IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 39 of 47, with answer review and explanations.

Question 191

It is important for a chief audit executive to seek formal approval from the board regarding an internal audit charter so that:

  1. The effectiveness of the internal audit activity can be measured.
  2. The status of the internal audit activity can be more clearly established.
  3. There is assurance that all internal audit activities will be completed.
  4. Improvements can be implemented in internal audit processes.

Question 192

Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales reports by division management? I. Hire a new internal auditor who has fraud investigation credentials. II. Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with, but independent of, sales. III. Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies. IV. Ask the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

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

Question 193

In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:

  1. Access to and frequency of communications with the board of directors or its audit committee.
  2. The criteria of education and experience considered necessary when filling vacant positions on the audit staff.
  3. The degree to which auditors assume operating responsibilities.
  4. The scope and depth of engagement objectives for the audit engagements included in the review.

Question 194

Which of the following best describes the procedures used by the representatives of an organization's stakeholders to provide oversight of the processes administered by management?

  1. Governance
  2. Control
  3. Risk management
  4. Monitoring

Question 195

Which of the following is most likely to be an element of an effective compliance program?

  1. The internal audit activity is assigned responsibility for overseeing the program.
  2. The program is communicated to employees in a video format on a one-time basis.
  3. The organization uses monitoring systems designed to detect improper activity.
  4. The organization obtains as much information as possible when performing background checks on employees.