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IIA-CIA-Part1 certification exam covers the fundamental principles of internal auditing. It includes topics such as risk management, governance, internal control, and fraud risk. IIA-CIA-Part1 exam also focuses on the International Professional Practices Framework (IPPF), which is a comprehensive guide for internal auditors. The IPPF covers the mandatory guidance, recommended guidance, and supplements to the guidance.
To be eligible for the IIA-CIA-Part1 exam, candidates must have a minimum of two years of work experience in internal auditing or a related field. IIA-CIA-Part1 Exam consists of 125 multiple-choice questions and must be completed within two and a half hours. It covers six domains, including governance and risk management, organizational structure and business processes, communication, management and leadership principles, IT and business continuity, and financial management. Upon passing the Essentials of Internal Auditing exam, candidates will be well-prepared to advance their careers in internal auditing and take on more challenging roles within their organizations.
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IIA-CIA-Part1 certification exam is a comprehensive exam that covers a wide range of topics, including internal audit basics, risks and controls, governance, and business processes. IIA-CIA-Part1 exam is conducted by the Institute of Internal Auditors (IIA), which is a globally recognized organization for internal auditors. The IIA-CIA-Part1 Certification Exam is an essential requirement for individuals who want to pursue a career in internal auditing, as it validates their knowledge and skills in the field.
IIA Internal Audit Fundamentals Sample Questions (Q48-Q53):
NEW QUESTION # 48
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?
- A. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
- B. They are in violation of neither the IIA Code of Ethics nor the Standards.
- C. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
- D. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
Answer: B
NEW QUESTION # 49
Which of the following examples best describes how an internal auditor should behave while listening to an engagement client talk about human resource process problems?
- A. The auditor should integrate the information the client provides with the information that is already known.
- B. The auditor should gather their thoughts in order to have a response immediately ready for the client.
- C. The auditor should make an internal note of the client's gestures, demeanor, and body language, rather than paying close attention to the content of the discussion.
- D. The auditor should mentally plan the next steps of the audit engagement.
Answer: A
NEW QUESTION # 50
Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization's ethical climate?
I. Review formal and informal processes within the organization that could promote unethical behavior.
II. Conduct surveys of employees, suppliers, and customers regarding ethics.
III. Assess the employees' knowledge of and compliance with the organization's code of conduct.
- A. I, II, and III.
- B. I only
- C. II and III only
- D. I and II only
Answer: A
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 51
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 tolerance.
- B. Risk capacity.
- C. Risk retention.
- D. Risk appetite.
Answer: D
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 # 52
Fraud is most frequently detected by:
- A. Following up on tips from employees or citizens.
- B. Performing periodic reconciliations over cash and other assets.
- C. Following up on analytical review of high-risk areas.
- D. Performing unannounced audits or reviews of programs or departments.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 53
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