Question 1

Which of the following best describes the assessment of risks?

Options :

A : Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels

B : Assess the likelihood and/or impact of risk on the achievement of organizational objectives

C : Assess the amount of risk an organization can accept while pursuing its objectives.

D : Assess alternative strategies to reduce or eliminate major risks.

Answer: B

Question 2

The chief audit executive (CAE) is requested to complete an IT engagement within the year. The CAE determines that the internal audit activity does not currently have the required competencies for the engagement. Which of the following would be the most appropriate response?

Options :

A : Assign a staff member from the IT department to assist with the engagement.

B : Decline the engagement since the internal audit activity lacks the required competencies.

C : Recruit a new staff member from a competing organization who has the required competencies.

D : Recruit a finance department manager who recently transferred from the IT department.

Answer: A

Question 3

Which of the following is a benefit from reduced testing during a particular phase of an audit engagement?

Options :

A : The size of the internal audit activity can be reduced.

B : There is less concern about assessing inherent risk.

C : The level of planned audit risk is lowered.

D : Additional audit hours are available for pursuing other engagement objectives.

Answer: D

Question 4

Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization’s internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to deteriorate, as previous audit reports also showed a large number of issues. What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

Options :

A : Take an accommodating approach and change the overall rating of the audit report.

B : Take a compromising approach by modifying the tone of the report, while maintaining the critical findings.

C : Take an assertive approach and be persistent in attempting to convince the director.

D : Take an assisting approach and offer to assist with the implementation of action plans.

Answer: B

Question 5

Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

Options :

A : Analytical review.

B : Inquiry

C : Document verification.

D : Observation

Answer: A

Free IIA-CIA-Part1-3P Mock Exam – Practice Online Confidently

Buying Options: