[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 101-110

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QUESTION 101

Due to urgent requests from management, a busy internal audit activity finds that it can no longer meet all of its commitments contained in the annual audit plan. The best course of action for the chief audit executive to take would be to:

 

A.

Continue with the plan and seek opportunities to adjust priorities and reallocate resources.

B.

Advise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.

C.

Advise the board and senior management and request a reassessment of the plan.

D.

Advise the board immediately and seek their support for additional resources to meet the needs of the plan.

 

Correct Answer: C

 

 

QUESTION 102

Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?

 

I. Areas where personal information is collected,used,stored,and disseminated.

 

II. Inherent risk.

 

III. Privacy practices of competitors.

 

IV. Third-party recipients of information.

 

A.

III only

B.

I and II only

C.

I, II, and IV only

D.

I, II, III, and IV.

 

Correct Answer: C

 

 

QUESTION 103

The main reason to establish internal controls in an organization is to:

 

A.

Encourage compliance with policies and procedures.

B.

Safeguard the resources of the organization.

C.

Ensure the accuracy, reliability, and timeliness of information.

D.

Provide reasonable assurance on the achievement of objectives.

 

Correct Answer: D

 

 

QUESTION 104

A quantitative risk assessment model has all of the following advantages except:

 

A.

Accommodating a large number of risk factors in the assessment.

B.

Providing documentation for the chief audit executive, who must defend the long-range audit plan.

C.

Providing a systematic method of applying weightings to risks and priorities.

D.

Removing the need for judgment on the part of the chief audit executive.

 

Correct Answer: D

 

 

QUESTION 105

When planning the work program for an assurance engagement,an internal auditor should first review the department’s business objectives and then:

 

A.

Identify risks.

B.

Review controls.

C.

Determine scope.

D.

Evaluate vulnerabilities.

 

Correct Answer: A

 

 

QUESTION 106

Reportable audit findings mustbe:

 

I. Documented by facts.

 

II. Supported by relevant evidence.

 

III. Agreed to by management of the audited area.

 

IV. Convincing enough to compel corrective action.

 

A.

I and IV only

B.

II and III only

C.

I, II, and IV only

D.

I, II, III, and IV.

 

Correct Answer: C

 

 

QUESTION 107

Which of the following controls would most likely prevent the input of an unreasonable number of labor hours into a costing system?

 

A.

Recalculation tests during processing.

B.

Programmed limit tests of input fields.

C.

Reconciliation of input control totals.

D.

Consistency checks of data in input fields.

 

Correct Answer: B

 

 

QUESTION 108

Which of the following factors related to an organization’s performance management system would not contribute to the organization’s success?

 

A.

Performance management is linked to competence and knowledge management.

B.

Subordinates and superiors have shared responsibility for the performance management process.

C.

Staff members own the performance management process, thereby ensuring implementation and accountability.

D.

Performance management is integrated into other organizational processes and human resource processes.

 

Correct Answer: C

 

 

QUESTION 109

Which of the following best describes the procedures used by the representatives of an organization’s stakeholders to provide oversight of the processes administered by management?

 

A.

Governance

B.

Control

C.

Risk management

D.

Monitoring

 

Correct Answer: A

 

 

QUESTION 110

A bank uses a risk analysis matrix to quantify the relative risk of auditable entities. The analysis involves rating auditable entities on risk factors using a scale of 1 to 10,with 10 representing the greatest risk. A partial list of risk factors and the ratings given to three of the bank’s departments is provided below:

 

Department

 

Risk Factor

 

A

 

B

C

 

Control structure

 

9

 

5

 

7

 

Nature of assets in department

 

2

 

7

 

9

 

Dollar value of assets

 

6

 

6

 

8

 

Complexity of transactions

 

3

 

4

 

8

 

Which of the following statements regarding risk in the departments is true?

 

A.

As compared to departments A and C, department B has a stronger control system to compensate for the greater complexity of the department’s transactions and dollar value of its assets.

B.

The internal audit activity should schedule audits of department B more often than audits of department C because of the relative control strength of department C as compared to department B.

C.

The nature of department A’s control structure may be justified by the nature of the department’s assets and the complexity of its transactions.

D.

The relative ranking of the departments in order of their risk,from greatest to least risk, is: A; C; B.

 

Correct Answer: C

 

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