Question 1

A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed.In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:

Options :

A : Review the recommendations in all environmental audit reports.

B : Discuss with the environmental auditors the results of their reviews.

C : Periodically carry out a quality assessment of the environmental audit activity.

D : Include a review of environmental issues in some internal audit engagements.

Answer: C

Question 2

Which of the following is a primary benefit of implementing a governance, risk management, and compliance framework within an organization?

Options :

A : Fewer internal audits.

B : More effective interviews.

C : Automated risk management strategy tools.

D : Reduced assurance costs.

Answer: D

Question 3

According to IIA guidance, which of the following is true with regard to the internal audit charter?

Options :

A : It specifies the minimum resources needed for assurance engagements.

B : It requires final approval from senior management.

C : It defines the internal audit activity’s authority and responsibilities.

D : It describes the expectations for communicating the results of a quality assurance and improvement program.

Answer: D

Question 4

In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:

Options :

A : The audit committee has requested assurance on the treasury department-s compliance with a new policy on the use of financial instruments.

B : Treasury management has not instituted any risk management policies.

C : Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

D : The external auditors have indicated some difficulties in obtaining account confirmations.

Answer: D

Question 5

The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

Options :

A : Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.

B : Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.

C : Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.

D : Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.

Answer: A

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

Buying Options: