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IIA-CIA-Part1 Premium Exam & Latest IIA-CIA-Part1 Braindumps Questions

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IIA Essentials of Internal Auditing Sample Questions (Q748-Q753):

NEW QUESTION # 748
A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

A. The CAE should not interfere because there is no evidence that a conflict of interest has occurred.
B. The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.
C. The CAE should remind the senior auditor of his obligation to be objective and impartial.
D. The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.

Answer: D

NEW QUESTION # 749
An internal auditor is using mean-per-unit sampling to estimate the value of health benefit claims for a period. The auditor's desired precision is $20, 000. If the achieved precision is $10, 000, which of the following conditions is implied?

A. The standard deviation is smaller than expected.
B. The value of claims is understated.
C. The value of claims is overstated.
D. The standard deviation is larger than expected.

Answer: A

NEW QUESTION # 750
Which of the following best describes the trait that an internal auditor exercises when
considering the extent of work needed to achieve the engagement's objectives?

A. Proficiency.
B. Due professional care.
C. Objectivity.
D. Independence.

Answer: B

NEW QUESTION # 751
Which of the following is a strategic risk that internal auditors should consider when performing a third-party risk management engagement?

A. Cost overruns
B. Physical security
C. Loss of intellectual property
D. Conflict of interest

Answer: D

NEW QUESTION # 752
Which of the following is an example of a risk avoidance strategy?

A. Installing cameras in the mailroom
B. Exiting a product line
C. Outsourcing the payroll function
D. Insuring all fixed assets

Answer: B

Explanation:
Exiting a product line is an example of risk avoidance. This strategy involves eliminating a specific threat or risk entirely by discontinuing the activity that generates the risk. In this context, ceasing operations of a product line effectively removes all associated risks related to that line of business.References: Risk management strategies and concepts

NEW QUESTION # 753
......

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