IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 31 of 47, with answer review and explanations.

Question 151

When reviewing operational risk for a department whose manager adopts a laissez-faire style of leadership, it is most important for the internal auditor to verify that:

  1. Employee decisions follow department and company guidelines.
  2. The manager considers employees' input when designing new procedures.
  3. Employees are empowered to deal with unusual or emergency situations.
  4. Management has adopted an open-door policy to assist with communication.

Question 152

Which of the following factors related to an organization's performance management system would not contribute to the organization's success?

  1. Performance management is linked to competence and knowledge management.
  2. Subordinates and superiors have shared responsibility for the performance management process.
  3. Staff members own the performance management process, thereby ensuring implementation and accountability.
  4. Performance management is integrated into other organizational processes and human resource processes.

Question 153

A chief audit executive used risk assessment to prepare the audit work schedule. Which of the following would be the least appropriate reason to modify the schedule?

  1. Need for coordination of audit activities with the external auditors.
  2. Request for postponement since the audit would be too complicated.
  3. Change in the relative risk of auditable activities during the year.
  4. Budget constraints or expansions.

Question 154

Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization's ethical climate? I. Review formal and informal processes within the organization that could promote unethical behavior. II. Conduct surveys of employees, suppliers, and customers regarding ethics. III. Assess the employees' knowledge of and compliance with the organization's code of conduct.

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

Question 155

Which of the following would provide the best assessment of an organization's ethical climate?

  1. Number of years that directors have been appointed to the board.
  2. Evidence of training provided to the board of directors on ethical issues.
  3. Clarity and consistency of consequences imposed by the board of directors for ethical violations.
  4. Frequency of fraud reported and results of subsequent investigations.