Free Access to IIA.IIA-CIA-Part1.v2022-12-05.q247 with Valid Practice Test (Page 23)

Question 106

An internal auditor would most likely judge an error in an account balance to be material if the error involves:

A.A large percentage of net income.
B.A data input function.
C.An unverified routine transaction.
D.An unusual transaction for the company.

Question 107

In order to exercise due professional care as defined in the International Professional Practices Framework, an internal auditor should:
I. Consider the probability of significant noncompliance in each audit engagement.
II. Perform assurance procedures with sufficient care to ensure that all risks are identified.
III. Weigh the cost of assurance against the benefits.

A.I and III only
B.I, II, and III.
C.II and III only
D.I and II only

Question 108

Which of the following is an example of sharing risk?

A.An organization sold an unprofitable business unit to its competitor.
B.In order to spread total risk, an organization used multiple vendors for critical materials.
C.An organization outsourced a portion of its services to a third-party service provider.
D.An organization redesigned a business process to change the risk pattern.

Question 109

COBIT is primarily designed to:

A.Define auditing standards for information technology auditors.
B.Satisfy information technology regulatory requirements.
C.Provide guidance to govern information technology activities.
D.Assist technology professionals in interpreting technological specifications.

Question 110

Which of the following audit activities is within the scope of assurance activities as stated in the International Professional Practices Framework?

A.Review a make-or-buy decision and report a recommendation to management for approval.
B.Participate in negotiations for a corporate acquisition.
C.Assess financing alternatives for a new generator.
D.Perform an evaluation of management's planning process.

Question 106

Question 107

Question 108

Question 109

Question 110

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