Free IIA-CIA-Part1 Exam Dumps

Question 36

To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?

A. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
B. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
C. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.
D. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.

Correct Answer:C

Question 37

Internal auditors must exercise due professional care by considering which of the following?
* 1. Cost of assurance in relation to potential benefits.
* 2. Adequacy and effectiveness of governance, risk management, and control processes.
* 3. Management's competency level in the area being evaluated.
* 4. Probability of significant errors, fraud, or noncompliance.

A. 1 and 2 only
B. 1, 2, and 3 only
C. 1, 2, and 4 only
D. 2, 3, and 4 only

Correct Answer:C

Question 38

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

A. Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
B. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.
C. Security cameras that monitor cash handling at the register are not functioning.
D. The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

Correct Answer:B