IIA IIA-CIA-Part1 Practice Exams
Last updated on Oct 22,2026- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Oct 22,2026
A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities.
According to IIA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?
- A . Plan employee sessions and team building strategies for the organization to improve awareness of fraud among employees
- B . Review the investigation and implement any improvements to the process.
- C . Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.
- D . Determine why the fraud was not detected earlier and design controls to strengthen early detection.
During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud.
To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?
- A . Increase the sample size to be tested, ensuring a thorough review of the payroll records.
- B . Advise the chief audit executive of the clerk’s assertion, despite the lack of supporting evidence.
- C . Ask the clerk to provide a list of any suspicious new employee names on the payroll.
- D . Investigate the matter further to understand precisely how many payroll records were affected.
Anew internal auditor suspects fraud is taking place.
Which action should the new auditor take?
- A . Collect relevant audit evidence and begin working with management of the area to investigate the fraud.
- B . Inform the chief audit executive and meet with the suspect to determine whether the person committed fraud.
- C . Document supporting information and recommend an investigation to the appropriate audit management.
- D . Evaluate existing controls and implement new procedures to mitigate the opportunity for fraud.
Which of the following is part of a fraud detection program?
- A . Whistleblower hotline.
- B . Authority limits.
- C . Background investigations
- D . Evaluation of compensation programs.
Which of the following situations undermines the independence of the internal audit activity?
- A . The internal audit activity is responsible for the company’s risk management function, and its head manager reports to the chief audit executive.
- B . A senior member of the internal audit activity once worked in the corporate finance department.
- C . The organization’s CEO reviews the internal audit activity’s annual budget per the organization’s policies and procedures.
- D . The internal audit activity often uses management’s risk profile to build its own risk profile for annual planning.
Which of the following best illustrates the application of due professional care during an audit of the procurement department?
- A . The internal auditor began checking purchase requisitions for proper authorizations. He stopped when he discovered an instance of noncompliance. and he concluded the controls were ineffective.
- B . The internal auditor discovered an instance where management did not follow the standard bidding processes. The auditor assessed the validity of management’s
reasons for deviating from standard practice and the supporting documentation, and determined that the deviation was acceptable. - C . The internal auditor selected a sample of purchase orders with amounts greater than S5.000, the threshold at which the organization requires a bidding process. The auditor obtained documentation of the bidding process for each purchase order in the sample.
- D . The internal auditor analyzed bidding documents provided by management. Management indicated that the documents were purchase orders issued to a sole-source vendor Based on the analysis and management’s declaration, the internal auditor determined that the procurement process was effective.
The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties.
What type of controls would the auditor likely recommend to management to specifically address this problem?
- A . Entity-level.
- B . Preventive.
- C . Directive.
- D . Compensating.
Which of the following situations undermines the independence of the internal audit activity?
- A . The internal audit activity is responsible for the company’s risk management function and its head manager reports to the chief audit executive
- B . A senior member of the internal audit activity once worked in the corporate finance department
- C . The organization’s CEO reviews the internal audit activity’s annual budget per the organization’s policies and procedures
- D . The internal audit activity often uses management’s risk profile to build its own risk profile for annual planning
Which of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?
- A . The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system.
- B . The volume of nonroutine journal entries has steadily increased over time.
- C . The database of approved suppliers has not been reviewed in the last year.
- D . The recent employee survey indicates that some employees remain unaware of the organization’s whistleblower hotline.
Which of the following is an indicator that an organization’s risk management processes are effective?
- A . Departmental objectives are managed by department heads and are independent of the organization’s mission.
- B . Organization wide mechanisms exist to enable the identification and assessment of all significant risks.
- C . Department heads have the autonomy to determine risk responses that fall outside of the organizations risk appetite
- D . Relevant risk information is captured and communicated primarily between management and the board