Latest [Apr 03, 2024] IIA-CIA-Part1 Exam Dumps – Valid and Updated Dumps [Q100-Q120]

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Latest [Apr 03, 2024] IIA-CIA-Part1 Exam Dumps – Valid and Updated Dumps

Free Sales Ending Soon – 100% Valid IIA-CIA-Part1 Exam Dumps with 230 Questions

Duration, language, and format of IIA-CIA-Part1 Exam

Language: Arabic, Chinese Simplified, Chinese Traditional, Czech, English, French, German, Hebrew, Indonesian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Thai, and Turkish
Format: Multiple choices, multiple answers
Length of examination: 150 mins
Number of Questions: 125
Passing score: 600

IIA-CIA-Part1 exam is suitable for individuals who are new to the field of internal auditing or professionals who want to enhance their knowledge and skills in this area. IIA-CIA-Part1 exam is particularly relevant for those who are working in internal audit departments, compliance functions, risk management, or other related functions. Passing IIA-CIA-Part1 exam not only demonstrates a high level of competency in the field but also opens up new career opportunities and enhances the earning potential of the candidate.

Q100. Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area.
Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?

Engage the former head of the institution’s derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.

Request that senior management allow a delay of the fraud investigation until the internal audit activity’s on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.

Request that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner with derivatives experience to perform all aspects of the investigation and subsequent reporting.

Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit executive approving the scope of the investigation and evaluating the adequacy of the work performed.

Q101. A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store’s assistant manager is responsible for checking the server for downloads and running the program that updates the store’s price file at the authorized price update time.
In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:

Decrease the risk that customers will be undercharged consistently for sales items.

Decrease the risk that item prices will sometimes be inaccurate.

Increase the risk that customers will be undercharged consistently for sales items.

Increase the risk that item prices will sometimes be inaccurate.

Q102. Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.

3 only

1 and 2 only

2 and 3 only

1, 2, and 3

Q103. Which of the following is a second line of defense in effective risk management and control?

Purchasing department.

Compliance department.

Credit department.

Internal audit department.

Q104. Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?

The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,

The auditor decided not to notify her supervisor that her brother-in-law was responsible for the project the auditor was expected to evaluate.

The auditor asked the audit client to copy requested files to her personal unencrypted memory stick because it was faster and more convenient.

The auditor was assigned to analyze the organization’s incentive program and spent long hours reviewing other employees’ bonuses,

Q105. Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.

The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.

The framework lists the core competencies internal auditors should possess before attempting to attain The IIA’s Certified Internal Auditor certification.

The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

Q106. Which of the following statements regarding organizational governance is not correct?

An effective internal audit function is one of the four cornerstones of good governance.

Those performing governance activities are accountable to the customer.

Accountability is one of the key elements of organizational governance.

Governance principles and the need for an internal audit function are applicable to governmental and not- for-profit activities.

Q107. Which of the following audit findings would have the least impact (either positive or negative) on a department’s control environment?

The department makes long-term investment risk decisions to maximize return on investment.

The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.

Many department functions are duplicated or verified by other department employees.

Deficiencies were found in the appropriate authorization of transactions.

Q108. While conducting fieldwork, an internal auditor decides to utilize standard operating procedure (SOP) questionnaires to gather information about a human resources department. Which of the following is an advantage of this method?

SOP questionnaires verify that a department is efficient and effective.

SOP questionnaires generally do not need to be cleared by management of the audited department.

SOP questionnaires are useful in identifying discrepancies and educating clients.

SOP questionnaires are the most comprehensive technique for data gathering in fieldwork.

Q109. Which of the following is most likely to impair the internal audit activity’s independence?

Undertaking audit work in an area where internal auditors lack the necessary skills.

Establishing an internal audit activity without documented policies and procedures.

Assigning compliance responsibilities to the chief audit executive.

Concluding that an internal control is effective without first obtaining evidence

Q110. During a complex financial compliance engagement, a senior internal auditor determines that current audit procedures are not sufficient for adequate testing She consults with a colleague and learns that a spreadsheet application contains a helpful tool She proceeds to use the tool to properly complete the evaluation Which of the following best describes the core competency displayed by the senior auditor?

Business acumen

Persuasion and collaboration

Critical thinking

Communication

Q111. According to IIA guidance, which of the following should be formally documented in the internal audit charter?

The internal audit activity’s responsibility for imposing risk management processes.

The internal audit activity’s responsibility for the FInance framework.

The nature of consulting services provided by the internal audit activity.

The budgeting process for the internal audit activity.

Q112. An accounts receivable clerk receives cash payments,posts the payments to customer accounts,and prepares the daily cash deposit.
The clerk has been stealing some cash and manipulating the customer payments to hide the theft.
This fraud could be detected with which of the following controls?

Monthly bank reconciliations are performed by the clerk on a timely basis.

Total cash deposits for the month are reconciled to the cash receipts journal.

Names,amounts,and dates on remittance advices are reconciled with the names,amounts,and dates recorded in the cash receipts journal.

Total cash deposits are compared with the bank reconciliation.

Q113. An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?

Engaging an external industry associate that performed a similar review for a supplier of the organization.

Selecting a team from an independent entity that previously employed the chief audit executive of the organization.

Using a team under the direction of the organization’s chief audit executive, and obtaining validation from a former manager of the internal audit activity.

Using the same external service provider because of its competency and experience with the organization.

Q114. An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor’s suspicions?

Credit memos issued after year end for goods shipped before year end.

Evidence of returned goods in the shipping and receiving area.

An unusual number of customer complaints.

The results of a complete physical inventory taken at year end.

Q115. The first stage in the development of a crisis management program is to:

Formulate contingency plans.

Conduct a risk analysis.

Create a crisis management team.

Practice the response to a crisis.

Q116. All of the following would normally be involved in preparing for and carrying out the internal audit activity’s annual plan except:

Establishing policies and procedures for workpapers and referencing.

Providing periodic activity reports to the audit committee on audit engagements in progress.

Assessing the amount of risk in major departments.

Training audit staff on appropriate audit methodologies for addressing any newly identified risks.

Q117. Which of the following controls would be most useful to prevent an employee from using the organization’s funds for inappropriate expenditures and falsifying financial records to conceal the fraud?

Segregating duties in the payroll processes.

Confirming receipt of goods or services.

Performing background checks on newly hired employees.

Requiring management approval for expenses.

Q118. Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee’s bank account.

Payroll personnel add employees and enter employee bank account numbers but process hours only as approved by the human resources department. Paychecks are
automatically deposited in the employee’s bank account.

Q119. Which of the following is a limitation of using observation as a manual audit procedure?

Observation provides information at a certain time and makes it difficult to draw representative conclusions.

Observation is not as persuasive as inquiry due to a lack of direct evidence.

Observation is performed specifically to test the validity of documented or recorded information.

Observation may cause individuals to behave less critically or carefully if they are aware that other forms of manual audit procedures have already taken place.

Q120. An external assessment of an organization’s internal audit activity was last completed four years ago Which of the following options would be acceptable this year if the internal audit activity is to fulfill the requirements of the Standards?

The internal audit activity conducts a self-assessment that is validated by a qualified and experienced internal auditor and then schedules a qualified, independent external assessor

The board nominates an independent individual from senior management in the organization to conduct an assessment of the internal audit activity

An external auditor conducts an audit of the organization which includes information about the internal audit activity

The chief audit executive schedules a self-assessment and the board approves the results