Certified Internal Auditor 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 flashcards as text
Which of the following best describes the concept of 'reasonable assurance' in internal auditing?
Answer: A high level of confidence that objectives are being met, though not a guarantee
Reasonable assurance is a high but not absolute level of confidence that controls are functioning and objectives are being achieved.
An internal audit activity uses a risk-based audit plan. Which element is MOST critical when determining the audit universe?
Answer: The organization's risk appetite and strategic objectives
A risk-based audit plan aligns the audit universe with the organization's risk appetite and strategic objectives to prioritize high-risk areas.
When an internal auditor identifies a control deficiency that management chooses to accept rather than remediate, the auditor should:
Answer: Document management's risk acceptance decision in the audit report
When management accepts risk without remediation, the auditor must document this decision in the final audit communication.
The IIA's International Professional Practices Framework (IPPF) is BEST described as:
Answer: A conceptual framework including mandatory guidance and recommended guidance
The IPPF consists of mandatory guidance (Core Principles, Standards, Code of Ethics) and recommended guidance (Implementation Guidance, Supplemental Guidance).
An auditor is reviewing a company's segregation of duties in accounts payable. Which finding represents the GREATEST control risk?
Answer: One person approves vendor invoices and reconciles the accounts payable ledger
Combining invoice approval and ledger reconciliation in one person eliminates a key detective control and creates significant fraud risk.
Which type of audit engagement focuses on whether an organization's activities comply with applicable laws, regulations, and policies?
Answer: Compliance audit
A compliance audit evaluates the extent to which the organization adheres to laws, regulations, and internal policies.
According to IIA Standards, the chief audit executive (CAE) must communicate the internal audit activity's independence to whom?
Answer: To senior management and the board
The CAE must confirm to senior management and the board at least annually that the internal audit activity is independent.