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
An internal auditor is assigned to an assurance engagement. The auditor’s aunt has been working in management of the area under review for a considerable amount of time.
Which of the following would best assist the internal auditor in this situation?
- A . The internal audit charter.
- B . The whistleblowing policy.
- C . The audit committee charter.
- D . The conflict of interest policy.
An internal auditor is assigned to an assurance engagement. The auditor’s aunt has been working in management of the area under review for a considerable amount of time.
Which of the following would best assist the internal auditor in this situation?
- A . The internal audit charter.
- B . The whistleblowing policy.
- C . The audit committee charter.
- D . The conflict of interest policy.
Which of the following is the primary benefit of an effective professional development program for internal auditors?
- A . An effective program may enhance internal auditors’ business acumen
- B . An effective program may ensure that HA Standards requirements are adhered to during audit engagements
- C . An effective program may ensure internal auditors’ effectiveness in setting the organization’s nsk management process
- D . An effective program may clarify management’s expectations of the auditors and their responsibilities to the organization
Which of the following should be implemented to promote independence of the internal audit activity?
- A . Internal auditors do not review an area where they previously worked
- B . The internal audit charter is reviewed and updated annually
- C . The chief audit executive reports functionally to the board
- D . Management does not influence the consulting services provided by the internal audit activity
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
- A . The chief audit executive (CAE) may consider including a disclaimer on independence in audit reports.
- B . The CAE may consider greater involvement of those with suitable knowledge of audit practice.
- C . Conformance with this Standard is not dependent upon the size of the internal audit activity.
- D . Due to the small size of the internal audit activity, having an external assessment once every seven
years is acceptable.
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
- A . The chief audit executive (CAE) may consider including a disclaimer on independence in audit reports.
- B . The CAE may consider greater involvement of those with suitable knowledge of audit practice.
- C . Conformance with this Standard is not dependent upon the size of the internal audit activity.
- D . Due to the small size of the internal audit activity, having an external assessment once every seven
years is acceptable.
During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids.
Which of the following would be the most effective preventative control to reduce these losses?
- A . Ensure that returned merchandise is restocked to shelves or sent to the manufacturer by an independent employee.
- B . Call a sample of customers who returned merchandise to test the legitimacy of the returns and check refund amounts.
- C . Require that a manager use a reserved register code to approve voids or refunds.
- D . Analyze voids and refunds by employee, credit card number, and amount for unusual numbers, amounts, or patterns.
Due to unfavorable economic conditions management decided to postpone new investments for the next year.
Which of the following best describes the risk management strategy used to address this situation?
- A . Risk mitigation
- B . Risk avoidance
- C . Risk reduction
- D . Risk transfer
Which of the following statements is true regarding risk management frameworks?
- A . The organization should ensure that it uses a universally-accepted risk management framework.
- B . The organization should ensure that its risk management framework is designed specifically to meet the needs of its operations.
- C . The organization should ensure that the board is responsible for implementing the risk management framework.
- D . The organization should ensure that the risk management framework has been validated by the internal audit activity for implementation.
An organization sells products through distributors. The organization’s chief audit executive insists that the organization’s code of conduct be applicable to their distributors as well.
Which of the following risks would this mitigate?
- A . Business continuity
- B . Market manipulation
- C . intellectual property leakage
- D . Reputational damage