CIA Part 1 Practice Questions | Latest Update | 2024/2025 | Already Passed

CIA Part 1 Practice Questions | Latest Update | 2024/2025 | Already Passed A CAE for a very small internal audit department has just received a request from management to perform an audit of an extremely complex area in which the CAE and the department have no expertise. The nature of the audit engagement is within the scope of internal audit activities. Management had expressed a desire to have the engagement conducted in the very near future because of the high level of risk involved. Which of the following responses by the CAE would be in violation of the Standards? A. Discuss with management the possibility of outsourcing the audit of this complex area. B. Add an outside consultant to the audit staff to assist in the audit engagement. C. Accept the audit engagement and begin immediately because it is a high-risk area. D. Discuss the timeline of the audit engagement with management to determine if there is sufficient time to develop appropriate expertise. C A CAE has been requested by the audit committee to conduct an engagement at a chemical factory as soon as possible. The engagement will include reviews of health, safety, and environment (HSE) management and processes. The CAE knows that the internal audit activity does not possess the HSE knowledge nexessary to conduct such and engagement. The CAE should: A. Begin the engagement and incorporate HSE training into next years planning to prepare for the follow-up engagement. B. Suggest to the audit committee that the factory's own HSE staff conduct the engagement. C. Seek permission from the audit committee to obtain appropriate support from an HSE professional. D. Defer the engagement and tell the audit committee that it will take several months to train internal audit staff for such an engagement. C A CIA, working as the director of purchasing, signs a contract to procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the contract, the supplier presents the CIA with a gift of significant monetary value. Which of the following statements regarding the acceptance of the gift is correct? A. Acceptance of the gift would be prohibited only if it were non-customary. B. Acceptance of the gift would violate the IIA's Code of Ethics and is prohibited for a CIA. C. Because the CIA is not acting as an internal auditor, acceptance of the gift would be governed only by the organization's code of conduct. D. Because the contract was signed before the gift was offered, acceptance of the gift would not violate either the IIA's Code of Ethics or the organization's code of B A consulting activity appropriately performed by the internal audit activity is: A. Designing systems of control. B. Drafting procedures for systems control. C. Reviewing systems of control before implementation. D. Installing systems of control. C A specific objective of an audit of an organization's expenditure cycle is to determine if all goods paid for have been received and charged to the correct account. This objective would address which of the following primary objectives identified in the Standards? I. Reliability and integrity of financial and operational information. II. Compliance with laws, regulations, and contracts. III. Effectiveness and efficiency of operations. IV. Safeguarding of assets. a. I and II only b. I and IV only c. I, II, and IV only d. II, III, and IV only B