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 analytical procedure involves comparing current-period financial data with prior-period data to identify unusual fluctuations?
Answer: Trend analysis
Trend analysis compares data across multiple periods to identify patterns or unusual changes that may indicate risk or error.
An internal auditor is reviewing a third-party vendor contract. Which risk is MOST unique to outsourced activities compared to in-house operations?
Answer: Lack of direct control over the vendor's internal controls and activities
Outsourcing creates unique risk because the organization cannot directly oversee or enforce controls over the third party's processes.
The IIA Code of Ethics requires internal auditors to respect the value and ownership of information they receive. This obligation BEST reflects which principle?
Answer: Confidentiality
Confidentiality requires auditors to respect and protect information acquired during the course of their work.
During follow-up on a prior audit, management reports that a recommended control has been implemented. The auditor should:
Answer: Verify implementation through independent testing or observation
Auditors should independently verify that corrective actions have been effectively implemented, not simply rely on management's assertion.
An internal auditor notices that a newly implemented ERP system is processing duplicate vendor payments. This finding most likely indicates a weakness in:
Answer: Application-level preventive controls in the ERP system
Duplicate payments processed by the ERP indicate a failure in application-level preventive controls designed to detect and block duplicates before processing.
Which of the following BEST describes the purpose of a control self-assessment (CSA)?
Answer: Enable management and staff to assess and improve their own controls collaboratively
CSA is a facilitated process in which management and staff collectively examine and assess the effectiveness of controls in their own areas.
When determining the reliance an internal auditor can place on the work of external auditors, the MOST important consideration is:
Answer: The competence and objectivity of the external auditors and relevance of their work
Internal auditors may rely on external auditor work after evaluating their competence, objectivity, and whether their findings are relevant to the internal audit's objectives.