CIA Part 1: Internal Audit Fundamentals Free Sample Questions

statistical sampling sets limits on resources used for the IAA, allows for a subjective interpretation of the lAA's sampling results,and supports The Institute of Internal Auditors' requirements for using questionnaires as a sampling tool.

statistical sampling allows for evaluation of all organizational data at once,increases the likelihood that risks are immediately identified,and does not require a level of tolerable misstatement or margin of error.

statistical sampling allows for the selection of a minimum sample size,provides a quantitative expression of the lAA's sampling results,and supports extrapolation.

Statistical sampling itself identifies root causes of issues,utilizes a qualitative method for analyzing results,and supports engagement objectives through the use of external benchmarking.

Probability that a balance or class of transactions and related assertions contain misstatements that could be material to the financial statements.

Uncertainty of an event occurring that could have an impact on the achievement of objectives.

Failure to a dhere to organizational policies,plans,and procedures,or the failure to comply with relevant laws and regulations.

Failure to a ccomplish established objectives and goals for operations or programs.

Influence regulatory interpretation of law to better match corporate practice.

Recommend changes to the scope of the regulatory examiners' review.

Perform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.

Supply evidence of adequate compliance testing through internal audit workpapers and reports.

Invoices are not being mailed to customers.

An employee is tampering with customer checks.

Employees are submitting fraudulent expense reports.

The customer service department is not forwarding complaints to the accounts receivable department.

Detailed objectives for internal audit engagements.

Confirmation that past audit recommendations have been implemented.

Evaluation of the adequacy of internal audit policies and procedures.

Performance appraisals of the internal audit staff.

Performance management is linked to competence and knowledge management.

Subordinates and superiors have shared responsibility for the performance management process.

staff members own the performance management process,thereby ensuring implementation and accountability.

Performance management is integrated into other organizational processes and human resource processes.

Report the results of audit engagements to line management as well as to senior management.

Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.

Interface primarily with senior management,minimizing interactions with line managers whA. re the subjects of internal audit work.

Focus on the maintenance of accounting controls (such as segregation of the duties of authorization,recording,and custody) and report results to the audit committee.

The board.

The chief audit executive.

Senior management.

The external auditors.

A review of audit staff education and training records.

Information about the audit staff size and composition of comparable organizations.

Results from discussions of audit needs with executive management and the audit committee.

The results of the audit staffs most recent performance reviews.

Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.

Assess the likelihood and/or impact of risk on the achievement of organizational objectives.

Assess the amount of risk an organization can accept while pursuing its objectives.

Assess alternative strategies to reduce or eliminate major risks.