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IIA-CIA-Part1 practice test questions, answers, explanations

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IIA Essentials of Internal Auditing Sample Questions (Q422-Q427):

NEW QUESTION # 422
Nearing the completion of fieldwork, an internal auditor shared the draft report findings with management prior to the closing meeting. During the closing meeting, management expressed dissatisfaction in that they were not familiar with some of the findings. Management also noted that some aspects of the report seemed confusing. Which of the following competencies appears to have been lacking in this scenario?

A. Communication.
B. Critical thinking.
C. Business acumen.
D. Persuasion.

Answer: A

Explanation:
The scenario indicates a lack of communication competency. Effective communication involves not only presenting audit findings clearly but also ensuring that management is adequately informed and understands the findings prior to the closing meeting. Sharing draft findings in a way that management was not familiar with and found confusing suggests shortcomings in how information was conveyed.
* Option B: Business acumen is understanding the business context, which is not the primary issue here.
* Option C: Persuasion involves influencing others, which is secondary to clear communication.
* Option D: Critical thinking is about analysis and judgment, not directly related to the communication issues described.
IIA Standard 2420: Quality of Communications.
IIA Practice Guide: Communication.

NEW QUESTION # 423
In which of the following functions would fraud be most likely to occur?

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

Answer: D

NEW QUESTION # 424
Which of the following should be the first step that an internal auditor takes to establish data integrity when building an audit working copy of a large database?

A. Verify that all required data was downloaded.
B. Review the data for statistical patterns.
C. Ensure that the data is efficiently organized within the database.
D. Search for anomalies in the extracted information.

Answer: A

NEW QUESTION # 425
The primary reason that a chief audit executive (CAE) reviews external audit management letters and management response is to:

A. Ensure that comments in the letter are supported by evidence.
B. Select areas to emphasize in future internal audit engagements.
C. Check the effectiveness of external audit resources used.
D. Verify that there has been no duplication of internal audit work.

Answer: B

NEW QUESTION # 426
What is the main difference between a consulting engagement versus an assurance engagement?

A. The objectives and scope of the engagement typically are directed by management.
B. Internal auditors must maintain objectivity while performing their work.
C. The nature of services provided are defined in the internal audit charter.
D. Internal auditors may assume management responsibilities.

Answer: A

NEW QUESTION # 427
......

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