CIA Part 1 Multiple Choice Questions and Answers | Latest Update | 2024/2025 | Graded A+

CIA Part 1 Multiple Choice Questions and Answers | Latest Update | 2024/2025 | Graded A+ "Except for the missing documentation noted above, the system of internal controls over petty cash is functioning as intended." The above statement is an example of a(n) A. Observation. B. Objective. C. Conclusion. D. Finding. C A 90% confidence interval for the mean of a population based on the information in a sample always implies that there is a 90% chance that the A. Estimate is equal to the true population mean. B. True population mean is no larger than the largest endpoint of the interval. C. Standard deviation will not be any greater than 10% of the population mean. D. True population mean lies within the specified confidence interval. D A charter is one of the more important factors positively affecting the internal audit activity's independence. Which of the following is least likely to be part of the charter? A. Access to records within the organization. B. The scope of internal audit activities. C. The length of tenure of the chief audit executive. D. Access to personnel within the organization. C. This is a meter of ongoing judgment for the board and should not be codified in the charter. A chief audit executive (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 with the CAE and the department have no expertise. The nature of the audit engagement is within the scope of internal audit activities. Management has 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 performance of the audit engagement. C. Accept the audit engagement and begin immediately, since it is a high-risk area. D. Discuss the timeline of the audit engagement with management to determine if sufficient time exists in which to develop appropr C A CIA is working in a noninternal-auditing position as the director of purchasing. The CIA signed a contract to procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the contract, the supplier presented the CIA with a gift of significant monetary value. Which of the following statements regarding the acceptance of the gift is true? A. Acceptance of the gift is prohibited only if it is not customary. B. Acceptance of the gift violates The IIA's Code of Ethics and is prohibited for a CIA. C. Because the CIA is no longer acting as an internal auditor, acceptance of the gift is governed only by the organization's code of conduct. D. Because the contract was signed before the gift was offered, acceptance of the gift does not violate either, The IIA's Code of Ethics or the organization's code of conduct. B A new staff internal auditor was told to perform an