Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Finance Sample Papers » CIA Sample Papers » CIA Exam Questions -- Internal Auditing Standards

CIA Exam Questions -- Internal Auditing Standards

HTML clipboard

CIA Exam Questions -- Internal Auditing Standards

1. According to the Statement of Responsibilities, the authority of the internal auditing department is limited to that granted by
a. The board of directors and the controller
b. Senior management and the Standards
c. Management and the board of directors
d. The audit committee and the chief financial officer

2. A company's new president meets the director of internal auditing for the first time and asks the director to briefly describe the department's overall responsibility. The director states that internal auditing's overall responsibility is to
a. Act an an independent appraisal function to review operations as a service to management by measuring and evaluating the effectiveness of controls
b. Review the means of safeguarding assets and, as appropriate, verify the existence of such assets
c. Ensure compliance with policies, plans, procedures, laws and regulations that could have a significant impact on operations and reports
d. Review the reliability and integrity of financial and operating information and the means used top identify, measure, classify and report such informtion

3. A charter is being drafted for a newly formed internal auditing department. Which of the following best describes the appropriate opganizational status that should be incorporated into the charter?
a. The director of internal auditing should report to the chief executive officer but have access to the board of directors
b. The director of internal auditing should be a member of the audit committee of the board of directors
c. The director of internal auditing should be a staff officer reporting to the chief financial officer
d. The director of internal auditing should report to an administrative vice president

4. Under Standard 110, the purpose, authority and responsibility of the internal audit department should be defined in a formal written document (charter). A written charter, approved by the board of directors, is primarily meant to enhance the department's
a. Due professional care
b. Stature within the organization
c. Relationship with management
d. Independence

5. An auditor's objectivity could be compromised in all of the following situations except
a. A conflict of interest
b. Auditee familiarity with auditor due to lack of rotation in assignments
c. Auditor assumption of operational duties on a temporary basis
d. Reliance on outside expert opinion when appropriate

6. According to the Standards, internal auditors should review the means of physically safeguarding assets from losses arising from
a. Misapplication of accounting principles
b. Procedures that are not cost justified
c. Exposure to the elements
d. Underusage of physical facilities

7. In conducting an appraisal of the economy and efficiency with which resources are employed, an internal auditor is responsible for
a. Determining whether operating standards have been established
b. Verifying the existence of assets
c. Reviewing the reliability of operating information
d. Verifying the accuracy of asset valuation

8. According to the Standards, an internal auditor's role with respect to operating objectives and goals includes
a. Approving the operating objectives or goals to be met
b. Determining whether underlying assumptions are appropriate
c. Developing and implementing control procedures
d. Accomplishing desired operating program results

9. The Standards require that the internal audit director establish and maintain a quality assurance program to evaluate the operations of the internal audit department. All of the following are considered elements of a quality assurance program except
a. Annual appraisals of individual internal auditors' performance
b. Internal reviews of audits completed
c. Supervision of audit work
d. External reviews to assess compliance with standards

10. As used in the Standards when discussing audit planning or risk assessment, the term risk is best defined as the probability that
a. An internal auditor will fail to detect a material error or event that causes financial statements or internal reports to be misstated or misleading
b. An event or action my adversely affect the organization
c. Management will, either knowingly or unknowingly, make decisions that increase the potential liability of the organization
d. Financial statements and/or internal records will contain material error

11. Internal auditing is a dynamic profession. Which of the following best describes the scope of internal auditing as it has developed to date?
a. Internal auditing involves appraising the economy and efficiency with which resources are employed
b. Internal auditing involves evaluating compliance with policies, plans, procedures, laws and regulations
c. Internal auditing has evolved to verifying the existence of assets and reviewing the means of safeguarding assets
d. Internal auditing has evolved to more of an operational orientation from a strictly financial orientation

CIA Exam Answers -- IIA Standards
 

  1. C
  2. A
  3. A
  4. D
  5. D
  6. C
  7. A
  8. B
  9. A
  10. B
  11. D



More Finance Sample Papers
1


put comment
Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2022. All Rights Reserved.