Vendor: IIA
Exam Code: IIA-CIA-PART1
Exam Name: Certified Internal Auditor - Part 1, The Internal Audit Activity's Role in Governance, Risk, and Control
Certification: IIA Certifications
Total Questions: 992 Q&A
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Updated on: Jun 09, 2026
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In a manufacturing organization, all sales prices are determined centrally and are electronically sent to the distribution centers to update their sales price tables. Any pricing deviations must be approved by central headquarters. To determine how this process is functioning, an internal auditor should:
A. Document the flow of sales price information, and determine how the table is accessed and updated.
B. Develop a flowchart of the sales order process to determine how orders are taken and priced.
C. Identify who approves the shipment of goods and how the goods are priced.
D. Obtain a copy of the existing flowchart for the computer program to determine how price data are accessed.
Which of the following internal controls is likely to prevent pollution from waste disposal before it occurs, rather than detect it after it occurs?
A. Identification of large budget variances in disposal costs for hazardous chemicals.
B. Restricted access to environmental department files.
C. Formal on-the-job training program conducted by the environmental staff.
D. Samples of water and solid waste taken daily with the results recorded in a log.
During an audit engagement in an insurance company, an internal auditor discovered that senior management had purposely misclassified $200, 000 in assets on financial statements submitted to regulatory authorities in order to avoid significant statutory penalties. To remain in compliance with the IIA Code of Ethics, what would be the most appropriate action for the auditor to take?
A. Note the situation in the workpapers and inform the chief executive officer.
B. Send an informative memo to the external auditors.
C. Discuss the matter with audit management and ensure that the audit committee is informed.
D. Report the matter to regulatory authorities since senior management is implicated.
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