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CIA-I - Certified Internal Auditor (CIA) - Dump Information

Vendor : Financial
Exam Code : CIA-I
Exam Name : Certified Internal Auditor (CIA)
Questions and Answers : 1191 Q & A
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QUESTION: 225

To identify those components of a telecommunications system that present the greatest

risk, an internal auditor should first


  1. Review the open systems interconnect network model.

  2. Identify the network operating costs.

  3. Determine the business purpose of the network.

  4. Map the network software and hardware products into their respective layers.


Answer: C


QUESTION: 226

An auditor plans to analyze customer satisfaction, including (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?


  1. Although useful, such an analysis does not address any risk factors.

  2. The survey would not consider customers who did not make purchases in the last

    three months.

  3. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer

    survey is comprehensive.

  4. Analysis of three months' activity would not evaluate customer satisfaction.


Answer: B


QUESTION: 227

When internal auditors provide consulting services, the scope of the engagement is

primarily determined by


  1. Internal auditing standards.

  2. The audit engagement team.

  3. The engagement client.

  4. The internal audit activity's charter.


Answer: C


QUESTION: 228

An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including

the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security audit engagement?


  1. Investigation of the physical security over access to the components of the LAN.

  2. The ability of the LAN application to identify data items at the field or record level

    and implement user access security at that level.

  3. Interviews with users to determine their assessment of the level of security in the

    system and the vulnerability of the system to compromise.

  4. The level of security of other LANs in the company which also utilize sensitive data.


Answer: D


QUESTION: 229

At the beginning of fieldwork in an audit of investments, an internal auditor noted that

the interest rate had declined significantly since the engagement work program was created. The auditor should


  1. Proceed with the existing program since this was the original scope of work that was approved.

  2. Modify the audit program and proceed with the engagement.

  3. Consult with management to verify the interest rate change and proceed with the engagement.

  4. Determine the effect of the interest rate change and whether the program should be modified.


Answer: D


QUESTION: 230

Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?


  1. The total number of cars approved.

  2. The ratio of cars rejected to total cars inspected.

  3. The number of cars inspected per inspection agent.

  4. The average amount of fees collected per cashier.


Answer: C


QUESTION: 231

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an

inverse relationship to rainy days. What conditions would an auditor look for as an indicator of employee theft of food from a specific store?


  1. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.

  2. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.

  3. Both total sales and cost of ingredients used are greater than expected.

  4. Both total sales and cost of ingredients used are less than expected.


Answer: B


QUESTION: 232

Which of the following procedures would provide the best evidence of the effectiveness

of a credit-granting function?


  1. Observe the process.

  2. Review the trend in receivables write-offs.

  3. Ask the credit manager about the effectiveness of the function.

  4. Check for evidence of credit approval on a sample of customer orders.


Answer: B


QUESTION: 233

An organization has developed a large database that tracks employees, employee benefits, payroll deductions, job classifications, and other similar information. In order to test whether data currently within the automated system are correct, an auditor should


  1. Use test data and determine whether all the data entered are captured correctly in the updated database.

  2. Select a sample of data to be entered for a few days and trace the data to the updated database to determine the correctness of the updates.

  3. Use generalized audit software to provide a printout of all employees with invalid job descriptions. Investigate the causes of the problems.

  4. Use generalized audit software to select a sample of employees from the database.

Verify the data fields.


Answer: D


QUESTION: 234

Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area. Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?


  1. Engage the former head of the institution's derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.

  2. Request that senior management allow a delay of the fraud investigation until the internal audit activity's on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.

  3. Request that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner

    with derivatives experience to perform all aspects of the investigation and subsequent reporting.

  4. Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit executive

approving the scope of the investigation and evaluating the adequacy of the work performed.


Answer: D


QUESTION: 235

According to the International Professional Practices Framework, internal auditors

should possess which of the following competencies?

  1. Proficiency in applying internal auditing standards, procedures, and techniques.

  2. Proficiency in accounting principles and techniques.

  3. An understanding of management principles.

  4. An understanding of the fundamentals of economics, commercial law, taxation,

finance, and quantitative methods.


  1. I only.

  2. II only.

  3. I and III only.

  4. I, III, and IV only.


Answer: D


QUESTION: 236

Which of the following are acceptable resources for a chief audit executive to use when developing a staffing plan?

  1. Co-sourcing arrangements.

  2. Employees from other areas of the organization.

  3. The organization's external auditors.

  4. The organization's audit committee members.


  1. I only.

  2. I and II only.

  3. II and IV only.

  4. I, II, and IV only.


Answer: B


QUESTION: 237

Which of the following would be a violation of the IIA Code of Ethics?


  1. Reporting information that could be damaging to the organization, at the request of a court of law.

  2. Including an issue in the final audit report after management has resolved the issue.

  3. Participating in an audit engagement for which the auditor does not have the necessary experience or training.

  4. Accepting a gift that is a commercial advertisement available to the public.


Answer: C


QUESTION: 238

Which of the following is not an appropriate objective for a quality assurance and improvement program?


  1. Continually monitor the internal audit activity's effectiveness.

  2. Assure conformance with the Standards and Code of Ethics.

  3. Perform an internal assessment at least once every five years.

  4. Communicate the results of quality assessments to the board.


Answer: C


QUESTION: 239

According to the International Professional Practices Framework, which of the following is true with respect to the different roles in the risk management process?

  1. Boards have an oversight role.

  2. Acceptance of residual risks can reside with the chief audit executive.

  3. The board can delegate the operation of the risk management framework to the management team.

  4. The internal audit activity's role can range from having no responsibilities to managing and coordinating the process.

  1. I only.

  2. II and IV only.

  3. I, III, and IV only.

  4. I, II, III, and IV.


Answer: C


QUESTION: 240

Which of the following types of risk factors are used within risk models to establish the priority of internal audit engagements?

  1. Management competence.

  2. Quality of internal controls.

  3. Audit staff experience.

  4. Regulatory requirements.


  1. II only.

  2. I, II, and III only.

  3. I, II, and IV only.

  4. I, III, and IV only.


Answer: C


QUESTION: 241

Which of the following is not an appropriate type of coordination between the internal

audit activity and regulatory auditors?


  1. Regulatory auditors share their perspective on risk management, control, and governance with the internal auditors.

  2. Internal auditors perform fieldwork at the direction of the regulatory auditors.

  3. Internal auditors review copies of regulatory reports in planning related internal

    engagements.

  4. Regulatory and internal auditors exchange information about planned activities.


Answer: B


QUESTION: 242

An organization's accounts payable function improved its internal controls significantly after it received an unsatisfactory audit report. When planning a follow-up audit of the function, what level of detection risk should be expected if the audit and sampling procedures used are unchanged from the prior audit?


  1. Detection risk is lower because control risk is lower.

  2. Detection risk is lower because control risk is higher.

  3. Detection risk is higher because control risk is lower.


Answer: D


QUESTION: 243

Which of the following is an appropriate role for the board in governance?


  1. Preparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest.

  2. Ensuring that financial statements are understandable, transparent, and reliable.

  3. Assisting the internal audit activity in performing annual reviews of governance.

  4. Working with the organization's attorneys to develop a strategy regarding current

litigation, pending litigation, or regulatory proceedings governance.


Answer: B


QUESTION: 244

According to the International Professional Practices Framework, which of the

following are allowable activities for an internal auditor?

  1. Advocating the establishment of a risk management function.

  2. Identifying and evaluating significant risk exposures during audit engagements.

  3. Developing a risk response for the organization if there is no chief risk officer.

  4. Benchmarking risk management activities with other organizations.

  5. Documenting risk mitigation strategies and techniques.


  1. IV and V only.

  2. I, II, and III only.

  3. I, II, IV, and V only.

  4. II, III, IV, and V only.


Answer: C


QUESTION: 245

According to the International Professional Practices Framework,

following should be stated in the internal audit charter?

I. Authorization for access to records.

which of

the

  1. The internal audit activity's position within the organization.

  2. The relationship between the internal audit activity and the board.

IV. The scope of internal audit activities.


  1. I and IV only.

  2. II and III only.

  3. I, II, and IV only.


Answer: C


QUESTION: 246

Which of the following is not an appropriate role for internal auditors after a disaster

occurs?


  1. Monitor the effectiveness of the recovery and control of operations.

  2. Correct deficiencies of the entity's business continuity plan.

  3. Recommend future improvements to the entity's business continuity plan.

  4. Assist in the identification of lessons learned from the disaster and the recovery

operations.


Answer: B


QUESTION: 247

Which component is the foundation of the COSO internal control framework?


  1. Risk assessment.

  2. Control environment.

  3. Control activities.

  4. Monitoring.


Answer: B


QUESTION: 248

Which of the following best describes the underlying premise of the COSO enterprise risk management framework?


  1. Management should set objectives before assessing risk.

  2. Every entity exists to provide value for its stakeholders.

  3. Policies are established to ensure that risk responses are performed effectively.

  4. Enterprise risk management can minimize the impact and likelihood of unanticipated events.


Answer: B


QUESTION: 249

Which of the following is an example of sharing risk?


  1. An organization redesigned a business process to change the risk pattern.

  2. An organization outsourced a portion of its services to a third-party service provider.

  3. An organization sold an unprofitable business unit to its competitor.

  4. In order to spread total risk, an organization used multiple vendors for critical materials.


Answer: B


QUESTION: 250

A records management system is an example of what type of control?


  1. Preventive.

  2. Detective.

  3. Corrective.

  4. Directive.


Answer: A


QUESTION: 251

Which of the following procedures is not a step that an auditor would perform when

planning an audit of an organization?


  1. Obtaining detailed knowledge about the organization.

  2. Obtaining a management representation letter.

  3. Assessing the audit risk of the organization.

  4. Having discussions with the organization's management team.


Answer: B


QUESTION: 252

Which of the following risk assessment tools would best facilitate the matching of controls to risks?


  1. Control matrix.

  2. Internal control questionnaire.

  3. Control flowchart.

  4. Program evaluation and review technique (PERT) analysis.


Answer: A


QUESTION: 253

Which of the following factors should be considered when determining the staff

requirements for an audit engagement?

  1. The internal audit activity's time constraints.

  2. The nature and complexity of the area to be audited.

  3. The period of time since the area was last audited.

  4. The auditors' preference to audit the area.

  5. The results of a preliminary risk assessment of the activity under review.


  1. I and IV only.

  2. I, II, and V only.

  3. II, III, and V only.

  4. I, II, III, IV, and V.


Answer: B


Financial CIA-I Exam (Certified Internal Auditor (CIA)) Detailed Information

Certified Internal Auditor (CIA): Strengthen Your Core
The CIA journey begins with a focus on The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards) and aspects of mandatory guidance under the IPPF. The journey continues with a focus on managing an internal audit project and culminates with concepts related to internal control, risk, governance, and technology. The CIA is a 3-part process for establishing your foundational core and starting point for career growth to:
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Internal Audit Practitioner: A New First Stop on Your Road to Success
The IIA's Internal Audit Practitioner designation.The Internal Audit Practitioner designation is a great way to quickly demonstrate your internal audit aptitude. You can earn this new designation through social badging by completing the Internal Audit Practitioner application and taking and passing the Certified Internal Auditor (CIA) Part One exam.
Candidates who have successfully completed the CIA Part One exam within the past 24 months are also eligible to apply.
For more information, please visit the Internal Audit Practitioner web page.
Six Steps to Certification
If you need help getting started, refer to the six steps to certification an internal auditor should review when making the decision to become certified in the profession.
Quick Links
Internal Audit Practitioner
CIA Eligibility Requirements
CIA Exam Syllabus
Sample Exam Questions
CPE Requirements for CIAs
CIA Exam Preparation Resources
CBT Exam Tutorial
Internal Audit Practitioner: A New First Stop on Your Road to Success
​The IIA's Internal Audit Practitioner designation.To support new and rotational auditors as they endeavor to take the first step on their personal journey into internal auditing, The IIA is pleased to announce the Internal Audit Practitioner designation.
The Internal Audit Practitioner designation is a great way to quickly demonstrate your internal audit aptitude. You can earn this new designation through social badging by completing the Internal Audit Practitioner application and taking and passing the Certified Internal Auditor® (CIA®) Part One exam. You can apply through CCMS to obtain this special designation.
Candidates who have previously passed CIA Part One who wish to obtain the Internal Audit Practitioner designation may apply as long as they passed the exam no more than 24 months prior to applying for the designation.
Ideal for New or Rotational Internal Auditors
If you are beginning your auditing career journey, obtaining this designation allows you to make a statement about your knowledge and aptitude as you progress through CIA Part 2 and 3. If you are navigating through a rotational role, the Internal Audit Practitioner designation provides you with the foundational knowledge you will need to make the most of your experience.
A Great Way to Train your Staff on the Foundation of Internal Audit
If you manage an audit team, the Internal Audit Practitioner designation is a great way to establish a common foundation of skills and knowledge related to internal audit best practices. Set your team up for internal audit success by taking steps to insure they are well versed in internal audit basics by encouraging your associates to take and pass Part One of the CIA exam and earn the Internal Audit Practitioner designation.
Pricing Information
This chart states the application and registration fees for the Internal Audit Practitioner program:
​First-time Applicant Members​ ​Nonmember
​Internal Audit Practitioner Application fee ​US$100 US$200​
​CIA Part One Exam registration fee US$250​ ​US$350
Applicants who have already completed and passed the CIA Part One exam 24 months prior to applying for the Internal Audit Practitioner designation must complete the Internal Audit Practitioner application at a reduced fee:
​Previously passed the CIA Part One exam within 24 months ​Members Nonmembers​
​Internal Audit Practitioner Application fee US$50​ US$100​
Register through CCMS today! To learn more about the program and eligibility requirements, please visit the Internal Audit Practitioner FAQ.
Eligibility Requirements
Please refer to the Internal Audit Practitioner FAQ for full details.
Requirements
Internal Audit Practitioner candidates must meet the eligibility requirements for character, work experience, and identification. Before a candidate application can be approved, ALL documentation (character reference and identification) must be received and approved by The IIA’s Certification staff.
Work Experience
Internal Audit Practitioner candidates must have six months internal auditor or equivalent experience (i.e., experience in audit or assessment disciplines, including internal auditing, external auditing, quality assurance, compliance, and internal control). The experience requirement must be fulfilled by the point of completion. There is no defined educational requirement.
Experience Verification Form
Once you have completed the form, please access the Certification Document Upload Portal and upload your form(s) there. (Submit the document type as Work Experience.)
Character Reference
Candidates must exhibit high moral and professional character and must submit a Character Reference Form signed by a CIA, CGAP, CCSA, CFSA, CRMA, or the candidate's supervisor.
Character Reference Form
Once you have completed the form, please access the Certification Document Upload Portal and upload your form(s) there. (Submit the document type as Character Reference.)
Proof of Identification
Candidates must provide proof of identification in the form of a copy of the candidate’s official passport or national identity card. These must indicate current status; expired documents will not be accepted. All documents must be scanned and uploaded through the Document Upload Portal in a manner that ensures the photo is clearly legible.
Internal Audit Practitioner FAQ
FAQ Expand All
What is the Internal Audit Practitioner program?
The Internal Audit Practitioner program is offered by The IIA and provides separate recognition and status for candidates who successfully complete and pass the CIA Part One exam.
How will the Internal Audit Practitioner program benefit candidates?
The Internal Audit Practitioner program is the initial key to professional success, opening doors for career opportunities, and earning candidates increased credibility and respect within their profession and organization.
For most, it is an important stepping stone towards completion of the full CIA or of those specialty certifications that require completion of the CIA Part One exam as a co-requisite (currently CRMA). It is also a desirable minimum achievement for those who are likely to be in internal auditing for two years or less.
Who is eligible to apply?
Please use the PDF to determine if you are eligible to apply.
What are the eligibility requirements?
The eligibility requirements for Internal Audit Practitioner are as follows:
Valid photo ID
Completion of the Internal Audit Practitioner program application
Character reference
Six months internal audit or equivalent experience (i.e., experience in audit or assessment disciplines, including internal auditing, external auditing, quality assurance, compliance, and internal control)
The experience requirement must be fulfilled by the point of completion. There is no defined educational requirement.
How much does the Internal Audit Practitioner recognition program cost?
The application and registration fees for the Internal Audit Practitioner program are as follows:
​First-time Applicant ​Members ​Non-member ​ ​
​Internal Audit Practitioner Application fee USD​ $100 ​USD $200 ​
​CIA Part One Exam
registration fee ​USD $250 ​USD $350 ​
Applicants who have already completed and passed the CIA Part One exam 24 months prior to applying for the Internal Audit Practitioner designation must complete the Internal Audit Practitioner application at a reduced fee:
Previously passed the CIA
P1 exam within 24 months​ Members​ Non-member​
Internal Audit Practitioner
Application fee​ USD $50​ USD $100​
Do I have to be a member of The IIA to apply?
While Internal Audit Practitioner candidates are not required to join The IIA, we strongly encourage you to take advantage of the member benefits including exam fee discounts, free CPE reporting, networking opportunities, and more.
If you live within North America click HERE
If you live outside of North America click HERE
How do I apply to the Internal Audit Practitioner program?
Complete the Internal Audit Practitioner application (available late June) through The IIA’s Certification Candidate Management System (CCMS).
Once you have submitted your application, submit your required documentation through The IIA’s document upload portal. Once your documents have been approved, you will automatically receive notification of your status. To access The IIA’s document upload portal click HERE.
How do I register for the CIA Part One exam?
Once your application for the Internal Audit Practitioner is approved, log into CCMS and complete the CIA Part One exam registration form. The exam is available through computer-based testing, allowing you to test year-round at more than 500 locations worldwide at any IIA-authorized Pearson VUE testing center. To locate the testing centers nearest you, visit the Pearson VUE website. You must apply and register in The IIA's Certification Candidate Management System (CCMS) prior to scheduling an exam.
What is the syllabus for the CIA Part One exam?
The topics tested include aspects of mandatory guidance from the IPPF; internal control and risk concepts; as well as tools and techniques for conducting internal audit engagements.
Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Mandatory Guidance (35-45%)
Internal Control/Risk (25-35%) – Awareness Level
Conducting Internal Audit Engagement – Audit Tools and Techniques (25-35%)
To review the full syllabus for the CIA Part One exam please click HERE. To review sample exam questions for the CIA Part One exam please click HERE.
How long is the CIA Part One exam?
The CIA Part One exam consists of 125 questions. Candidates will have 2 hours and 30 minutes to complete the exam.
What do I have to do to retain my recognition?
Internal Audit Practitioners will be awarded 2 years of CPE. At the end of the two years, you can report CPE once to keep your designation active for 12 additional months. At the end of the 3rd full year of holding the Internal Audit Practitioner, the designation will automatically expire.
For example if you earn the Internal Audit Practitioner on 1 June 2015, your first CPE report is due on or before 31 December 2017. After that, your designation will expire at the end of 2018.
What if I earn a certified status in the CIA or CRMA programs?
If you complete the CIA program (pass all three parts of the CIA exam) or obtain the CRMA, your Internal Audit Practitioner designation will automatically expire.
Why does my designation expire after 3 full years?
​The Internal Audit Practitioner is not designed to be held indefinitely. This program is designed to accommodate those that will only be in the professional for a short amount of time, and those that do not yet have enough experience to enter the full CIA program. As such, the designation will expire after 3 full calendar years.
Will candidates receive certification?
​The Internal Audit Practitioner program is not a certification program. The program is intended to recognize candidates who successfully complete the CIA Part One exam and are approved for the program.
Will I receive a paper certificate?
​No, individuals that earn the Internal Audit Practitioner designation will not receive a paper certificate. Instead, you will receive a digital badge that represents your achievement. Candidates will be able to display their recognition through social badging. Social badging allows holders of IIA qualifications to digitally display their credentials on social and professional networking sites at no cost to the candidate. For more information on Social Badging, please click HERE.
Certified Internal Auditor® (CIA®) Exam Syllabus
The Certified Internal Auditor (CIA) exam tests a candidate's knowledge of current internal auditing practices and understanding of internal audit issues, risks and remedies.
Exam Non-disclosure
The CIA exam is a non-disclosed examination, which means that current exam questions and answers will not be published or divulged.
NOTE: Exam topics and/or format are subject to change as approved by The IIA's Professional Certification Board (PCB).
Part 1 – Internal Audit Basics
125 questions | 2.5 Hours (150 minutes)
The CIA exam Part 1 topics tested include aspects of mandatory guidance from the IPPF; internal control and risk concepts; as well as tools and techniques for conducting internal audit engagements. Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Part 2 – Internal Audit Practice
100 questions | 2.0 Hours (120 minutes)
The CIA exam Part 2 topics tested include managing the internal audit function via the strategic and operational role of internal audit and establishing a risk-based plan; the steps to manage individual engagements (planning, supervision, communicating results, and monitoring outcomes); as well as fraud risks and controls. Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Part 3 – Internal Audit Knowledge Elements
100 questions | 2.0 Hours (120 minutes)
The CIA exam Part 3 topics tested include governance and business ethics; risk management; organizational structure, including business processes and risks; communication; management and leadership principles; information technology and business continuity; financial management; and the global business environment. Note: All items in this section of the syllabus will be tested at the Awareness knowledge level unless otherwise indicated below.
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