IIA IIA-CIA-Part1 : Internal Audit Fundamentals

Which of the following scenarios violates The IIA ' s standard regarding internal audit independence?

• A. The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer audits in the annual audit plan compared to the previous financial year.
• B. The chief audit executive (CAE) reports on the internal audit activity ' s day-to-day tasks and responsibilities to the CEO.
• C. The CAE regularly meets with the organization ' s chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.
• D. An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.

Which type(s) of assessments in an internal audit activity's quality assurance and improvement program requires ongoing monitoring to evaluate internal audit activity ' s efficiency and effectiveness?

• A. internal assessment
• B. External assessment
• C. Both internal and external assessment
• D. Neither internal nor external assessment

Which of the following is an example of computer forensic auditing?

• A. Recovering deleted communications and emails.
• B. Assessing controls over allocation of IT assets in a specific location.
• C. Logging targeted cybersecurity events on the organization's network.
• D. Testing compliance with policies that define acceptable computer use.

An Internal auditor noted that many amended purchase orders were automatically created for discrepancies between the value of the original purchase order and the final invoice. Further examination revealed that most differences resulted from rounding errors, bulk weights, or minor tariff adjustments for shipping. Which of the following is the most reasonable conclusion for the Internal auditor regarding this control?

• A. The control is ineffective but efficient.
• B. The control is effective but inefficient.
• C. The control is both effective and efficient.
• D. The control is both ineffective and inefficient.

Which of the following statements is true regarding the importance of risk management?

• A. Risk management aids with the establishment of appropriate key performance indicators.
• B. Risk management ensures the ability to eliminate potential hazards to the organization.
• C. Risk management increases employees ' commitment and belief in strategic goals.
• D. Risk management includes consideration of potential opportunities for the organization.