IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 18 of 47, with answer review and explanations.

Question 86

In order to exercise due professional care as defined in the International Professional Practices Framework, an internal auditor should: I. Consider the probability of significant noncompliance in each audit engagement. II. Perform assurance procedures with sufficient care to ensure that all risks are identified. III. Weigh the cost of assurance against the benefits.

  1. I and II only
  2. I and III only
  3. II and III only
  4. I, II, and III.

Question 87

In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:

  1. Availability of records and data.
  2. Potential impact of risks.
  3. Capabilities of audit personnel.
  4. Time required to complete the engagement.

Question 88

Organizations that use a highly structured command-and-control management approach are at greater risk of:

  1. Delayed response due to the inability to reach consensus among decision makers.
  2. Negative consequences that result from lower-level staff's unwillingness to confront errors by superiors.
  3. Erosion of staff morale due to perceptions of ineffective leadership.
  4. Waste and abuse of organizational resources resulting from management override of controls.

Question 89

In order to provide the most useful information for an organization's risk management decisions, which of the following should be assessed?

  1. Risk levels for future events based on the degree of uncertainty of those events and their cost of mitigation.
  2. Inherent and control risks and their impact on the extent of financial misstatements.
  3. Risk levels of current and future events, their effect on the achievement of the organization's objectives, and their underlying causes.
  4. Risk levels of current and future events, their impact on the organization's mission, and the potential for the elimination of existing risk factors.

Question 90

Which of the following represents the most effective governance structure? I. Operating - Executive - Internal - Management - Management - Auditing - Responsibility for risk - Oversight role - Advisory role - II. Oversight role - Responsibility for risk - Advisory role - III. Responsibility for risk - Advisory role - Oversight role - IV. Oversight role - Advisory role - Responsibility for risk -

  1. I Only
  2. II
  3. III
  4. IV