Free IIA-CIA-Part1 Exam Braindumps

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

1. A. Requesting a private meeting with senior management, without the presence of the chief audit executive.
2. B. Intervening during an audit involving ethical wrongdoing.
3. C. Discussing periodic reports of ethical breaches.
4. D. Authorizing an investigation of an unsafe product.

Correct Answer: B

According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?

1. A. Internal auditors should take a leading role in investigating all fraud-related cases.
2. B. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
3. C. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
4. D. Internal auditors are responsible for ensuring that fraud does not occur.

Correct Answer: B

In which of the following functions would fraud be most likely to occur?

1. A. Maintaining custody of inventory records.
2. B. Collecting payments on accounts.
3. C. Approving changes to employee records.
4. D. Preparing customer statements.

Correct Answer: B

Which of the following statements describes impairment to the internal auditor's objectivity?

1. A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
2. B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.
3. C. An internal auditor receives a promotional gift that is available to the organization's employees.
4. D. An internal auditor performs an assessment of the operations for which he was recently responsible.

Correct Answer: D

An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

1. A. Competent, corroborative evidence of future working capital requirements.
2. B. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
3. C. Competent, documentary evidence of future cash flow changes within the organization.
4. D. Sufficient, circumstantial evidence of the future solvency of the organization.

Correct Answer: C