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IIA IIA-CIA-Part1 Exam Syllabus Topics:

Section	Objectives
Topic 1: Quality Assurance and Improvement Program (QAIP)	- Continuous improvement of internal audit function - Internal quality assessments - External quality assessments
Topic 2: Foundations of Internal Auditing	- IIA Standards and Code of Ethics overview - Internal audit definition, purpose, and value - Internal audit role in governance, risk, and control
Topic 3: Proficiency and Due Professional Care	- Due professional care in engagements - Competence and skills requirements
Topic 4: Independence and Objectivity	- Organizational independence - Individual objectivity and impairment

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IIA Internal Audit Fundamentals Sample Questions (Q416-Q421):

NEW QUESTION # 416
The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?

A. Remove the new internal auditor from the engagement team.
B. Closely supervise the new auditor and carefully review his work.
C. Discuss the matter with the appropriate personnel to alleviate concerns.
D. Take no action, as there is no impairment to independence.

Answer: C

Explanation:
The most appropriate action for the Chief Audit Executive (CAE) to take in the scenario where staff might mistakenly believe the new internal auditor is related to the procurement manager is to discuss the matter with the appropriate personnel to alleviate concerns. This action ensures that concerns about independence and objectivity are addressed transparently, maintaining trust in the internal audit function.
The IIA's Code of Ethics and standards on objectivity, which stress the importance of maintaining and demonstrating impartiality in all audit engagements.

NEW QUESTION # 417
Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

A. CAATs are more objective than the traditional methods in interpreting the results.
B. CAATs can process the results faster and thus give a higher level of assurance.
C. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
D. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.

Answer: D

NEW QUESTION # 418
Which of the following is the most important limitation on the effectiveness of audit committees?

A. Audit committee members are compensated by the organization and thus favor a stockholder view.
B. Audit committees devote most of their efforts to external audit concerns and do not pay much attention to internal auditing and the overall control environment.
C. Audit committees may be composed of independent directors; however, those directors may have close personal and professional friendships with management.
D. Audit committee members do not normally have degrees in the accounting or auditing fields.

Answer: C

Explanation:
Section: Volume B

NEW QUESTION # 419
Which of the following processes or tools can be used as ongoing internal assessments of the performance of the internal audit activity?
1. Analyses of audit plan completion and cost recoveries.
2. Selective peer reviews of work papers by staff involved in the respective audits.
3. Self-assessment of the internal audit activity with on-site validation by a qualified independent reviewer.
4. Feedback from audit customers and stakeholders.

A. 3 and 4 only
B. 1 only
C. 1 and 2 only
D. 1, 2, and 4 only

Answer: D

NEW QUESTION # 420
During an audit of an organization's accounts payable area, an internal auditor identified anomalies in the information examined that may indicate potential fraud. Which test should the auditor perform first to verify this?

A. Identify duplicated organizational transactions.
B. Verify the completeness and integrity of the data being analyzed.
C. Analyze all transactions within the targeted area.
D. Check control totals that have may have been falsified.

Answer: C

NEW QUESTION # 421
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