IIA-CIA-Part1 Exam Practice Tests for IIA | Boost2Certify

1. IIA IIA-CIA-Part1 Exam Essentials of Internal Auditing Exam Latest Version: 21.0 DEMO Version Full Version Features: • 90 Days Free Updates • 30 Days Money Back Guarantee • Instant Download Once Purchased • 24 Hours Live Chat Support Full version is available at link below with affordable price. https://boost2certify.com/iia/iia-cia-part1 https://boost2certify.com/iia/iia-cia-part1 Page 1 of 6

2. Question 1. (Single Select) Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization? A: Review the organization's ethical value structure and reporting procedures. B: Review what the organization considers to be ethical behavior, such as the employee code of conduct. C: Review employee survey responses and follow up on those that suggest weaknesses in the ethical climate. D: Review the organization's records to ensure all employees have signed statements that they will follow ethical practices. Correct Answer: C Explanation: To effectively determine whether ethical values are followed throughout an organization, internal auditors should review employee survey responses and follow up on those that suggest weaknesses in the ethical climate. This approach allows auditors to gather firsthand insights from employees about the actual ethical environment, which can be more telling than formal documentation or compliance with written policies alone. It provides a direct measure of the ethical culture as experienced and perceived by the employees themselves.Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing; Guidance on assessing organizational culture. Question 2. (Single Select) Which of the following statements is true with regard to services provided by the internal audit activity? A: For consulting engagements, internal auditors do not need to be alert to control issues. B: Assurance and consulting services have similar objectives. C: Internal auditors may not perform assurance and consulting roles at the same time. https://boost2certify.com/iia/iia-cia-part1 Page 2 of 6

3. D: Both assurance and consulting engagements require a final engagement report Correct Answer: D Explanation: According to IIA standards, both assurance and consulting engagements require a final engagement report. This report communicates the results and recommendations of the internal audit activity's findings, regardless of the type of engagement. The final engagement report is critical for ensuring transparency and accountability in both assurance and consulting services, providing essential feedback to stakeholders.The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing. Question 3. (Single Select) The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review? A: Internal auditors found no instances of double billing and concluded there were no significant risks in this area. B: Internal auditors documented the scope and methodology of the data testing. C: Internal auditors discussed with management how data is safeguarded. D: Internal auditors received formal performance feedback from the engagement supervisor. Correct Answer: B Explanation: According to IIA guidance, demonstrating due professional care includes adequately planning and supervising the engagement, and documenting the scope and methodology of the audit procedures performed. Option B best demonstrates that internal auditors exercised due professional care by documenting the scope and methodology of the data testing, which is essential for ensuring the engagement's objectives are achieved, and any conclusions drawn are well-supported.The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing. https://boost2certify.com/iia/iia-cia-part1 Page 3 of 6

4. Question 4. (Single Select) While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take? A: Proceed with the audit engagement, but do not include the relative's information. B: Have the chief audit executive and management determine whether the auditor should continue with the audit engagement. C: Disclose in the engagement final communication that the relative is a customer. D: Immediately withdraw from the audit engagement. Correct Answer: B Explanation: When faced with a potential conflict of interest, as in the case where an internal auditor learns of a large loan made to another auditor's relative, the appropriate action is to refer the matter to higher authorities within the organization. Option B, having the chief audit executive and management determine whether the auditor should continue with the audit engagement, ensures that any potential conflict is managed properly and maintains the integrity of the audit process.The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing. Question 5. (Single Select) Which of the following is most likely to be considered a control weakness? A: Vendor invoice payment requests are accompanied by a purchase order and receiving report. B: Purchase orders are typed by the purchasing department using prenumbered forms. C: Buyers promptly update the official vendor listing as new supplier sources become known. D: Department managers initiate purchase requests that must be approved by the plant superintendent. https://boost2certify.com/iia/iia-cia-part1 Page 4 of 6

5. Correct Answer: D Explanation: A control weakness in the context of internal control over purchasing might be seen in the process where department managers initiate purchase requests that must be approved by the plant superintendent. If the approval process is not robust, this could lead to conflicts of interest or lack of independent review, especially if the superintendent has significant influence or control, and there are no further checks or balances. This situation could potentially allow for inappropriate approvals without sufficient oversight, representing a control weakness.Internal control frameworks, such as COSO (Committee of Sponsoring Organizations of the Treadway Commission). https://boost2certify.com/iia/iia-cia-part1 Page 5 of 6

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