Exam (elaborations)
CIA Part 1 Multiple Choice Exam Questions And Answers 2024
CIA Part 1 Multiple Choice Exam Questions And Answers 2024
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cia part 1 multiple choice exam questions
assessing individual objectivity of internal audit
an internal auditor working for a chemical manufac
an internal auditing team has made observations an
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CIA Part 1 Multiple Choice Exam Questions
And Answers 2024
Assessing .individual .objectivity .of .internal .auditors .is .the .responsibility .of
A. .The .chief .executive .officer.
B. .The .board.
C. .The .audit .committee.
D. .The .chief .audit .executive. .- .correct .answer.D
An .internal .auditor .working .for .a .chemical .manufacturer .believed .that .toxic .waste .was
.being .dumped .in .violation .of .the .law. .Out .of .loyalty .to .the .organization, .no .information
.regarding .the .dumping .was .collected. .The .internal .auditor
A. .Did .not .violate .the .Code .of .Ethics. .Loyalty .to .the .employer .in .all .matters .in .required.
B. .Did .not .violate .the .Code .of .Ethics. .Conclusive .information .about .wrongdoing .was .not
.gathered.
C. .Violated .the .Code .of .Ethics .by .knowingly .becoming .a .party .to .an .illegal .act.
D. .Violated .the .Code .of .Ethics .by .failing .to .protect .thee .well-being .of .the .general .public. .-
.correct .answer.C. .A .person .with .a .duty .to .act .who .doess .not .act .violated .an .ethical, .if .not
.a .legal, .obligation.
An .internal .auditing .team .has .made .observations .and .recommendations .that .should
.significantly .improve .a .division's .operating .efficiency. .Out .of .appreciation .of .this .work,
.and .because .it .is .the .holiday .season, .the .division .manager .present .to .in-charge .internal
.auditor .with .a .gift .of .moderate .value. .Which .of .the .following .best .describes .the .action
.prescribed .by .The .IIA's .Code .of .Ethics?
A. .Accept .it, .regardless .of .other .circumstances, .because .its .value .is .insignificant.
B. .Not .accept .it .prior .to .submission .of .the .final .engagement .communication.
C. .Not .accept .it .if .he .is .presumed .to .impair .the .internal .auditor's .judgment.
D. .Not .accept .it, .regardless .of .other .circumstances, .because .its .value .is .significant. .-
.correct .answer.C. .According .to .Rule .of .Conduct .2.2, .the .decision .whether .to .accept .a .gift
.should .be .based .on .the .potentional .impairment .of .the .auditor's .judgement.
Which .of .the .following .most .likely .constitutes .a .violation .of .The .IIA's .Code .of .Ethics .by .an
.internal .auditor?
A. .Discussing .at .a .trade .convention .the .organization's .controls .over .its .computer
.networks.
,B. .Deleting .sensitive .information .from .a .final .engagement .communication .at .the .request
.of .senior .management.
C. .Investigating .executive .expense .reports .based .completely .on .rumors .of .padding.
D. .Purchasing .stock .in .a .target .organization .after .overhearing .an .executive .discussion .of
.possible .acquisition. .- .correct .answer.D. .Violation .of .Rules .of .Conduct .3.2
A .charter .is .one .of .the .more .important .factors .positively .affecting .the .internal .audit
.activity's .independence. .Which .of .the .following .is .least .likely .to .be .part .of .the .charter?
A. .Access .to .records .within .the .organization.
B. .The .scope .of .internal .audit .activities.
C. .The .length .of .tenure .of .the .chief .audit .executive.
D. .Access .to .personnel .within .the .organization. .- .correct .answer.C. .This .is .a .meter .of
.ongoing .judgment .for .the .board .and .should .not .be .codified .in .the .charter.
The .purposes .of .the .Standards .include .all .of .the .following .except
A. .Establishing .the .basis .for .the .measurement .of .internal .audit .performance.
B. .Guiding .the .ethical .conduct .of .internal .auditors.
C. .Stating .basic .principles .that .represent .the .practice .of .internal .auditing. .
D. .Fostering .improved .organizational .processes .and .operations. .- .correct .answer.B.
.Guiding .the .ethical .conduct .of .internal .auditors. .This .is .not .standard.
Which .Standards .expand .upon .the .other .categories .of .Standards?
A. .Performance .Standards
B. .Attribute .Standards
C. .Implementation .Standards.
D. .All .of .the .choices .are .correct. .- .correct .answer.C.
The .purpose .of .the .internal .audit .activity .can .be .best .described .as .
A. .Adding .value .to .the .organization.
B. .Providing .additional .assurance .regarding .fir .presentation .of .financial .statements.
C. .Expressing .an .opinion .on .the .adequate .design .and .functioning .of .the .system .of
.internal .control.
D. .Assuring .the .absence .of .any .fraud .that .would .materially .affect .the .financial .statements
.- .correct .answer.A.
The .Standards .consist .of .three .types .of .Standards. .Which .standards .apply .to .the
.characteristics .of .providers .of .internal .auditing .services?
A. .Implementation .Standards.
B. .Performance .Standards
C. .Attribute .Standards
D. .Independence .Standards .- .correct .answer.C.
A .primary .purpose .of .establishing .a .code .of .conduct .within .a .professional .organization .is
.to .
A. .Reduce .the .likelihood .that .members .of .the .profession .will .be .sued .for .substandard
.work.
,B. .Ensure .that .all .members .of .the .profession .perform .at .approximately .the .same .level .of
.competence.
C. .Promote .an .ethical .culture .among .professionals .who .service .others.
D. .Require .members .of .the .profession .to .exhibit .loyalty .in .all .matter .pertaining .to .the
.affairs .of .their .organization. .- .correct .answer.C.
An .accounting .association .established .a .code .of .ethics .for .all .members. .What .is .one .of
.the .association's .primary .purposes .of .establishing .the .code .of .ethics?
A. .The .outline .criteria .for .professional .behavior .to .maintain .standards .of .integrity .and
.objectivity
B. .To .establish .standards .to .follow .for .effective .accounting .practice.
C. .To .provide .a .framework .within .which .accounting .policies .could .be .effectively
.developed .and .executed.
D. .The .outline .criteria .that .can .be .used .in .conducting .interviews .of .potential .new
.accountants .- .correct .answer.A
In .analyzing .the .differences .between .two .recently .merged .businesses, .the .chief .audit
.executive .of .Organization .A .notes .that .it .has .a .formal .code .of .ethic .and .Organization .B
.does .not. .The .code .of .ethics .covers .such .things .as .purchase .agreements, .relationships
.with .vendors, .and .other .issues. .Its .purpose .is .to .guide .individual .behavior .within .the .firm.
.Which .of .the .following .statements .regarding .the .existence .of .the .code .of .ethics .in .A .can
.be .logically .inferred?
I. .A .exhibits .a .higher .standard .of .ethical .behavior .than .does .B.
II. .A .has .established .objective .criteria .by .which .an .individual's .actions .can .be .evaluated.
III. .The .absence .of .a .formal .code .of .ethics .in .B .would .prevent .a .successful .review .of
.ethical .behavior .in .that .organization.
A. .I .and .II.
B. .II .only.
C. .III .only.
D. .II .and .III. .- .correct .answer.B.
A .review .of .an .organization's .code .of .conduct .revealed .that .it .contained .comprehensive
.guidelines .designed .to .aspire .high .levels .of .ethical .behavior. .The .review .also .revealed
.that .employees .were .knowledgeable .of .it .provisions. .However, .some .employees .still .did
.not .comply .with .the .code. .What .element .should .a .code .of .conduct .contain .to .enhance .its
.effectiveness?
A. .Periodic .review .and .acknowledgment .by .all .employees.
B. .Employee .involvement .in .its .development.
C. .Public .knowledge .of .its .contents .and .purpose.
D. .Provisions .for .disciplinary .action .in .the .event .of .violations. .- .correct .answer.D.
The .IIA .Rules .of .Conduct .set .forth .in .The .IIA's .Code .of .Ethics
A. .Describe .behavior .norms .expected .of .internal .auditor.
B. .Are .guidelines .to .assist .internal .auditors .in .dealing .with .engagement .clients.
C. .Are .interpreted .by .the .Principles.
D. .Apply .only .to .particular .conduct .specifically .mentioned. .- .correct .answer.A.
, Today's .internal .auditor .will .often .encounter .a .wide .range .of .potential .ethical .dilemmas,
.not .all .of .which .are .explicitly .addressed .by .The .IIA's .Code .of .Ethics. .If .the .internal .auditor
.encounters .such .a .dilemma, .the .internal .auditor .should .always
A. .Seek .counsel .from .an .independent .attorney .to .determine .the .personal .consequences
.of .potential .actions.
B. .Apply .and .uphold .the .principles .embodied .in .The .IIA's .Code .of .Ethics.
C. .Seek .the .counsel .of .the .board .before .deciding .on .an .action.
D. .Act .consistently .with .the .code .of .ethics .adopted .by .the .organization .even .if .such .action
.is .not .consistent .with .The .IIA's .Code .of .Ethics. .- .correct .answer.B
In .complying .with .The .IIA's .Code .of .Ethics, .an .internal .auditor .should
A. .Use .individual .judgment .in .the .application .of .the .principles .set .forth .in .the .Code. .
B. .Respect .and .contribute .to .the .objectives .of .the .organization .even .if .it .is .engaged .in
.illegal .activities.
C. .Go .beyond .the .limitation .of .personal .technical .skills .to .advance .the .interest .of .the
.organization.
D. .Primarily .apply .the .competency .principle .in .establishing .trust. .- .correct .answer.A
An .internal .auditor .who .encounters .an .ethical .dilemma .not .explicitly .addressed .by .The
.IIA's .Code .of .Ethics .should .always
A. .Seek .counsel .from .an .independent .attorney .to .determine .the .personal .consequences
.of .potential .actions.
B. .Take .action .consistent .with .the .principles .embodied .in .The .IIA's .Code .of .Ethics.
C. .Seek .the .counsel .of .the .audit .committee .before .deciding .on .an .action.
D. .Act .consistently .with .the .employing .organization's .code .of .ethics .even .if .such .action
.would .not .be .consistent .with .The .IIA's .Code .of .Ethics. .- .correct .answer.B
Which .of .the .following .is .permissible .under .The .IIA's .Code .of .Ethics?
A. .In .response .to .a .subpoena, .an .auditor .appeared .in .a .court .of .law .and .disclosed
.confidential, .audit-related .information .that .could .potentially .damage .the .auditor's
.organization.
B. .An .auditor .used .audit-related .information .in .a .decision .to .buy .stock .issued .by .the
.employer .corporations.
C. .After .praising .an .employee .in .a .recent .audit .engagement .communication, .an .auditor
.accepted .a .gift .from .the .employee.
D. .An .auditor .did .not .report .significant .observations .about .illegal .activity .to .the .board
.because .management .indicated .that .it .would .resolve .the .issue. .- .correct .answer.A
The .IIA's .Code .of .Ethics .requires .internal .auditors .to .perform .their .work .with
A. .Honesty, .diligence, .and .responsibility.
B. .Timeliness, .sobriety, .and .clarity.
C. .Knowledge, .skills, .and .competencies.
D. .Punctuality, .objectivity, .and .responsibility. .- .correct .answer.A