Which of the following is not an appropriate type of coordination between the internal audit activity and regu

Which of the following is not an appropriate type of coordination between the internal audit activity and regulatory auditors? A. Regulatory auditors share their perspective on risk management, control, and governance with the internal auditors. B. Internal auditors perform fieldwork at the direction of the regulatory auditors. C. Internal auditors review copies of regulatory reports […]

An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,000.

An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists iF. A. The auditor located two checks for $9,000 each that contained one authorized signature. B. The $10,000 was an immaterial amount to […]


Page 1 of 3123