CIA-I Certification Exam Questions with AI Explanations

QUESTION: 196

An organization's external auditor has prepared a list of risks and issues and has recommended to senior management that the internal audit activity focus on these items. Senior management has forwarded the list to the chief audit executive (CAE). The CAE should

Incorporate the external auditor's requirements into the internal audit plan.
Ignore the external auditor's requirements because they are outside of the internal audit activity's planned scope of work.
Consider the issues raised by the external auditor for possible inclusion in the planned scope of work.
Report the risks and issues to the audit committee for possible future attention.

Answer(s): C

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QUESTION: 197

A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed. In these circumstances, the CAE should recommend to the audit committee that the internal audit activity

Review the recommendations in all environmental audit reports.
Discuss with the environmental auditors the results of their reviews.
Periodically carry out a quality assessment of the environmental audit activity.
Include a review of environmental issues in some internal audit engagements.

Answer(s): C

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QUESTION: 198

Which aspect of the audit function would be most impacted by a lack of coordination between an organization's internal and external auditors?

Responsiveness.
Timeliness.
Effectiveness.
Efficiency.

Answer(s): D

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QUESTION: 199

A chief audit executive used risk assessment to prepare the audit work schedule. Which of the following would be the least appropriate reason to modify the schedule?

Need for coordination of audit activities with the external auditors.
Request for postponement since the audit would be too complicated.
Change in the relative risk of auditable activities during the year.
Budget constraints or expansions.

Answer(s): B

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QUESTION: 200

Due to urgent requests from management, a busy internal audit activity finds that it can no longer meet all of its commitments contained in the annual audit plan. The best course of action for the chief audit executive to take would be to

Continue with the plan and seek opportunities to adjust priorities and reallocate resources.
Advise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.
Advise the board and senior management and request a reassessment of the plan.
Advise the board immediately and seek their support for additional resources to meet the needs of the plan.

Answer(s): C

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Free Financial CIA-I Real Questions (page: 40)

QUESTION: 196

QUESTION: 197

QUESTION: 198

QUESTION: 199

QUESTION: 200