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Exam Code: IIA-CIA-Part1
Exam Name: CIA Part 1 - Essentials of Internal Auditing
Certification Provider: IIA
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IIA IIA-CIA-Part1 Practice Test Questions, IIA IIA-CIA-Part1 Exam dumps

Introduction

1. Introduction

Hello, internal auditors and CIA candidates coming up herewith this training for you to get prepared. The first step of CIA designation Part One essentials of Internal Auditing for CIA Exam Preparation there are only a few resources in the market and unfortunately most of them are very long, expensive, boring and which full of unnecessary details. And I also recognize that the practice questions that you can find in the online educational platforms are recurring and very similar to each other. Although the content of IA silvers for Parton is quite limited, still most of the candidates are having difficulties a lot and refresh to step into preparation process and take exams. Then I decided to prepare video training for you. I made a huge effort to make it clear, concise, result oriented and easy to follow. In order to make it, I purchased all the resources I found in the market books, tutorials and online practice questions. From these resources I filtered the most important information, key points and common highlights to create more effective and efficient training for you. This training consists of flashcards containing all the topics in the syllables. The flashcards are not arranged in order according to the syllables. It’s totally mixed, dispersed, not to bore you, but at the end of the training you will have seen all the topics required for you to be able to Passaic Part One exam in one attempt. I strongly believe in that this training will be extremely useful for you. You don't even need to take notes, post a video or do something else. Just lean back and watch the tutorial. For any kind of questions or feedback, please don’t hesitate to drop me an email now. Good luck and let's get started. Bye.

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1. A

I'm going to get all the flesh cards loudly for you. The main reason to establish internal controls inane organization providing reasonable assurance on the achievement of objects active the types of services provided by the internal audit activity assurance and consulting when conducting a formal consulting engagement, the matters to internal auditors must consider for executing due professional care first, the complexity of the work required. Second, the needs and expectations of the client. Third. The potential value of the engagement compared tithe efforts the proper organizational role of internal auditing serving as an independent objective assurance and consulting activity that adds value to operations the parameters being used to measure risks. Likelihood and impact the primary purpose of COBIT providing guidance to govern information technology activities independence for internal auditors freedom from conditions that treat an internal auditor's ability to do unbiased work the purposes of working papers first. Contributing to development of the internal audit staff. Second, demonstrating compliance with auditing standards. Third, providing support for communication to third parties the natural risk level in a process that has not been controlled or mitigated in risk management, it is the inhabitant risk the control types controls may be prevented to deter undesirable events from occurring detective to detect and correct undesirable events which have occurred or directive to cause or encourage a desirable event to occur. Do main risk response strategies first, risk avoidance second, risk acceptance and sharing third, risk mitigation fourth, risk transfer the elements of strategic direction first, the business model second, overall objectives third, the risk appetite fourth, the limits of organizational conduct risk management the process to identify, assess, manage and control potential events or situations to provide reasonable assurance regarding the achievement of the organization’s objectives. The key inputs in the evaluation of judgments of the internal audit risk appetite it is the amount and types of risk an entity is willing to accept in pursuit of value the responsibility of the internal auditor with respect to fraud the internal auditor should have sufficient knowledge to identify the indicators of fraud but is not expected to be an expert. The primary objective of risk based assessing the adequacy of controls the core topics to be defined in the internal audit charter first, the internal audit activities position within the organization. Second, the scope of internal audit activities Turks management and the board of directors. Agreements regarding the roles and responsibilities of the internal audit activity the most appropriate tool which gives a graphical representation of sequence of activities and decisions it’s floor charts the most significant disadvantage of using checklist to evaluate internal controls they don’t capture all controls that may exist. Two most common red flags showing that an employee is more likely to commit fraud. First, the employee believes that he is being underpaid and deserves a higher salary. Second, the employee has personal financial problems and seems very unhappy accepting money as a gift from the supply of the oddity. It is the violation of IA code of Ethics the most serious consecutive efficiency of an engagement letter or project approval document in the audit process audit objectives may not be understood by management of the area being audited the control type of a password lock on a server it is preventive control the most common methods of fraud detection tips received from employees or citizens the primary role of the internal audit activity in regard to an organization's ethical climate periodically assess the ethical climate's effectiveness in achieving legal and ethical compliance the Chief Audit Executive's responsibility regarding control processes assisting senior management and the Audit Committee in the development of an annual assessment about internal control the primary concern of an internal auditor in comprehensive audit of an organization extent of achievements of the organization's mission the most effective control type to use for a bank handling large amount of cash preventive control the appropriate responsibilities of the Audit Committee in relation to the Chief Audit Executive first. Approving the Internal Audit Charter second. Approving decisions regarding the appointment and removal of the Chief Audit Executive third. Making appropriate inquiries of management and the Chief Audit Executive to determine whether there are inappropriate scope and resource limitations.

2. B

Now. Second part the typical management control activities reconciliation, inquiry and documentation according to standards the point that a review team must express an opinion when performing an external assessment of an internal audit activity conformance with the Standards and IA Code of ethics. The advantage of a horizontal flow charts compared to a vertical flow chart bringing intro, sharper focus to assignment of duties and independent checks on performance. The competency that an internal auditory process in order to fulfill the responsibilities of the internal audit activity. An understanding of management principles in order to evaluate the relations for good practices according to the International Professional Practices framework. The primary issues for internal audit activity to achieve independence. First, organizational status. Second, objectivity the division to reach the final results of the quality assurance review should be reported. The chief audit executive with copies to the board and senior management. The goal of the board of Directors in the governance process is issuance concerning the effectiveness on the organization's governance systems. The division which determines the internal audit activities involved in the risk assessment and management processes of an organization board of directors. The primary purpose of establishing a code of conduct within a professional organization promoting an ethical culture among professionals who serve others the four key steps of the gaming cycle plan, do, check and act the frequency and review team of external assessments. External assessments must be conducted at least once every five years by a qualified independent review of review team from outside the organization. Control is any action taken by management, the board and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. The purpose of control processes supporting the organization in the management of risks and the achievement of its established and communicated objectives. The most common It general controls. First, logical access controls over infrastructure applications and data. Second, system development lifecycle controls. Third, program change management controls physical security controls over the data center. Five, system and data backup and recovery controls. The board of Directors primary responsibility regarding internal control identifying stakeholders and the outcomes that are unacceptable. The main duties of the board of Directors first, selection and removal of officers. Second, decisions about capital structure. Third, adding, amending or repealing bylaws. Fourth, initiation of fundamental change for the organization includes mergers and acquisitions. Fifth, decisions to declare and distribute dividends setting off manageable compensation. Seven, coordinating audit activities. Eight. Evaluating and managing risk. The main responsibilities of risk orders. First, evaluating the adequacy of the design of risk management activities and the organization’s ability to carry them out as designed. Second, determining whether risk management activities are operating as designed. Third, establishing monitoring activities ensuring that information to be reported to senior management and the board is accurate, timely and available. The main business objectives according to the Kozo Ergon framework. First, operational excellence. Second. Financial performance church compliance obligations the Chief Audit Executive the Chief audit Executive is a person in a senior position responsible for effectively managing the internal audit activity in accordance with the Internal Audit Charter and the mandatory elements of the IPPF scheme is the type of cash before the accounting entry is recorded the primary purpose of operating a fraud hotline within an organization establishing channels of communication for people to report suspected impropriates the elements of authority that should be included in the Internal Audit Activities Charter regarding performance of engagement access to reports. Personal and physical properties the action to be taken by Chief Audit Executive when faced with an imposed scope limitation communicating the potential effects of the scope limitation to the Board the major reason for establishing an internal audit activity evaluating and improving the effectiveness of control processes the type of standards which constitute mandatory guidance for implementing the standards performance standards the minimal required frequency that the Chief Audit Executive to report the results of internal assessments in the form of ongoing monitoring to senior management and the Board at least annually the elements of control first. Establishing standards for the operation to be controlled second. Measuring performance against the standards chart examining and analyzing variations fourth. Taking corrective actions where appraising the standards based on experience the objective of It general contracts ensuring the appropriate development and implementation of applications as well as the integrity of program and data files and of computer operations the core principles for the professional practice of internal auditing first. Demonstrates integrity second. Demonstrate competence and do professional care third. Is objective and free from undue influence fourth. Aligns with the strategies. Objectives and risks of the organization fifth. Is appropriately positioned and adequately resourced six. Demonstrates quality and continuous improvement 7th.Communicates effectively eight. Provides risk based assurance is insightful, proactive and feature focused 10th.Promotes organizational improvement.

3. C

Now part Three the primary objective of an audit of an entity's business continued plan relationship of the plan to risk exposures organizational division that determines the internal audit activities role in the risk assessment and management process of an organization board of direct the best type of control to mitigate segregation of duty risks for an organization with limited resources compensating controls the primary purpose of a Fishbone diagram to identify the possible causes of adverse conditions the most useful tool in developing an annual audit plan risk assessment the primary advantage of using a computer assisted audit technique to provide a high level of assurance Catalan examine the whole of population of transactions rather than a sample in order to identify exceptions and trends according to IAA guidance the most likely of stakeholder to undertaking a quality assurance and improvement program by the internal audit activity the inability to adequate the fund to program the piece of information which the chief audit executive should provide to senior management and the board in addition to information about internal audit activity plans and significant integral changes resource requirements and resource limitations the primary reason that a chief audit executive reveals external audit management layers and management response selecting areas to emphasize in future internal audit engagements the components of an organization's internal environment first. Authority and responsibility to resolve issues. Second, framework to plan, execute and monitor activities. Third. Knowledge and skills needed to perform activities the purpose of reviewing prior audit reports and supporting book papers before an engagement starts first. To understand better the activity and the processes that will be audited second. To ensure that matters of greater school narrability will be addressed the most important matter ensuring that an internal audit activity has the ability to render impartial and unbiased assessments organizational status and objectivity the most appropriate risk management activity for an internal auditor to undertake reviewing the management of key risks be responsible for periodically assessing the internal audit activity the chief audit executive the advantage of email surveys compared to facet of ace interviews. They are less expensive the first stage in the development of a crisis management program conducting a risk analysis the purpose of including management in the development of the audit plan verifying that the highest risks are included in the risk based audit plan the appropriate outcomes of a quality assurance and improvement program in an internal audit activity first. Modification of resources second. Corrections to procedures third. Changes in processes implementation of new technology the principle violated when relevant information is deliberately removed from an audit report integrity according to IA guidance the groups to which should be reported the results of a formal quality assessment the audit committee and senior management the audit engagement phase to be impacted strongly by inadequate risk assessments determining the scope the issues to consider when an internal auditor applies to professional caret perform an assurance engagement first. Probability of of significant aggress irregularities or noncompliance second. Extent of work needed to achieve engagement objectives cost of the engagement versus potential benefits the matter is the internal auditor must consider for executing due professional care first. Cost of assurance in relation to potential benefits. Second. Adequacy and effectiveness of governance. Risk management and control processes third. Probability of significant eggs fraud or noncompliance the objectives of internal contract first. Compliance second. Accuracy third. Efficiency according to IA guidance the approval flow of the internal audit charter senior management should approve the charter before it is submitted to the board the most appropriate strategy best protecting the organization from the risk of copyright infringement and licensing violations resulting from this practice installing a software inventory management application the audit risk an incorrect conclusion based on evidence uncovered during an audit the main disadvantage of organizations using a highly structured command and control management approach negative consequences that result from lower level staffs unwillingness to confront errors by superiors.

4. D

The main purposes of the standards first, establishing the basis for the measurements of internal audit performance. Second, to the mandatory elements of the IPPF. Third, fostering improved organizational processes and operations the main purpose of conducting staff performance appraisals at the end of any major internal audit engagement assessing future trainings needs and current staff abilities the core elements of the control environment first, integrity and ethical values. Second, commitment to competence. Third, board of directors or audit committee management philosophy and operating style organizational structure assignments of authority and responsibility. Sevenths. Human resource policies and practices governance the combination of processes and structures implemented by the board to inform. Direct. Manage and monitor the activities of the organization towards the achievement of its objectives the amount of risk or danger associated with an action or event remaining after natural or inherent risks have been reduced by risk contrast it's residual risk the purpose of asking open-ended questions when conducting an interview obtaining information based on the person’s own perspective the action to take when the auditor discovers unexpected variations of actual results from budget gathering additional information to determine the cause of the variations according to IA guidance the areas in which the internal auditor should be proficient internal audit standards. Procedures and techniques the result of a chief audit executive to seek formal approval from the board regarding an internal audit charter the status of the internal audit activity can be clearly established the features of reportable audit findings first. Documented by facts second. Supported by relevant evidence. Three, convincing enough to compel corrective actions the underlying premise of the cause of entry press Risk Management Framework every entity exists to provide value for its stakeholders in developing an appropriate work program for an audit engagement. The most important factor for an audit promiser to consider potential impacts of risks the most common type of payroll fraud fixtures employees the tool which provides the most useful depiction of a process flow that spans multiple departments in an organization a horizontal flowchart with each department identified across the top and the process flow below the effective controls to achieve an organization's quality objectives to reduce the amount for a work needed in the production cycle. First, machinery is routinely maintained to avoid production malfunctions. Second, quality inspectors are assigned to identify any defects in the finished products chart. Employees are rewarded for suggestions that lead to quality improvements the appropriate types of coordination between the internal audit activity and regulatory auditors first, regulatory auditors share their perspective on risk management, control and governance with internal auditors. Second, internal auditors review copies of regulatory reports in planning related internal engagements. Third, regulatory and internal auditors exchange information about plant activities the appropriate rules for internal auditors after a disaster occurs first, monitoring the effectiveness of the recovery and control of operations. Second, recommending future improvements to the entity's business continue to plan church assisting in the identification of lessons learned from the disaster and the recovery operations the parts of the Nevada paradigm in Erma according to the cause of entry press risk management framework. First, aligning risk appetites and strategy enhancing risk response decisions. Three, reducing operational surprises and losses the most appropriate action to take by Chief Audit executive in the case that the audit committee is concerned that the small size of the internal audit activity makes it impractical to achieve full conformance with the standards, the chief audit executive should explain that conformance with the standards is essential and not dependent upon the size of the IA. When conducting a preliminary survey the audit activities to be completed first, identifying client objectives, goals and standards the type of control which is designed to directly mitigate internal and external risks at the organization wide level. Furthering the achievement of many organizational objectives and its level control. The next step after determining the cause of a problem generating alternative solutions the most valuable approach doing internal audit activities enterprise White Risk assessment considering activities all levels of the organization. The primary issue to consider when internal auditors who are concerned with potential risks due to the mishandling of reports or transactions the type and nature of the activities to be examined the primary benefits of using information technology in solving audit problems. First, reducing audit risk. Second, improving the timelines of the audit engagement. Third, increasing audit opportunities the risk assessment tool which best facilitates the matching of controls to risks control matrix the most effective way to ensure that the organizational position of the internal audit activity is free from the effects of Irresponsible policy change by management having the internal audit charter approved by the board. The action to take after the chief audit executive receives approval from the board to offer consulting services, the internal audit charter should be amended. The organizational position with responsibility for assessing the individual objectives of internal auditors the Chief audit Executive.

5. E

The purpose of internal auditors to avoid conflicts of interests maintaining individual objectivity the coverage of the external assessment months first, conformance with the Code of Ethics and standards evaluated by review of the internal audit activities, charter plans, policies, procedures, practices and applicable legislative and regulatory requirements. Second, the expectations of the internal audit activity expressed by the board, senior management and operational managers church the efficiency and effectiveness of the internal audit activity the main processes and tools used in ongoing internal assessments. First, measures of project budgets. Second, timekeeping systems third, audit plan compilation pushes where manual controls may be more suitable manual controls may be more suitable where judgment and discretion are required, such as first, for large, unusual or recurring transactions. Second. For circumstances where misstatements are difficult to define. Anticipate or predict in changing circumstances that require a control response outside the scope of an existing automated control in monitoring the effectiveness of automated controls the common inhabitants limitations in internal control first. Faulty human judgment in decision making two simple errors or mistakes tort collision management overwrite feedforward controls feedforward controls provide for the active anticipation of problems so that they can be avoided or resolved in a timely manner. Operating operating controls are those applicable to production and support activities. Because they may lack established criteria of standards, they should be based on management principles and methods. The corporate culture a reflection of the organization’s mission and vision and consists of the attitudes, behaviors and understanding about risk. The elements of oversight first, the board’s responsibilities to stakeholders second, the risk management activities of senior management and the board three internal and external assurances activities the main purpose purposes of governance practices first, complying with society's legal and regulatory roles. Second, satisfying the general accepted business norms, ethical principles and social expectations of society. Third. Providing overall benefits to society and enhances the interest of specific stakeholders in both the long and short term reporting fully and truthfully to its stakeholders. Including the public. To ensure accountability for its decisions. Actions and performances the benefits of implementing ISO 140 first. Decreasing the cost of waste management second. Providing savings in consumption of energy and materials three. Decreasing distribution costs fourth. Improving corporate image among regulators. Customers and the public the benefits of implementing corporate social responsibilities program first. Positive public perception on a local. National and international level. Second. Retention of workers charity as a form of advertising deductibility of charitable donations the organizational division. Which provides oversight of an entity's entry price risk Management the board of directors the action to take in the case that an internal auditor suspects fraud recommending an investigation the most important point to pay attention to when interweaving the voiding choices of the suspect the characteristics of business objectives according to the Koso diagram framework first. Specific second measurable third observable fourth. Obtainable the most appropriate way for the internal audit activity to respond if an engagement client disputes that specific action or process is within the scope of the internal audit activity referring the client tithe IAA's charter and approved yearly audit plan. Which includes the areas designated for audit in the current time period. The most useful function of inventory choice over analysis identifying excess inventory. Including obsolete inventory the primary purpose of risk management program reduce risk to a targetable level the reason which statistical sampling is the best method to use when performing an internal audit statistical sampling allows for the selection of minimum sample size. Provides a quantitative expression of the Is sampling results and supports extrapolation the reason which risk assessments are valuable to the internal audit activities planning process risk assessments identify the audit universe or auditful activities that need to be reviewed. The risk within an internal auditor engagement uncertainty of any events occur in that could have an impact on the achievement of objectives. An appropriate role for the boarding governance ensuring that financial statements are understandable, transparent and reliable. The most useful sampling method to test whether payments to outside contractors have been charged tithe proper account attribute sampling the method of management to obtain assurance that employees are complying with the organization's security policy. Regularly conducting independent reliefs of employees security practices. The data collection strategy that systematically tests the effects of various factors on an outcome modeling the most important point to be assessed in order to provide the most useful information for an organization's risk management decisions. Risk levels of current and future events their effects on the achievement of the organization’s objectives and their underlying causes during an audit of financial contracts. The course of action to take when an auditor learns that a relative has a substantial loan with the organization, notifying management and the chief audit executive and having the chief audit executive determine whether the audit should continue with the auditing agent. The reason which preventive controls generally preferred to detective controls. Preventive controls promote doing the right thing in the first place and lessen the need for corrective action. The topic that the chief audit executive required to discuss with the board with regard to external assessments of an internal audit activity. External review conflict of interest and the need for an external assessment more frequently then once every five years.

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