CIA-I Certification Exam Questions with AI Explanations

Which of the following is true with respect to the risk assessment process?

The ethical climate should not be included since this factor cannot be measured quantitatively.
More than one risk factor may have to be used to ensure that the risk assessment is comprehensive.
Each risk factor should be given equal weighting in order to reduce the opportunity for bias.
The risk assessment process should be conducted at least every three years.

Answer(s): B

A quantitative risk assessment model has all of the following advantages except

Accommodating a large number of risk factors in the assessment.
Providing documentation for the chief audit executive, who must defend the long- range audit plan.
Providing a systematic method of applying weightings to risks and priorities.
Removing the need for judgment on the part of the chief audit executive.

Answer(s): D

Which of the following statements is correct regarding risk analysis?

The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
The highest risk assessment should always be assigned to the area with the largest potential loss.
The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Answer(s): A

Which of the following is the primary concern of an internal auditor in a comprehensive audit of an organization?

Answer(s): B

Management should be included in the development of the audit plan in order to

Provide assurance that past audit recommendations have been properly implemented.
Select the audit tests that will be used for each engagement.
Verify that the highest risks are included in the risk-based audit plan.
Guarantee access to the organization's sites and records for audit work.

Answer(s): C

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