Financial CIA-I Exam Questions in PDF and Online

QUESTION: 6

According to the Standards, the organizational status of the internal audit activity

Must be sufficient to permit the accomplishment of its audit responsibilities.
Is best when the reporting relationship is direct to the board of directors.
Requires the board's annual approval of the audit schedules, plans, and budgets.
Is guaranteed when the charter specifically defines its independence.

Answer(s): A

An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by the auditor, would represent a conflict of interest?

Monitoring the allowance for doubtful accounts.
Writing procedures for the handling of duplicate payments.
Signing timekeeping cards for subordinates.
Reviewing shipping documents for accuracy.

Answer(s): B

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QUESTION: 8

Two individuals are being considered for an audit team that is to perform a highly technical review. Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?

I). Person A is a member of the internal audit staff and has the required technical skills.
Person A participated in a controls review of the system to be audited when it was being developed.
II). Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.

I only.
II only.
Both I and II.
Neither I nor II.

Answer(s): D

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QUESTION: 9

Management asked the internal audit activity to evaluate the appropriateness of self- insuring against casualty losses and health care for the organization's employees. Should the chief audit executive engage an actuarial consultant to assist in the audit engagement if these skills do not exist on staff?

No, because the internal audit activity is skilled in assessing controls and the insurance control concepts are not distinctly different from other control concepts.
No, because it is a normal audit function to assess risk; this audit engagement is therefore not unique.
Yes, because an actuarial consultant is essential to determine whether the health-care costs are reasonable.
Yes, because an actuarial consultant has skills, not usually found in the internal audit activity, to identify and quantify self-insurance risks.

Answer(s): D

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QUESTION: 10

Which of the following would be the best source of information for a chief audit executive to use in planning future audit staff requirements?

Discussions of audit needs with executive management and the audit committee.
Review of audit staff education and training records.
Review of audit staff size and composition of similar-sized companies in the same industry.
Interviews with existing audit staff.

Answer(s): A

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

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QUESTION: 6

QUESTION: 7

QUESTION: 8

QUESTION: 9

QUESTION: 10