Free IIA-CIA-Part1 Exam Braindumps

Which of the following documents is most appropriate in promoting the objectivity of the internal audit
activity?

1. A. Usage of IT system policy.
2. B. Risk management framework.
3. C. Acceptance of gifts policy.
4. D. Personal responsibility policy.

Correct Answer: C

As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

1. A. Organizational independence.
2. B. Professional objectivity.
3. C. Due professional care.
4. D. Individual proficiency.

Correct Answer: B

According to The IIA's Code of Ethics, which of the following is true?

1. A. Confidentiality requires that auditors disclose all material facts known to them.
2. B. Integrity requires that auditors perform internal audit services in accordance with the Standards.
3. C. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
4. D. Confidentiality requires that auditors be prudent in the use and protection of client information.

Correct Answer: D

According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

1. A. Accepting a consulting request in the IT department without possessing the requisite experience.
2. B. Providing personal tax preparation services for a fee for several employees during the lunch hour.
3. C. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.
4. D. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.

Correct Answer: C

An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

1. A. Risk identification.
2. B. Risk appetite.
3. C. Risk capacity.
4. D. Risk tolerance.

Correct Answer: D