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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 - External quality assessments - Internal quality assessments
Topic 2: Proficiency and Due Professional Care	- Competence and skills requirements - Due professional care in engagements
Topic 3: 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 4: Independence and Objectivity	- Individual objectivity and impairment - Organizational independence

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IIA Internal Audit Fundamentals Sample Questions (Q282-Q287):

NEW QUESTION # 282
In a manufacturing organization, all sales prices are determined centrally and are electronically sent to the distribution centers to update their sales price tables.
Any pricing deviations must be approved by central headquarters. To determine how this process is functioning, an internal auditor should:

A. Identify who approves the shipment of goods and how the goods are priced.
B. Develop a flowchart of the sales order process to determine how orders are taken and priced.
C. Obtain a copy of the existing flowchart for the computer program to determine how price data are accessed.
D. Document the flow of sales price information, and determine how the table is accessed and updated.

Answer: D

NEW QUESTION # 283
Which of the following is the strongest red flag for bribery that is usually associated with the rationalization element of the fraud triangle?

A. Poor compensation of employees.
B. Employees living beyond their means.
C. Employees' unrestricted access to sales information.
D. Too much trust in key employees.

Answer: B

NEW QUESTION # 284
Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?

A. A periodic quality self-assessment of the internal audit activity identified a number of improvement areas with regard to key performance indicators.
B. One of the organization's senior internal auditors owns a side business, though to date, no sales have been made to this business.
C. The annual internal audit plan includes performance audits of main business processes, but reviews of high-risk development projects were not considered.
D. The internal audit activity committed to carrying out an audit of documentation on investment hedging, and a hedging expert was contracted to assist with the engagement.

Answer: C

Explanation:
The internal audit activity must align its activities with the organization's risks. Not considering high-risk development projects in the audit plan could indicate nonconformance with the Standards, specifically regarding risk-based planning. The Standards require internal audit to consider all significant risks when developing the audit plan, and failing to do so may require disclosure of nonconformance. References: The IIA's International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2010 - Planning, and Standard 1300 - Quality Assurance and Improvement Program.

NEW QUESTION # 285
According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

A. Ensuring the internal audit activity reports functionally to the board of directors.
B. Ensuring the internal audit activity is not found fallible during audit engagements.
C. Developing policies and procedures for the internal audit activity.
D. Undertaking all engagements that management requests of the internal audit activity.

Answer: C

Explanation:
Developing policies and procedures for the internal audit activity is the most effective way for the chief audit executive (CAE) to ensure that internal auditors demonstrate due professional care. This action provides a framework and guidelines that direct auditors on how to perform their duties in accordance with the highest standards of audit practice, including adherence to ethical and professional standards set out by bodies such as the IIA.
IIA Standard 1300 - Quality Assurance and Improvement Program

NEW QUESTION # 286
Which of the following is considered a common red flag indicator in helping to uncover fraud?

A. Repeated poor performance.
B. Termination from previous employer.
C. Experiencing financial difficulty.
D. Improper segregation of duties.

Answer: C

NEW QUESTION # 287
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