CIA-I Certification Exam Questions with AI Explanations

QUESTION: 106

After several years in the engineering department, an engineer was transferred to the internal audit department. One month later, the new auditor was assigned to an
assurance engagement for the engineering department. When the auditor's former engineering supervisor suggested a change in the sample selection method, the auditor consulted with the audit supervisor. They determined that the suggested method would not be as representative and that the original selection method should be used. In this situation, the auditor

Maintained an independent mental attitude and is therefore objective.
Has subordinated professional judgment, and objectivity is therefore impaired.
Does not have objectivity since the auditor recently transferred from the engineering department.
Does not have independent organizational status since the auditor recently transferred from the engineering department.

Answer(s): C

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QUESTION: 107

To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should

Consider the scope of work and level of responsibility when establishing criteria for education and experience in filling internal auditing positions.
Ensure that each newly hired auditor is qualified in all of the disciplines needed to accomplish the department's audit mission.
Oversee a training program that matches the actual training provided with the interests of individual auditors.
Require all of the audit staff to pursue a minimum number of Continuing Professional Education hours each year.

Answer(s): A

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QUESTION: 108

In order to exercise due professional care as defined in the International Professional Practices Framework, an internal auditor should

I). Consider the probability of significant noncompliance in each audit engagement.
II). Perform assurance procedures with sufficient care to ensure that all risks are identified.
III). Weigh the cost of assurance against the benefits.

I and II only.
I and III only.
II and III only.
I, II, and III.

Answer(s): B

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QUESTION: 109

An internal auditor audited a department store's cash function. Which of the following actions would indicate a lack of due professional care by the auditor?

Based on a well-designed system of internal controls over the cash function, the audit report assured senior management that no irregularities existed.
A flowchart of the entire cash function was developed but only samples of transactions were tested.
The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
The auditor informed appropriate authorities within the organization about suspected wrongdoing but did not inform external authorities.

Answer(s): A

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QUESTION: 110

In order to save time, an audit manager no longer required that a standard internal control questionnaire be completed for each audit engagement. Does this represent a violation of the Standards?

Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the mandated approach to evaluate controls.
Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the most efficient method to do so.
No, because auditors may omit necessary procedures if there is a time constraint, based on audit judgment.
No, because auditors are not required to complete internal control questionnaires on every engagement.

Answer(s): D

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

Free Financial CIA-I Dumps Questions (page: 22)

QUESTION: 106

QUESTION: 107

QUESTION: 108

QUESTION: 109

QUESTION: 110