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
According to HA guidance, which of the following would best support the internal auditor’s conclusion that the organization’s risk management processes are effective?
- A . The organization has identified all applicable operational and financial risks.
- B . The organization has documented its strategic and business objectives.
- C . The organization has selected risk responses aligned with its risk appetite.
- D . The organization has documented risk information pertinent to its business.
Which of the following would best assist the internal audit activity in assessing whether an organization’s responses to risk are aligned with its risk appetite?
- A . Analyzing the results of successful testing of controls and monitoring procedures implemented by management
- B . Determining that there are no gaps between the internal auditors’ risk assessment and the risk assessment performed by the organization
- C . Obtaining evidence that employees throughout the organization are aware of the organization s risk appetite
- D . Verifying that previously identified organizational risks were documented in board meeting minutes
Which of the following factors are commonly assessed to determine the magnitude of risk events?
- A . Tolerance and appetite
- B . Inherent and residual risk
- C . Cost and benefit
- D . Impact and likelihood
According to IIA guidance, which of the following best describes expense reimbursement fraud?
- A . Theft of cash after it is recorded in the books
- B . Theft of cash before it is recorded in the books
- C . Theft of assets through fictitious or inflated invoices
- D . Theft of assets through false mileage travel logs and meal charges
According to IIA guidance, which of the following best describes expense reimbursement fraud?
- A . Theft of cash after it is recorded in the books
- B . Theft of cash before it is recorded in the books
- C . Theft of assets through fictitious or inflated invoices
- D . Theft of assets through false mileage travel logs and meal charges
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization’s business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior to the event, the executive asked for the chief audit executive s (CAE’s) advice.
What should the CAE recommend as the most appropriate course of action for the executive?
- A . Attend the event, but decline the offer to use the luxury vehicle
- B . Decline the invitation to the exhibition.
- C . Ask the board to decide on the issue.
- D . Select a lower-level employee to enjoy the luxury vehicle instead
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization’s business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior to the event, the executive asked for the chief audit executive s (CAE’s) advice.
What should the CAE recommend as the most appropriate course of action for the executive?
- A . Attend the event, but decline the offer to use the luxury vehicle
- B . Decline the invitation to the exhibition.
- C . Ask the board to decide on the issue.
- D . Select a lower-level employee to enjoy the luxury vehicle instead
Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.
- A . 1 and 2 only.
- B . 2 and 3 only.
- C . 2 and 4 only.
- D . 3 and 4 only
The chief audit executive (CAE) is drafting the annual internal audit plan and seeks input from senior management and the external auditor prior to submitting it for approval to the board.
According to MA guidance, which of the following statements is true regarding this scenario?
- A . The CAE’s actions are likely to impair the Independence of the internal audit activity.
- B . The CAE acted appropriately, and the independence of the internal audit activity was not impaired.
- C . The CAE should have developed the audit plan without outside influence to maintain objectivity.
- D . The CAE acted appropriately, as he has authority to determine who reviews and approves the audit plan.
Which of the following statements is true regarding electronic funds transfer (EFT)?
- A . EFT is a popular mechanism for improving efficiency, but results in less internal control.
- B . EFT significantly reduces the risk of fraud by eliminating the need for authorizations.
- C . EFT eliminates payment delays due mostly to the introduction of automated cash controls,
- D . EFT makes use of numerous automated controls, but is still vulnerable to fraudulent accounting entries.