Certified Internal Auditor MCQ Flashcards
7 cards from real Certified Internal Auditor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Certified Internal Auditor MCQ flashcards as text
According to the IIA Standards, which of the following best describes the purpose of the internal audit activity's quality assurance and improvement program (QAIP)?
Answer: To enable an evaluation of the internal audit activity's conformance with the Standards and assess whether auditors apply ethical principles
The QAIP is designed to evaluate conformance with the Standards and the Code of Ethics and to assess whether internal auditors apply ethical principles.
A chief audit executive (CAE) discovers that management has restricted the scope of an audit in a way that limits the internal audit activity's ability to fulfill its responsibilities. What is the CAE's most appropriate course of action?
Answer: Communicate the impact of the scope limitation to senior management and the board
The CAE must communicate scope limitations and their impact to senior management and the board to preserve organizational oversight.
Which control framework is most commonly referenced in the IIA Standards for evaluating the effectiveness of an organization's internal control system?
Answer: COSO Internal Control – Integrated Framework
The COSO Internal Control – Integrated Framework is the primary framework referenced for assessing the effectiveness of internal controls.
During a risk assessment, an internal auditor determines that a control exists but has not been tested. How should this control be classified in the risk assessment?
Answer: As an unverified control that should not reduce the assessed risk until tested
Untested controls cannot be credited for risk reduction because their operating effectiveness has not been confirmed.
An internal auditor is evaluating a company's accounts payable process and finds that the same employee approves purchase orders, receives goods, and processes vendor invoices. What type of control weakness does this represent?
Answer: Failure of segregation of duties
Having one employee perform all three functions (authorization, custody, and recording) violates the segregation of duties principle.
Which of the following sampling methods gives every item in the population an equal and known chance of being selected?
Answer: Simple random sampling
Simple random sampling ensures each population item has an equal and known probability of selection, making it statistically valid.
According to IIA guidance, when should internal auditors use a control self-assessment (CSA) approach?
Answer: To facilitate and supplement risk and control assessments by involving process owners
CSA is used to supplement traditional auditing by engaging process owners in evaluating risks and controls within their own operations.