Free IIA-CIA-Part1 Exam Braindumps

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

1. A. From sharing to reduction.
2. B. From acceptance to reduction.
3. C. From sharing to avoidance.
4. D. From acceptance to avoidance.

Correct Answer: A

Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

1. A. Adequate signs are in place to assist in locating safety equipment.
2. B. Servers are secured individually to their racks by locks.
3. C. Foam fire extinguishers are operable to protect against electrical fires.
4. D. Swipe card access is required to gain access to the server room.

Correct Answer: A

Which of the following must be in existence as a precondition to developing an effective system of internal controls?

1. A. A monitoring process.
2. B. A risk assessment process.
3. C. A strategic objective-setting process.
4. D. An information and communication process.

Correct Answer: B

An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
* 1. Proficiency in analyzing key IT risks and controls.
* 2. The ability to recognize significant deviations from good business practices.
* 3. Knowledge of key indicators of fraud in tax reporting.
* 4. The ability to recognize the existence of problems related to tax accounting.

1. A. 1 and 4 only.
2. B. 3 and 4 only.
3. C. 2, 3, and 4 only.
4. D. 1,2, 3, and 4.

Correct Answer: B

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?

1. A. Ethics should vary with local customs in the organization's foreign operations.
2. B. Whistleblowing should be discouraged because it can cause distrust among employees.
3. C. Ethical behavior should be incorporated into performance evaluations.
4. D. Senior management should be granted specific exemptions to the code of ethics.

Correct Answer: C