Free IIA-CIA-Part1 Exam Dumps

Question 21

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

A. Assurance services for outside clients are not covered under the internal audit charter.
B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
C. The nature of assurance services for outside clients should be defined in the internal audit charter.
D. The nature of assurance services for outside clients is the same as for internal clients.

Correct Answer:C

Question 22

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

A. To enable Triple Bottom Line reporting capability.
B. To facilitate the conduct of risk assessment.
C. To achieve and maintain sustainable development.
D. To fulfill regulatory and compliance requirements.

Correct Answer:C

Question 23

Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

A. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
B. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
C. The auditor recommends improvements for all of the organization's procedures and practices.
D. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

Correct Answer:B

Question 24

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

A. Preparing the financial statements for the company's defined contribution plan.
B. Performing a pre-implementation review of the company's payroll application.
C. Providing the COBIT framework as a possible IT management tool.
D. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

Correct Answer:A

Question 25

Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

A. The internal audit activity's plan for resource allocation.
B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.
C. The number of audits from the annual internal audit plan that were completed last year.
D. The qualifications and independence of the assessment Team.

Correct Answer:B