1
CIA Part 1 Practice Quiz #1 Questions and
Answers
According to the Standards, the normal course of work for an internal audit
activity is to do all the following except: - -Correct Answer-Prevent fraudulent
activities
According to the Standards, the normal course of work for an internal audit
activity is to: - -Correct Answer--Provide an independent appraisal
-Provide an examination
-Evaluate an organization's activities as a service to the organization
An internal auditor suspects fraud. Which of the following sample plans
should be used if the purpose is to select a sample with a given probability of
containing at least one example of the irregularity? - -Correct Answer-
Discovery
After completing an investigation, internal auditing has concluded that an
employee has stolen a material amount of cash receipts. A draft of the
proposed report on this finding should be reviewed by: - -Correct Answer-
Legal counsel
To properly evaluate the operations of an internal auditing department, a
quality assurance program should include: - -Correct Answer-External
1
, 2
reviews at lest once every five years by qualified persons who are
independent of the organization
Use the following information to answer questions 5-6. (Continuation
questions)
A fraud was perpetrated in a moderate sized company when the accounting
clerk was delegated too much responsibility. During the year, the company
switched suppliers of a service to a new vendor. The accounting clerk
continued to submit fraudulent invoices from the "old supplier". Because
contracting for services and approval of supplier invoices had been delegated
to the clerk, it was possible for the clerk to continue billings from the old
supplier and deposit the subsequent checks, which the clerk was responsible
to mail, into a new account the clerk opened in the name of the old supplier.
The clerk was considered an excellent employee and eventually was given
the added responsibility of preparing the department budgets. This added
responsibility allowed the clerk to actually budget for the amount of the
fraudulent payments. - -Correct Answer-
5. Which of the following controls would be least likely to prevent or detect the
fraud described above? - -Correct Answer-Mailing of check by someone other
than persons responsible for check signing or invoice approval
6. Which of the following audit procedures would most likely lead to the
detection of the fraud? - -Correct Answer-Take a sample of paid invoices and
verify receipt of services by departments involved
2
CIA Part 1 Practice Quiz #1 Questions and
Answers
According to the Standards, the normal course of work for an internal audit
activity is to do all the following except: - -Correct Answer-Prevent fraudulent
activities
According to the Standards, the normal course of work for an internal audit
activity is to: - -Correct Answer--Provide an independent appraisal
-Provide an examination
-Evaluate an organization's activities as a service to the organization
An internal auditor suspects fraud. Which of the following sample plans
should be used if the purpose is to select a sample with a given probability of
containing at least one example of the irregularity? - -Correct Answer-
Discovery
After completing an investigation, internal auditing has concluded that an
employee has stolen a material amount of cash receipts. A draft of the
proposed report on this finding should be reviewed by: - -Correct Answer-
Legal counsel
To properly evaluate the operations of an internal auditing department, a
quality assurance program should include: - -Correct Answer-External
1
, 2
reviews at lest once every five years by qualified persons who are
independent of the organization
Use the following information to answer questions 5-6. (Continuation
questions)
A fraud was perpetrated in a moderate sized company when the accounting
clerk was delegated too much responsibility. During the year, the company
switched suppliers of a service to a new vendor. The accounting clerk
continued to submit fraudulent invoices from the "old supplier". Because
contracting for services and approval of supplier invoices had been delegated
to the clerk, it was possible for the clerk to continue billings from the old
supplier and deposit the subsequent checks, which the clerk was responsible
to mail, into a new account the clerk opened in the name of the old supplier.
The clerk was considered an excellent employee and eventually was given
the added responsibility of preparing the department budgets. This added
responsibility allowed the clerk to actually budget for the amount of the
fraudulent payments. - -Correct Answer-
5. Which of the following controls would be least likely to prevent or detect the
fraud described above? - -Correct Answer-Mailing of check by someone other
than persons responsible for check signing or invoice approval
6. Which of the following audit procedures would most likely lead to the
detection of the fraud? - -Correct Answer-Take a sample of paid invoices and
verify receipt of services by departments involved
2
