CIA EXAM PART 1 - PRACTICE EXAM

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CIA EXAM PART 1 - PRACTICE EXAM

CORRECT SOLUTIONS.

The CAE is considering different methods of providing training in personal communication skills for the entire internal audit staff. Which of the following methodologies would be the most effective means of delivering such training?

• Computer-based training in human relations skills
• Individual coaching by a professional communications

specialist

• Self-study booklets explaining communication theory
• Lecture course on communications delivered by a

motivational speaker - correct answer- B) Individual coaching by a professional communications specialist

Which is an acceptable role for the internal audit activity in the risk management process?

• No role
• Managing specific risks if defined in the internal audit plan
• Active, continuous support in the process such as leadership

of oversight committees

• Managing and coordinating the risk management process -

correct answer- A) No role 1 / 4

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Which is a required type of knowledge, skill, and other competency for an internal auditor?

• Basic comprehension of internal audit standards,

procedures, and techniques required in performing engagements

• An understanding of management principles and good

business practices so deviations can be recognized and evaluated

• Proficiency in accounting principles and techniques for all

auditors

• Proficiency in subjects such as accounting, economics,

commercial law, quantitative methods, and IT - correct answer-

• An understanding of management principles and good

business practices so deviations can be recognized and evaluated

The bank's internal audit charter neither authorizes nor forbids the internal audit activity to perform assurances for outside parties. Which of the following conditions apply to providing the requested service?

• The vice president of finance may authorize the chief audit

executive to schedule the engagement without amending the charter.

• Providing assurances to outside parties is a violation of the

Standards. 2 / 4

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• The vice president of finance needs approval of the chief

financial officer or the audit committee before authorizing the chief audit executive to schedule the engagement without amending the charter.

• The charter should be amended to allow the internal audit

activity to provide assurance services to outside parties. - correct answer- D) The charter should be amended to allow the internal audit activity to provide assurance services to outside parties.

How should the process be handled when considering risk response (or risk treatment) when the organization uses an ERM environment?

• As an iterative process that looks at the big picture but also

departments and functions

• As a waterfall process that considers the risks at a holistic

level

• As a process that sets the risk tolerance at the enterprise

level and ensures that all departments adhere to it

• As a method for setting control activities that ensures that

collective risk limits are not exceeded in any individual instances - correct answer- A) As an iterative process that looks at the big picture but also departments and functions

An internal auditor is assigned financial audits. She performs the audits out of the audit department, downloads records electronically, communicates with the client through email, and 3 / 4

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uses audit software. Is the internal auditor demonstrating the required knowledge, skills, and competencies for an IA?

• Yes, the auditor is working very efficiently by taking

advantage of technology

• No, financial audits require working more closely with top

finance executives due to the need to provide assurance on ICFR for this type of audit client

• No, by limiting contact with the client, oral communications

skills are not being used to clearly and effectively convey items such as engagement objectives, evaluations, conclusions, and recommendations.

• Yes, the auditor is avoiding taking up too much of the audit

client's time, which is value-added, and is demonstrating professional skepticism by focusing primarily on financial - correct answer- C) No, by limiting contact with the client, oral communications skills are not being used to clearly and effectively convey items such as engagement objectives, evaluations, conclusions, and recommendations.

Goods received from a certain supplier occasionally arrive without a proper bill of lading. In these situation, the receiving clerk is directed to telephone the supplier and request a bill of lading by fax so that he or she can compare what was actually received to the bill and research any discrepancies. Which of the following is this type of control?

• application control
• preventative control
• governance control
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