Cia Part 1 Exam

Front 1

The primary purpose of a fishbone diagram is to

Back 1

Identify the possible causes of adverse conditions

Front 2

According to IIA guidance, the best example of a system application control is

Back 2

An input control over data integrity

Front 3

The objectives that can be best described as broad goals that promote the effective and efficient use of resources are

Back 3

Operational objectives

Front 4

The audit technique used to evaluate control design while also embodying auditing's analytical process is

Back 4

A risk and control matrix

Front 5

According to IIA guidance, the responsibility for periodically assessing the IAA lies with

Back 5

The board

Front 6

The decision made during the testing phase of a compliance audit that requires the most judgement by an internal auditor is

Back 6

What level of noncompliance is acceptable

Front 7

According to IIA guidance, the internal audit charter should be approved by senior management

Back 7

Before it is submitted to the board

Front 8

What is the underlying premise of the COSO enterprise risk management framework?

Back 8

Every entity exists to provide value for its stakeholders

Front 9

What would not be a factor for senior management to consider when determining the IIA's role in an organisation's risk management process?

Back 9

The extent to which the internal audit activity is outsourced

Front 10

What could be indicated by a company's profitability being lower than the industry norm?

Back 10

High risk

Front 11

According to IIA guidance, who approves the audit charter before it is submitted to the board?

Back 11

Senior management

Front 12

If an organisation has improved its internal controls due to an unsatisfactory report, when planning a follow up audit, the level of detection risk is [A] although the control risk is [B]

Back 12

A = unchanged

B = lower

Front 13

When would you use risk assessment software?

Back 13

When developing an annual audit plan

Front 14

What would have the strongest negative impact in determining the scope?

Back 14

Inadequate risk assessment

Front 15

Why does a CAE review external audit management letters and management response?

Back 15

To select areas to emphasise in future internal audit engagements

Front 16

Why is it important for a CAE to seek formal approval from the board regarding an internal audit charter?

Back 16

So that the status of the internal audit activity can be more clearly established

Front 17

What is the primary advantage of using computer assisted audit techniques (CAAT) to provide a higher level of assurance?

Back 17

The CAAT can examine the whole population of transactions rather than a sample, in order to identify exceptions and trends

Front 18

What is a characteristic of embezzlement?

Back 18

Unlawful conversion of assets that are in the possession of an employee

Front 19

What is a role of the board of directors in the governance process?

Back 19

Obtain assurance concerning the effectiveness of the organisation's governance systems

Front 20

What is the least effective form of risk management?

Back 20

People-based detective control

Front 21

What would provide the most reliable information on the risk associated with an auditable activity?

Back 21

Management assessment and corroboration by the internal audit activity

Front 22

What contributes to the effectiveness of the internal audit activity in an organisation?

Back 22

Appropriate terms of internal audit scope and responsibility in the charter

Front 23

The primary objective of risk-based auditing is to assess the

Back 23

Adequacy of controls

Front 24

What would be most relevant regarding the internal control environment?

Back 24

Documenting the organisational structure

Front 25

Who is responsible for establishing criteria for use by internal auditors in determining whether goals and objectives have been accomplished?

Back 25

Management is responsible for establishing the criteria

Front 26

What is a KPI for an internal audit function?

Back 26

Percent of required continuing education hours completed

Front 27

Should a bonus system be considered part of the control environment of an organisation and be considered in formulating a report on internal control?

Back 27

Yes

Front 28

What control would most likely prevent the input of an unreasonable number of labour hours into a costing system?

Back 28

Programmed limit tests of input fields

Front 29

Who would not be responsible for implementing significant organisational changes to a major corporation?

Back 29

Common stockholders

Front 30

According to the IPPF, what must a review team express an opinion on when performing an external assessment of an internal audit activity?

Back 30

Conformance with the standards

Front 31

What aspect of the audit function would be most impacted by a lack of coordination between an organisation's internal and external auditors?

Back 31

Efficiency

Front 32

The CAE should report functionally to the [A] and administratively to the [B] to facilitate independence.

Back 32

A = Board

B = CEO

Front 33

What is the primary purpose of a risk management programme?

Back 33

Reduce risk to a tolerable level

Front 34

What two internal auditor attributes are affected by a conflict of interest?

Back 34

Independence and objectivity

Front 35

What is true of a horizontal flowchart as compared to a vertical flowchart?

Back 35

It brings into sharper focus the assignment of duties and independent checks on performance

Front 36

which data collection strategy systematically tests the effects of various factors of an outcome?

Back 36

Modeling

Front 37

Can an auditor provide consulting services relating to operations for which they had previous responsibilities?

Back 37

Yes

Front 38

Are the structures of governance distinct from the structures of risk management?

Back 38

No

Front 39

What will have the greatest impact on the effectiveness of the internal audit activity?

Back 39

Appropriate definition of internal audit scope and responsibility in the charter

Front 40

An organisation references a customer order with an approved customer file and credit limit before accepting an order. Which type of control does this process exemplify?

Back 40

Information processing

Front 41

What is an advantage of email surveys compared with face-to-face interviews?

Back 41

They are less expensive

Front 42

Which type of objectives can be described as broad goals that promote the effective and efficient use of resources?

Back 42

Operational objectives

Front 43

According to IIA guidance, who is responsible for periodically assessing the IIA?

Back 43

The CAE

Front 44

Which of the following is a weakness of observation as audit evidence?

Back 44

It cannot b used to test the completeness assertion

Front 45

Which aspect of the audit function would be most impacted by a lack of coordination between an organisation's internal and external auditors?

Back 45

Efficiency

Front 46

Non-statistical sampling does not require

Back 46

A smaller sample size than if selected using statistical sampling