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CIA Exam Part 1 - Practice Exam Questions With Correct Answers 2024
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CIA Exam Part 1 - Practice Exam Questions With Correct Answers 2024
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CIA Exam Part 1 - Practice ExamQuestions With Correct Answers 2024
The .CAE .is .considering .different .methods .of .providing .training .in .personal
.communication .skills .for .the .entire .internal .audit .staff. .Which .of .the .following
.methodologies .would .be .the .most .effective .means .of .delivering .such .training?
A) .Computer-based .training .in .human .relations .skills
B) .Individual .coaching .by .a .professional .communications .specialist
C) .Self-study .booklets .explaining .communication .theory
D) .Lecture .course .on .communications .delivered .by .a .motivational .speaker .- .correct
.answer.B) .Individual .coaching .by .a .professional .communications .specialist
Which .is .an .acceptable .role .for .the .internal .audit .activity .in .the .risk .management
.process?
A) .No .role
B) .Managing .specific .risks .if .defined .in .the .internal .audit .plan
C) .Active, .continuous .support .in .the .process .such .as .leadership .of .oversight .committees
D) .Managing .and .coordinating .the .risk .management .process .- .correct .answer.A) .No .role
Which .is .a .required .type .of .knowledge, .skill, .and .other .competency .for .an .internal
.auditor?
A) .Basic .comprehension .of .internal .audit .standards, .procedures, .and .techniques
.required .in .performing .engagements
B) .An .understanding .of .management .principles .and .good .business .practices .so
.deviations .can .be .recognized .and .evaluated
C) .Proficiency .in .accounting .principles .and .techniques .for .all .auditors
D) .Proficiency .in .subjects .such .as .accounting, .economics, .commercial .law, .quantitative
.methods, .and .IT .- .correct .answer.B) .An .understanding .of .management .principles .and
.good .business .practices .so .deviations .can .be .recognized .and .evaluated
The .bank's .internal .audit .charter .neither .authorizes .nor .forbids .the .internal .audit .activity .to
.perform .assurances .for .outside .parties. .Which .of .the .following .conditions .apply .to
.providing .the .requested .service?
,A) .The .vice .president .of .finance .may .authorize .the .chief .audit .executive .to .schedule .the
.engagement .without .amending .the .charter.
B) .Providing .assurances .to .outside .parties .is .a .violation .of .the .Standards.
C) .The .vice .president .of .finance .needs .approval .of .the .chief .financial .officer .or .the .audit
.committee .before .authorizing .the .chief .audit .executive .to .schedule .the .engagement
.without .amending .the .charter.
D) .The .charter .should .be .amended .to .allow .the .internal .audit .activity .to .provide
.assurance .services .to .outside .parties. .- .correct .answer.D) .The .charter .should .be
.amended .to .allow .the .internal .audit .activity .to .provide .assurance .services .to .outside
.parties.
How .should .the .process .be .handled .when .considering .risk .response .(or .risk .treatment)
.when .the .organization .uses .an .ERM .environment?
A) .As .an .iterative .process .that .looks .at .the .big .picture .but .also .departments .and .functions
B) .As .a .waterfall .process .that .considers .the .risks .at .a .holistic .level
C) .As .a .process .that .sets .the .risk .tolerance .at .the .enterprise .level .and .ensures .that .all
.departments .adhere .to .it
D) .As .a .method .for .setting .control .activities .that .ensures .that .collective .risk .limits .are .not
.exceeded .in .any .individual .instances .- .correct .answer.A) .As .an .iterative .process .that
.looks .at .the .big .picture .but .also .departments .and .functions
An .internal .auditor .is .assigned .financial .audits. .She .performs .the .audits .out .of .the .audit
.department, .downloads .records .electronically, .communicates .with .the .client .through
.email, .and .uses .audit .software. .Is .the .internal .auditor .demonstrating .the .required
.knowledge, .skills, .and .competencies .for .an .IA?
A) .Yes, .the .auditor .is .working .very .efficiently .by .taking .advantage .of .technology
B) .No, .financial .audits .require .working .more .closely .with .top .finance .executives .due .to
.the .need .to .provide .assurance .on .ICFR .for .this .type .of .audit .client
C) .No, .by .limiting .contact .with .the .client, .oral .communications .skills .are .not .being .used .to
.clearly .and .effectively . convey .items .such .as .engagement .objectives, .evaluations,
.conclusions, .and .recommendations.
D) .Yes, .the .auditor .is .avoiding .taking .up .too .much .of .the .audit .client's .time, .which .is
.value-added, .and .is .demonstrating .professional .skepticism .by .focusing .primarily .on
.financial .- .correct .answer.C) .No, .by .limiting .contact .with .the .client, .oral .communications
.skills .are .not .being .used .to .clearly .and .effectively .convey .items .such .as .engagement
.objectives, .evaluations, .conclusions, .and .recommendations.
Goods .received .from .a .certain .supplier .occasionally .arrive .without .a .proper .bill .of .lading.
.In .these .situation, .the .receiving .clerk .is .directed .to .telephone .the .supplier .and .request .a
.bill .of .lading .by .fax .so .that .he .or .she .can .compare .what .was .actually .received .to .the .bill
.and .research .any .discrepancies. .Which .of .the .following .is .this .type .of .control?
A) .application .control
B) .preventative .control
C) .governance .control
D) .detective .control .- .correct .answer.D) .detective .control
,An .adequate .system .of .internal .controls .is .most .likely .to .detect .an .irregularity .perpetrated
.by .a .
A) .single .manager
B) .single .employee
C) .group .of .managers .in .collusion
D) .group .of .employees .in .collusion .- .correct .answer.B) .single .employee
Which .activity .should .be .treated .as .a .clear .impairment .of .an .internal .auditor's
.independence .and .objectivity?
A) .Overseeing .installation .of .new .IT .equipment .to .ensure .compliance .with .the .Orgs
.objectives
B) .Participating .in .a .team .that .assesses .IT .acquisition .possibilities
C) .Reviewing .competitive .bids .for .development .of .new .sales-tracking .software .before .a
.purchase .decision .is .made
D) .Applying .for .a .position .in .a .different .organization's .IT .department .while .participating .in
.a .consulting .engagement .with .the .current .organization's .IT .department .- .correct
.answer.A) .Overseeing .installation .of .new .IT .equipment .to .ensure .compliance .with .the
.Orgs .objectives
An .organization .has .projected .the .direct .and .indirect .costs .of .relocating .some .of .its
.operations .offshore. .Based .on .analysis .results, .the .organization .decides .to .move .forward
.with .offshoring. .Which .of .the .following .statements .best .describes .this .outcome?
A) .The .major .risk .events .associated .with .success .are .high .in .impact .and .high .in .likelihood
B) .the .analysis .determined .that .pervasive .risk .is .minimal
C) .the .decision .falls .within .the .organization's .risk .appetite
D) .Inherent .risk .is .lower .than .residual .risk .- .correct .answer.C) .the .decision .falls .within .the
.organization's .risk .appetite
In .the .final .report .for .an .internal .audit, .the .internal .auditor .states .that .security .controls .are
.at .the .same .level .of .effectiveness .as .in .the .previous .audit. .There .is .no .mention .that
.control .activities .in .the .previous .audit .were .found .to .be .unsatisfactory. .According .to .the
.Code .of .Ethics, .this .communication .is...
A) .specific .but .not .ethical
B) .prudent .and .competent
C) .balanced .and .objective
D) .potentially .biased .- .correct .answer.D) .potentially .biased
Internal .auditing .is .unique .in .that .its .scope .often .encompasses .all .areas .of .an
.organization. .It .is .not .possible .for .each .internal .auditor .to .possess .detailed .competence
.in .all .areas .that .might .be .audited. .However, .which .of .the .following .competencies .is
.required .by .the .Standards .for .every .internal .auditor?
, A) .proficiency .in .management .principles
B) .taxation .and .law .as .it .applies .to .the .operation .of .the .organization
C) .sufficient .knowledge .of .key .information .technology .risks .and .controls
D) .proficiency .in .accounting .principles .- .correct .answer.C) .sufficient .knowledge .of .key
.information .technology .risks .and .controls
Who .should .be .the .direct .recipient .of .reports .that .show .the .results .of .periodic .reviews .for
.internal .assessment .of .the .internal .audit .function?
A) .Senior .Management
B) .process .owners
C) .board .of .dire
D) .CAE .- .correct .answer.D) .CAE
Which .of .the .following .is .the .appropriate .way .to .respond .to .an .ethics .violation .that
.involves .workplace .theft .in .the .U.S.?
A) .report .the .issue .directly .to .legal .authorities
B) .Terminate .the .employee, .but .press .charges .only .if .the .employee .fails .to .return .all .of
.the .funds.
C) .Start .a .progressive .disciplinary .process .with .counseling .or .probation .as .the .first .step
D) .Terminate .the .employee, .but .do .not .press .charges .to .keep .the .matter .from .becoming
.public. .- .correct .answer.A) .report .the .issue .directly .to .legal .authorities
Which .is .a .prerequisite .in .order .for .the .people, .processes, .and .technologies .that .are .put
.in .place .to .mitigate .ethics .and .compliance .risks .to .be .effective?
A) .A .well-funded .organizational .compliance .function .that .serves .as .the .first .line .of
.defense
B) .An .organizational .code .of .conduct .that .is .written .in .the .hearts .of .the .organization's
.people .rather .than .on .paper
C) .As .much .emphasis .on .the .means .to .the .end .as .the .end .results .themselves
D) .Values .that .emphasize .aggressive .risk .taking .so .long .as .it .is .directed .toward .achieving
.strategic .objectives .- .correct .answer.C) .As .much .emphasis .on .the .means .to .the .end .as
.the .end .results .themselves
During .an .external .quality .assessment, .the .outside .review .team .determines .that .internal
.auditors .were .unable .to .comply .with .a .particular .standard .during .a .specific .audit. .The
.internal .auditors .noted .the .noncompliance .issue .in .their .final .engagement
.communications .but .still .claimed .that .their .work .was .conducted .in .accordance .with .the
.Standards. .How .does .this .situation .impact .the .internal .audit .activity's . use .of .the
.statement ."Conforms .with .the .International .Standards .for .the .Professional .Practice .of
.Internal .Auditing"?
A) .No .impact .on .use .of .statement
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