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IIA Essentials of Internal Auditing Sample Questions (Q395-Q400):

NEW QUESTION # 395
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity's independence?

A. Definition of internal auditing
B. Description of internal audit activity's responsibilities
C. Statement of internal audit activity's authonty
D. Description of internal audit activity's reporting structure

Answer: D

NEW QUESTION # 396
Which of the following is a preventive control the organization could implement to mitigate fraudulent activity in the accounts payable department?

A. Requiring accounts payable employees to sign a code of conduct awareness confirmation.
B. Requesting the internal audit activity perform an independent evaluation of fraud risk in the department.
C. Delivering fraud awareness training to employees in the department.
D. Segregating duties between employees in the department.

Answer: D

NEW QUESTION # 397
A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation. When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?

A. The CAE describes the specifics of the allegation to underscore the importance of the situation and the need for expert investigation
B. The CAE refers to the Standards and explains that the internal audit activity must obtain competent assistance if needed.
C. The CAE refers to the Standards and explains that to protect her independence, she needs to remain isolated from the investigation.
D. The CAE refers to the Standards and explains that to protect her objectivity, she needs to remain isolated from the investigation.

Answer: B

Explanation:
According to the IIA Standards, the chief audit executive (CAE) must ensure that internal audit activities are performed with competence and due professional care. If the internal audit team lacks the necessary knowledge or skills to perform all or part of the work, the CAE must obtain competent advice and assistance.
Thus, the CAE's best response to defend the expenditure for an external fraud expert is to refer to the Standards, explaining that the internal audit activity must obtain competent assistance if needed to ensure the investigation is conducted effectively and professionally.References: IIA Standard 1210: Proficiency

NEW QUESTION # 398
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

A. Organizational status and objectivity.
B. Supervision of the chief audit executive (CAE) by senior management.
C. Organizational knowledge and skills.
D. CAE certification.

Answer: A

Explanation:
Section: Volume E

NEW QUESTION # 399
When reviewing management reports to the board of directors, the internal audit activity should:

A. Maintain supporting documentation for the management reports.
B. Tie all financial numbers in the reports to the general ledger.
C. Evaluate the process used to prepare the management reports.
D. Compare to prior-period reports for consistency.

Answer: C

NEW QUESTION # 400
......

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Top IIA-CIA-Part1 Mock Exams & Leading Provider in Qualification Exams & Effective IIA-CIA-Part1 Hot Spot Questions

IIA-CIA-Part1 Hot Spot Questions - IIA-CIA-Part1 Regualer Update

IIA Essentials of Internal Auditing Sample Questions (Q395-Q400):

2026 Updated IIA-CIA-Part1 Mock Exams | Essentials of Internal Auditing 100% Free Hot Spot Questions

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