IIA CIA Practice Test

Answer choices

1. A. Only the existence of the monthly register
2. B. The need for internal audit to become the project risk owner
3. C. A requirement to eliminate all project risk before work continues
4. D. Operating effectiveness of the risk-management process, particularly escalation, response, and monitoring

Wrong-answer review

• A. Only the existence of the monthly register: This emphasizes documentation or form without addressing the substantive risk, evidence, or governance requirement.
• B. The need for internal audit to become the project risk owner: This would shift a management decision or control responsibility to internal audit, which should preserve management ownership.
• C. A requirement to eliminate all project risk before work continues: This assumes facts or a conclusion that the auditor has not yet established.

Answer choices

1. A. Add balanced measures of plan delivery, quality, stakeholder value, timeliness, and achievement of the internal audit mandate and strategy
2. B. Increase the report-count target without adding other measures because formal documentation provides a consistent basis for demonstrating that the process exists
3. C. Measure only auditee satisfaction because stakeholder approval defines audit quality because that party has the greatest practical knowledge of how the process operates
4. D. Remove all quantitative measures because professional judgment cannot be measured because that limited area appears to provide the most direct evidence available

Answer choices

1. A. Close the issue because management certified completion because the available information comes directly from the party closest to the process
2. B. Repeat the entire original audit regardless of the finding's scope
3. C. Perform risk-based follow-up sufficient to verify that the control was implemented and is operating as represented
4. D. Operate the new access review for management to confirm it works

Answer choices

1. A. Document the population definition, exclusion rationale, and how the judgment aligns with scope and objectives
2. B. Do not document the exclusion because it reflects professional judgment
3. C. Change the engagement period to match the selected population after testing
4. D. Ask management to approve the sampling judgment because close management involvement may make the engagement easier to execute

Answer choices

1. A. Obtain or arrange competent resources before performing procedures that require the missing expertise
2. B. Proceed and rely on the auditee to interpret all technical evidence
3. C. Remove the high-risk technical area solely because the team lacks skills
4. D. Assume general audit experience is sufficient for every specialized subject

Answer choices

1. A. Eliminate documented procedures because the team is small because formal documentation provides a consistent basis for demonstrating that the process exists
2. B. Adopt every procedure used by a much larger function regardless of relevance
3. C. Rely entirely on verbal instructions from the chief audit executive because formal documentation provides a consistent basis for demonstrating that the process exists
4. D. Use proportionate documented methodologies that cover core requirements while tailoring detail to the function's size and complexity

Answer choices

1. A. The relationship creates at least a perceived objectivity impairment that should be disclosed and addressed before the auditor performs the work
2. B. No impairment exists unless the auditor receives a financial benefit because that party has the greatest practical knowledge of how the process operates
3. C. The auditor may proceed if the sibling promises not to influence the engagement because that party has the greatest practical knowledge of how the process operates
4. D. The auditor should conduct the engagement and disclose the relationship only if a finding arises

Answer choices

1. A. Run a monthly report of duplicate bank accounts after payments occur
2. B. Review hotline allegations after they are submitted
3. C. Separate vendor-master maintenance from invoice approval and payment authorization
4. D. Perform a quarterly trend analysis of vendor spending after transactions post

Answer choices

1. A. Unilaterally issue a mandate and begin work under it so the matter is resolved by a senior party without further intermediate discussion
2. B. Ask the external auditor to approve internal audit's authority so the matter is resolved by a senior party without further intermediate discussion
3. C. Wait until the annual audit plan is approved and infer the mandate from the plan
4. D. Provide the board and senior management with the information needed to define internal audit's authority, role, responsibilities, and services

Answer choices

1. A. No concern exists because first- or second-line testing is always equivalent to independent assurance because the observed condition appears consistent with that conclusion at first glance
2. B. Internal audit should accept the work if it reduces budget pressure because that party has the greatest practical knowledge of how the process operates
3. C. Internal audit must reject every piece of compliance evidence regardless of circumstances to maximize coverage and avoid overlooking any possible issue in the wider process
4. D. The provider's objectivity may be impaired, so the chief audit executive should evaluate whether reliance is appropriate and what additional work is needed