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
Which of the following statements best describes a functional difference between external auditors and internal auditors?
- A . Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.
- B . Internal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.
- C . internal auditors are always employed by the organization, rather than outsourced, and external auditors are never employed by the organization but contracted independently.
- D . Internal auditors are most directly concerned with the detection of fraud, while external auditors are most directly concerned with the prevention of fraud.
During a procurement process audit the internal audit activity undertakes a fraud risk assessment and considers a range of possible fraud scenarios within the process.
Which of the following scenarios constitutes a pressure to commit fraud?
- A . An employee believes his poor compensation package justifies engaging in unethical behavior.
- B . The head of the department is the only signatory to purchase orders issued to third party contractors.
- C . Some employees strongly believe monetary gifts from vendors is a means of saving for life after employment.
- D . One of the employees was found to have an obsession with expensive jewelry
Which of the following organizations is adopting an acceptance technique in terms of its risk response?
- A . An organization that takes no action in managing the possible exposure to an earthquake.
- B . An organization that opts out of investing in a new region due to volatility in foreign exchange rates.
- C . An organization that takes out insurance policies to protect its property and equipment.
- D . An organization that deploys policies and procedures to guide business activities and practices
It facilitates the alignment of risk mitigation strategies with management priorities.
- A . 1. 2. and 3.
- B . 1.2. and 4.
- C . 1.3. and 4.
- D . 2. 3, and 4.
Which of the following is a limitation of detective internal controls in fraud management?
- A . Implementation costs tend to be higher than the expected benefits.
- B . They tend to be easy for fraudsters to circumvent.
- C . They are not designed to improve efficiency of operations.
- D . They are not effective in preventing fraud.
Which of the following would be most helpful to measure whether an internal audit activity successfully provides risk-based assurance?
- A . Percentage of highly significant risks covered by internal audit plan.
- B . Percentage of previously unknown risks identified per engagement.
- C . Percentage of internal audit staff skilled in alignment with the organization’s structure and key risks.
- D . Percentage of observations made in assurance engagements compared to advisory engagements.
Which of the following would be the most effective in helping to detect fraud?
- A . Code of conduct.
- B . Exit interviews.
- C . Fraud awareness training
- D . Employee promotion policy.
Which of the following would be the most effective in helping to detect fraud?
- A . Code of conduct.
- B . Exit interviews.
- C . Fraud awareness training
- D . Employee promotion policy.
Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records.
4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.
- A . 1 and 3.B.
- B . 1 and 4.
- C . 2 and 3.
- D . 2 and 4.
The organization’s internal audit charter was last updated six years ago.
To update the charter, which of the following actions is most appropriate for the chief audit executive to take?
- A . Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team.
- B . Perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter
- C . Use an internal audit charter template from another organization that operates within the same industry.
- D . Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved.