Free IIA-CIA-Part1 Exam Dumps

Question 6

With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.
B. Evaluate the organization's governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization's risk appetite.
C. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.
D. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.

Correct Answer:D

Question 7

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

A. Appoint the CAE as a member of the board.
B. Move the CAE's functional reporting to an executive who is not on the board.
C. Obtain full board approval of the internal audit activity's annual audit plan.
D. Move the CAE's functional reporting to the audit committee.

Correct Answer:D

Question 8

Which of the following must be in existence as a precondition to developing an effective system of internal controls?

A. A monitoring process.
B. A risk assessment process.
C. A strategic objective-setting process.
D. An information and communication process.

Correct Answer:B

Question 9

Which of the following is an example of a risk management avoidance response?

A. Exiting a marketplace.
B. Recalling a product.
C. Obtaining product insurance.
D. Outsourcing production.

Correct Answer:A

Question 10

According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

A. The services must be aligned with those defined in the internal audit charter.
B. The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.
C. The services may preclude assurance services from the consulting engagement.
D. The services impose no responsibility to communicate information other than to the engagement client.

Correct Answer:B