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IIA IIA-CIA-Part1 Exam Syllabus Topics:

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

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IIA Internal Audit Fundamentals Sample Questions (Q788-Q793):

NEW QUESTION # 788
The organization's internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

A. Use an internal audit charter template from another organization that operates within the same industry.
B. Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team.
C. Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved.
D. Perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter

Answer: D

Explanation:
The most appropriate action for the chief audit executive to take when updating the internal audit charter is to perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter. This ensures that the charter will be updated according to the most current standards and practices required by the IIA. Staying updated with the latest guidance helps in maintaining compliance with professional standards and aligning the internal audit function's objectives and scope with organizational needs and regulatory expectations.References: IIA's International Standards for the Professional Practice of Internal Auditing and guidance on internal audit charters.

NEW QUESTION # 789
After the draft engagement report is issued, the manager of the area that was reviewed is informally interviewed by the engagement supervisor regarding the audit experience. Which of the following is most likely the purpose for this interview?

A. The manager's opinion will be used to form the final audit assessment and report rating.
B. Such an interview is performed when there is a need to dismiss an internal auditor
C. Feedback from the manager will contribute to the audit team's professional development
D. The manager will provide insights into the audited industry's trends

Answer: C

NEW QUESTION # 790
Instead of leaving its capital in a bank account with a low guaranteed interest rate, an organization's board approved a proposal to invest in a stock that could have a high expected return rate without taking any risk mitigation activities. Which risk concept does this decision illustrate?

A. Risk capacity.
B. Risk appetite.
C. Risk retention.
D. Risk tolerance.

Answer: B

Explanation:
Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. It reflects the organization's risk culture and strategy. In this case, the decision to invest in a stock that could have a high expected return rate without taking any risk mitigation activities illustrates a high risk appetite, as the organization is willing to accept a high level of uncertainty and volatility for a potential reward.

NEW QUESTION # 791
Why are preventative controls generally preferred to detective controls?

A. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.
B. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.
C. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions
D. Because preventive controls are more sensitive and identify more exceptions than detective controls.

Answer: B

NEW QUESTION # 792
Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation'?

A. Fraud specialists are better able to properly apply due professional care
B. Fraud specialists are better equipped to act as an expert witness in court
C. Fraud specialists are better at using computer-assisted audit techniques
D. Fraud specialists are better at using crime scene investigation techniques

Answer: D

NEW QUESTION # 793
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