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IIA-CIA-Part1 dumps questions answers

IIA IIA-CIA-Part1 Dumps

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Essentials of Internal Auditing
Last Update: Jun 16, 2024
691 Questions with Explanation
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Essentials of Internal Auditing Questions and Answers

Questions 1

A manufacturer of power tools is experiencing regular fluctuations in the price of electrical power which is having a serious impact on the bottom line. Which of the following would be the most effective risk strategy to reduce the impact of these fluctuations?



Use an average cost for power to smooth the bottom line.


Analyze the amount of power used to produce each power tool.


Review the current process to identify opportunities to reduce power usage.


Use a forward contract for bulk power purchases

Questions 2

Which of the following organizations is adopting an acceptance technique in terms of its risk response?



An organization that takes no action in managing the possible exposure to an earthquake.


An organization that opts out of investing in a new region due to volatility in foreign exchange rates.


An organization that takes out insurance policies to protect its property and equipment.


An organization that deploys policies and procedures to guide business activities and practices

Questions 3

Which of the following is the best example of a risk appetite statement concerning an investment portfolio?



We will request CEO approval for investments greater than S20 million and board approval for investments greater than $50 million.


We will hedge 95 percent of our U S. currency exposure and 100 percent of our European currency exposure.


We have a moderate tolerance for investment earnings volatility with a target value at risk of S50 million.


We will report to the risk committee all credit losses greater than S10 million and all market value losses greater than S20 million.