IIA-CIA-Part1 Dumps with Practice Exam Questions Answers [Q200-Q215]

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IIA-CIA-Part1 Dumps with Practice Exam Questions Answers

IIA-CIA-Part1 by Certified Internal Actual Free Exam Practice Test

NEW QUESTION 200
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:

The auditor located two checks for $9,000 each that contained one authorized signature.

The $10,000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10,000.

The director of accounting was not one of the authorized signers.

There were several instances in which successively numbered checks for amounts between $5,000 and $10,000 were made payable to the same vendor.

NEW QUESTION 201
Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
1. Company A exhibits a higher standard of ethical behavior than does company B.
2. Company A has established objective criteria by which an employee’s actions can be evaluated.
3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

2 only

3 only

1 and 2 only

2 and 3 only

NEW QUESTION 202
Which of the following procedures would be most effective in detecting fraud in electronically-submitted claims to insurance companies?

Creating a monitoring program that detects unusual claims to be investigated by the claims department.

Using generalized audit software to match the claimant identification number with a master list of valid policyholders.

Testing the accuracy of processing by using integrated test facilities.

Creating batch controls over all claims arriving from a particular organization and process those claims separately.

NEW QUESTION 203
The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional-level developers, internal auditors have the necessary skills and competencies, and the internal audit activity is well positioned to assume this responsibility. Which of the following would be a potential concern if the board member’s suggestion is adopted?

Due professional care.

Internal audit objectivity.

Risk management assurance.

Professional development.

NEW QUESTION 204
An internal auditor wants to use ratio analysis to examine efficiencies in an organization’s accounting department. Which of the following statements identifies a weakness of ratio analysis that should be considered by the auditor?

It requires a substantial investment of money.

It is only helpful for making comparisons across industries.

Computer software is required in order to draw conclusions from the data.

It utilizes financial information that may not have been checked for validity and reliability.

NEW QUESTION 205
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers’ accounts. Which of the following would most likely be the reason for the high volume of complaints?

An ineffective customer service department.

Poor controls in the invoice approval processes.

Check tampering by an employee.

Submission of fraudulent expense reports.

NEW QUESTION 206
Which of the following is the best example of a computer forensic audit activity?

An internal auditor compared vendor addresses to employee home addresses.

An internal auditor used analytical software to trace all disbursements processed on weekends.

An internal auditor tried to circumvent the logical access controls of the purchasing system.

An internal auditor recovered emails of an employee who was suspected of fraudulent activities

NEW QUESTION 207
Which statement accurately describes the authority of the internal audit activity as outlined in the audit charter?

The chief audit executive (CAE) shall report directly to the board and administratively to the CEO.

The CAE shall provide senior management and the board with performance updates quarterly.

The internal audit team shall have full access to the organization’s records, physical property, and personnel required to conduct audit engagements.

The internal audit activity shall maintain a quality assurance and improvement program in conformance with the Standards.

NEW QUESTION 208
During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

Report the deviations immediately to the audit committee.

Gather additional information to determine the cause of the deviations.

Conclude that the budget was unreasonably set and accept the deviations.

Perform alternative forms of analytical procedures which provide no deviations.

NEW QUESTION 209
Forty-five percent of an organization’s customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization’s residual risk for online customer payments due?

$11, 250

$25, 000

$33, 750

$45, 000

NEW QUESTION 210
Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

The contractor’s certification that it has not incurred any waste or inefficiencies.

A walk-through of the contractor’s manufacturing and development facilities.

An examination of the nature of contract expenses incurred.

A comparison of contract expenses with those of similar projects.

NEW QUESTION 211
An internal auditor performed a risk assessment and concluded that the controls over access privileges to a bank account were appropriate. Later, the auditor learned that a contractor was using a shared password provided by an authorized user of the account. Which of the following statements best describes the auditor’s application of due professional care?

Due professional care was exercised, despite the auditor’s failure to identify the significant risk.

Due professional care was not exercised because the auditor failed to identify all the significant risks during the risk assessment.

Due professional care was not exercised because the residual risk from the possibility of authorized users sharing their passwords was not considered.

Due professional care was not exercised because the auditor failed to conduct interviews to obtain testimonial evidence of possible password sharing

NEW QUESTION 212
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?

Invoices are not being mailed to customers.

An employee is tampering with customer checks.

Employees are submitting fraudulent expense reports.

The customer service department is not forwarding complaints to the accounts receivable department.

NEW QUESTION 213
An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?

Having an occupational health officer on the engagement team.

Determining that the claims have been classified properly.

Placing reliance on medical reports from the injured worker’s doctor.

Reviewing claims to ensure all accidents actually occurred in the workplace.

NEW QUESTION 214
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up. Which of the following statements is true about the auditor’s actions?

They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.

They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

They are in violation of neither the IIA Code of Ethics nor the Standards.

They are not in violation of the Standards but are in violation of the IIA Code of Ethics.

NEW QUESTION 215
Management has asked the chief audit executive (CAE) to provide assurance on the organization’s automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?

Accept the assignment and use control self-assessment to complete the project.

Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.

Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.

Accept the assignment if the engagement is included in the current audit plan,but inform senior management that the current audit staff does not have the knowledge and skills required.

Free Certified Internal IIA-CIA-Part1 Exam Question: https://www.real4dumps.com/IIA-CIA-Part1_examcollection.html

IIA-CIA-Part1 Dumps with Practice Exam Questions Answers [Q200-Q215]

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