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The IIA-CIA-Part1 exam covers the fundamental principles of internal auditing, including governance and risk management, internal control, and the audit process. It is designed to test the knowledge and skills necessary for entry-level internal auditors to effectively carry out their roles and responsibilities. The exam consists of 125 multiple-choice questions and must be completed within two and a half hours.

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IIA Essentials of Internal Auditing Sample Questions (Q146-Q151):

NEW QUESTION # 146
Which of the following would most likely be considered a red flag for fraud?

A. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.B. An employee in charge of payroll disbursements has rotated these duties with several colleagues.C. An employee with significant personal debt is in charge of handling large wire transfers for the organization.D. An organization lacks a whistleblower hotline for reporting suspicious activity.

Answer: C

Explanation:
Section: Volume E

NEW QUESTION # 147
Which of the following best demonstrates organizational independence of the internal audit activity?

A. The CAE's compensation is approved by the chief financial officer.B. The CAE's appointment Is determined by the CEOC. The CAE reports administratively to the chief operating officer.D. The chief audit executive (CAE) reports functionally to the CEO.

Answer: C

NEW QUESTION # 148
Which of the following is a limitation of using observation as a manual audit procedure?

A. Observation is performed specifically to test the validity of documented or recorded information.B. Observation may cause individuals to behave less critically or carefully if they are aware that other forms of manual audit procedures have already taken place.C. Observation is not as persuasive as inquiry due to a lack of direct evidence.D. Observation provides information at a certain time and makes it difficult to draw representative conclusions.

Answer: D

Explanation:
Section: Volume D

NEW QUESTION # 149
During a review of the procurement function, an internal auditor identified an existing control for adding new vendors into the vendor contract system. Which of the following would best help the auditor determine the adequacy of the control's design?

A. Interview with management of the procurement function.B. Independent confirmations sent to vendors.C. Analysis of the control's costs and benefits.D. Flowchart of the vendor addition process.

Answer: D

NEW QUESTION # 150
Which aspect of the audit function would be most impacted by a lack of coordination
between an organization's internal and external auditors?

A. Efficiency.B. Timeliness.C. Responsiveness.D. Effectiveness.

Answer: A

NEW QUESTION # 151
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