CIA Part 1 Practice Questions AND ANSWERS GRADE A+ SOLUTIONS

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 Which of the following actions would be a violations of auditor independence? A. Continuing on an audit assignment at a division for which the auditor will soon be responsible as the result of a promotion. B. Reducing the scope of an engagement due to budget restrictions. C. Participating on a task force that recommends standards of control for a new distribution system. D. Reviewing a purchasing agent's contract drafts before their execution. A As part of a company-sponsored award program, an internal auditor was offered an award of significant monetary value by a division in recognition of the cost savings that resulted from the auditor's recommendations. According to the International Professional Practices Framework, what is the most appropriate action for the auditor to take? A. Accept the gift because the engagement is already concluded and the report issued. B. Accept the award under the condition that any proceeds go to charity. C. Inform audit management and ask for direction on whether to accept the gift. D. Decline the gift and advise the division manager's supervisor. CONTINUED......