IIA-CIA-Part1 Free Practice Test

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

1. A. To enable Triple Bottom Line reporting capability.
2. B. To facilitate the conduct of risk assessment.
3. C. To achieve and maintain sustainable development.
4. D. To fulfill regulatory and compliance requirements.

Correct Answer: C

According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?
* 1. Advocating the establishment of a risk management function.
* 2. Identifying and evaluating significant risk exposures during audit engagements.
* 3. Developing a risk response for the organization if there is no chief risk officer.
* 4. Benchmarking risk management activities with other organizations.
* 5. Documenting risk mitigation strategies and techniques.

1. A. 4 and 5 only.
2. B. 1.2, and 3 only.
3. C. 1.2. 4. and 5 only.
4. D. 2. 3. 4. and 5 only.

Correct Answer: C

Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

1. A. An independent third party has assessed the organization's system of internal controls to be adequate and effective.
2. B. The chief audit executive reports both functionally and administratively to the CEO.
3. C. The internal audit charter is drafted properly and approved by the appropriate parties.
4. D. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

Correct Answer: B

Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization's residual risk for online customer payments due?

1. A. $11, 250
2. B. $25, 000
3. C. $33, 750
4. D. $45, 000

Correct Answer: A

A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

1. A. Communication.
2. B. Persuasion and collaboration.
3. C. Business acumen.
4. D. Governance, risk, and control.

Correct Answer: A