IIA IIA-CIA-Part1 Quiz 29 Topic 1 Questions 141-145

Question: 1

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

AFrom sharing to reduction.

BFrom acceptance to reduction.

CFrom sharing to avoidance.

DFrom acceptance to avoidance.

Show Answer

Question: 2

According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

ACAE reviews and approves the annual audit plan.

BCAE meets privately with The CEO at least annually.

CCAE meets privately with The board at least annually.

DCAE reports to the board regarding audit staff performance evaluation and compensation.

Show Answer

Question: 3

Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?

AIf an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.

BBecause the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.

DThe internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.

DThe internal audit activity should have appropriate knowledge and competence to conduct an asses .......framework.

Show Answer

Question: 4

Which of the following is considered a violation of The IIA's Code of Ethics?

AAn auditor conveys public information about an organization's financial condition.

BAn auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.

CAn auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.

DAn auditor reports material deficiencies, despite the fact that management is already aware of the defects.

Show Answer

Question: 5

Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

AManage and support a quality assurance and improvement program.

BMaintain industry-specific knowledge appropriate to the audit engagements

CSet clear performance standards for internal auditors and the internal audit activity.

DApply problem-solving techniques for routine situations.

Show Answer

IIA IIA-CIA-Part1 Quiz:29 Topic:1 Questions:141-145