IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 25 of 47, with answer review and explanations.

Question 121

A quantitative risk assessment model has all of the following advantages except:

  1. Accommodating a large number of risk factors in the assessment.
  2. Providing documentation for the chief audit executive, who must defend the long-range audit plan.
  3. Providing a systematic method of applying weightings to risks and priorities.
  4. Removing the need for judgment on the part of the chief audit executive.

Question 122

Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

  1. Attending audit staff meetings.
  2. Verifying that all completed audit tests are fully documented.
  3. Publishing an article on the company's internal audit department.
  4. Obtaining experience on the job.

Question 123

In a manufacturing company, which department would be the internal audit activity's most reliable source of information on the controls over minimizing defective goods?

  1. Manufacturing.
  2. Quality control.
  3. Research and development.
  4. Inventory management.

Question 124

Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration:

  1. The type and nature of the activities to be examined.
  2. Whether employees in key positions of trust are bonded.
  3. The history of losses suffered by the company.
  4. The results of prior risk assessments.

Question 125

Which of the following is true with respect to the risk assessment process?

  1. The ethical climate should not be included since this factor cannot be measured quantitatively.
  2. More than one risk factor may have to be used to ensure that the risk assessment is comprehensive.
  3. Each risk factor should be given equal weighting in order to reduce the opportunity for bias.
  4. The risk assessment process should be conducted at least every three years.