New Year Special 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

CIA IIA-CIA-Part1 Release Date

Page: 31 / 54
Total 721 questions

Essentials of Internal Auditing Questions and Answers

Question 121

Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?

Options:

A.

Evaluate how the organization manages fraud risk.

B.

Establish procedures for improving risk management processes.

C.

Ensure risk responses are aligned with industry standards.

D.

Verify that organizational objectives are aligned with each department’s objectives.

Question 122

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

Options:

A.

Immediately notify management of the area under review and the other internal auditors involved in the engagement.

B.

Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

C.

Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

D.

Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

Question 123

A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?

Options:

A.

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with CSR.

B.

The board is responsible for ensuring that CSR objectives are established, risks are managed, performance is measured, and activities are appropriately monitored and reported.

C.

Management is responsible for ensuring that the organization’s CSR principles are communicated, understood, and integrated into decision-making processes.

D.

Generally, CSR activities are limited to the management of the organization; thus, employees do not have a responsibility for ensuring the success of CSR objectives.

Question 124

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?

Options:

A.

Periodic reinforcement of the internal audit activity's code of ethics disclosure practices.

B.

External assessments of the internal audit activity every five years.

C.

Audit committee review of every engagement report at the conclusion of the audit.

D.

Internal audit charter approved by the board.

Page: 31 / 54
Total 721 questions