IIA-CIA-Part1 Exam Dumps - IIA CIA Questions and Answers

In consulting engagements, the needs and expectations of the engagement client are a greater consideration compared to assurance engagements. This is because consulting engagements are typically more advisory in nature and specifically tailored to provide value and improve an organization's operations based on the client's requirements. In assurance engagements, the focus is more on the independent assessment against criteria or standards, which does not vary based on client needs to the same extent.References:

IIA Practice Advisory on Consulting Services

The scenario where managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions best illustrates a rationalization as the root cause of potential fraud. This situation could lead these managers to feel justified in committing fraud, believing they are undervalued or unfairly treated, which is a common form of rationalization in fraudulent activities.References: Fraud triangle theory, which includes rationalization as one of the key elements leading to fraud, as discussed in various IIA resources on fraud and ethical behavior.

An engagement classifies as a consulting service provided by the internal audit activity when the internal auditor assigned to the engagement was specifically requested by management of the area under review. This scenario typically indicates that the engagement is designed to add value and improve an organization’s operations, which aligns with the definition of consulting services according to IIA standards.References: The IIA's definitions and guidelines regarding the nature of consulting services, which often involve engagements initiated at the request of management for specific expertise or advice.

Corruption in the context of unethical practices typically involves wrongdoing for personal gain or to benefit another at the expense of the organization. Demanding payment from a vendor for decisions made in the vendor's favor is a clear example of corruption, as it involves misuse of authority for personal benefit. The other options listed deal with accounting manipulations or reimbursement fraud, which, while unethical, are not examples of corruption as defined in auditing terminology.References: Association of Certified Fraud Examiners (ACFE) - Fraud Definitions and Classifications

The most effective type of fraud test for looking for possible fictitious vendors would be running checks to uncover post office box addresses that match employee addresses. This test directly targets a common tactic used in vendor fraud schemes, where employees might set up fictitious vendor accounts and direct payments to themselves via P.O. boxes.References: IIA resources on auditing for fraud, which often discuss various methods for detecting fictitious vendors, including address comparisons.

Applying due professional care in planning an assurance engagement includes assessing the risks involved in the engagement area. An assessment of the risk of noncompliance with laws and regulations directly addresses the potential legal and regulatory exposures that could significantly impact the organization. This risk assessment helps ensure that the audit plan is appropriately focused and aligned with key risks, demonstrating due professional care.References: IIA standards on planning, which stipulate that due professional care includes an appropriate risk assessment.