Internal Audit Function (IIA-CIA-Part3) Free Practice Test

Question 1

Which of the following backup methodologies would be most efficient in backing up a database in the production environment?

A. An incremental backup of the database on a daily basis.

B. An array of independent disks used to back up the database.

C. A differential backup that is performed on a weekly basis.

D. Disk mirroring of the data being stored on the database.

Correct Answer: A

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Question 2

Which of the following scenarios would cause a chief audit executive (CAE) to immediately discontinue using any statements that would indicate conformance with the Global Internal Audit Standards in an audit report?

A. The engagement supervisor considered requests from senior management regarding engagements to include in the internal audit plan

B. The internal audit function used a risk-based approach to create the internal audit plan

C. The activity under review restricted the internal audit function ' s ability to access records, impacting the audit results

D. The CAE only accepted engagements that the internal audit function collectively had the knowledge to perform

Correct Answer: C

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Question 3

Employees of an organization noticed that an exterior surface of the office building was deteriorating. Upon investigation, it was found that the deterioration was caused by harsh cleaning chemicals used to remove excessive bird droppings, and that the birds were drawn to the building to feed from a spider infestation.
Which of the following best represents a root cause-based recommendation for this situation?

A. Repair the surface of the building

B. Scare the birds away by installing scarecrows

C. Discontinue the use of the cleaning chemicals

D. Enhance cleaning of the building to displace spiders

Correct Answer: D

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Question 4

Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

A. Fair value method.

B. Consolidation method.

C. Cost method.

D. Equity method .

Correct Answer: D

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Question 5

Which of the following is an established systems development methodology?

A. Information Technology Infrastructure Library (ITIL).

B. Projects in Controlled Environments (PRINCE2).

C. Waterfall.

D. COBIT

Correct Answer: C

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Question 6

The board is considering outsourcing the internal audit function to an external service provider. Which of the following would always remain the responsibility of the organization?

A. Defining audit scopes sufficient to achieve the engagements ' objectives

B. Ongoing monitoring of the quality of internal audit documents

C. Maintaining a quality assurance and improvement program

D. Assessment of organizational risks for the annual audit plan

Correct Answer: D

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Question 7

Which of the following standards would be most useful in evaluating the performance of a customer-service group?

A. The average time per customer inquiry should be kept to a minimum.

B. Customer complaints should be processed promptly.

C. Employees should maintain a positive attitude when dealing with customers.

D. All customer inquiries should be answered within seven days of receipt.

Correct Answer: D

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Question 8

Which of the following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

A. Average-cost method

B. Last-in, first-out method (LIFO).

C. First-in. first-out method (FIFO).

D. Specific identification method.

Correct Answer: C

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Question 9

An internal audit team performed an assurance engagement of the organization ' s IT security. The audit team found significant flaws in the design and implementation of the internal control framework. IT department managers often disagreed with the audit team on the significance of the findings, claiming that the controls in place partly mitigated the risks. Which of the following should be included when communicating the engagement results to senior management?

A. Only the findings that were agreed upon between the audit team and the IT department

B. Only the audit team ' s findings and the reasons they require immediate action from senior management

C. All the correspondence exchanged between the audit team and IT department demonstrating the disagreement

D. The audit team ' s findings and the IT department's opinion

Correct Answer: D

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IIA Internal Audit Function (IIA-CIA-Part3) Free Practice Test