Question 1

Which of the following is a primary benefit of implementing a governance, risk management, and compliance framework within an organization?

Options :

A : Fewer internal audits.

B : More effective interviews.

C : Automated risk management strategy tools.

D : Reduced assurance costs.

Answer: D

Question 2

Which of the following would best assist the internal audit activity in assessing whether an organization's responses to risk are aligned with its risk appetite?

Options :

A : Analyzing the results of successful testing of controls and monitoring procedures implemented by management.

B : Determining that there are no gaps between the internal auditors' risk assessment and the risk assessment performed by the organization.

C : Obtaining evidence that employees throughout the organization are aware of the organization-s risk appetite.

D : Verifying that previously identified organizational risks were documented in board meeting minutes.

Answer: B

Question 3

Which of the following is an indicator of ineffective third-party risk management?

Options :

A : Sourcing of third parties does not follow public procurement law.

B : Violations of service conditions trigger either fines or termination.

C : Due diligence of third parties is conducted only after contract signing.

D : The right-to-audit clause is limited by personal data protection regulations.

Answer: C

Question 4

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.

Which of the following would be the best course of action for the CAE to take?

Options :

A : Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

B : Ask that a senior member of the organization-s IT department with the required systems expertise join the audit team to assist in completing the engagement

C : Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement

D : Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the

Answer: C

Question 5

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

Options :

A : Auditors must be given assignments based primarily upon their years of experience.

B : All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

C : Tasks must be assigned to the audit team member who is most qualified to perform them.

D : All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

Answer: B

Higher Test Marks with Free Online IIA-CIA-Part1 Exam Practice

Buying Options: