Financial CIA-I Exam Questions in PDF and Online

Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

The department makes long-term investment risk decisions to maximize return on investment.
The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.
any department functions are duplicated or verified by other department employees.
Deficiencies were found in the appropriate authorization of transactions.

Answer(s): A

According to the Standards, which of the following best describes the concept of due professional care?

Internal auditors must apply the diligence and skill expected of a reasonably prudent and competent internal auditor.
Internal auditors must possess the knowledge, skills, and other competencies needed to perform their audit responsibilities.
Internal auditors must have sufficient knowledge to identify fraud.
Internal auditors must refrain from participating in an engagement when they lack sufficient knowledge, skills, and competencies to assess the audit area fully.

Answer(s): A

Which of the following is not true with regard to the internal audit charter?

Answer(s): B

In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:

Access to and frequency of communications with the board of directors or its audit committee.
The criteria of education and experience considered necessary when filling vacant positions on the audit staff.
The degree to which auditors assume operating responsibilities.
The scope and depth of engagement objectives for the audit engagements included in the review.

Answer(s): B

To enhance the independence of both the internal and external audit functions, audit committees should be composed of

A rotating subcommittee of the board of directors or its equivalent.
A combination of external members of the board of directors and company officers.
Members from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.
Only external members of the board of directors or other similar oversight committees.

Answer(s): D

Financial Certified Internal Auditor (CIA) CIA-I Exam Questions in PDF