IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 37 of 47, with answer review and explanations.

Question 181

If management has not established a risk management process, the internal audit activity could.

  1. Take a proactive role that supplements traditional assurance activities.
  2. Identify and mitigate risks to the organization.
  3. Assume responsibility for the management of identified risks.
  4. Assume primary responsibility for determining if adequate and effective processes are in place.

Question 182

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

  1. The department makes long-term investment risk decisions to maximize return on investment.
  2. The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.
  3. Many department functions are duplicated or verified by other department employees.
  4. Deficiencies were found in the appropriate authorization of transactions.

Question 183

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

  1. Identifying risks to the organization's operations.
  2. Observing and analyzing controls.
  3. Prioritizing known risks.
  4. Reviewing organizational objectives.

Question 184

Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization? I. Areas where personal information is collected, used, stored, and disseminated. II. Inherent risk. III. Privacy practices of competitors. IV. Third-party recipients of information.

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

Question 185

A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud?

  1. Develop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.
  2. Require all submitted claims to be followed by a signed statement by the dentist testifying to the fact that the claimed procedures were performed.
  3. Send confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the insurance provider.
  4. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.