IIA IIA-CIA-Part1 Practice Exams
Last updated on Oct 21,2026- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Oct 21,2026
According to HA guidance, if an internal auditor suspects fraud during an assurance engagement, what should the auditor do first?
- A . Recommend parties involved to be sanctioned in accordance with the organization’s policy.
- B . Determine whether any additional audit work needs to be performed.
- C . Launch an investigation to obtain details of the fraud and parties involved.
- D . Request that the responsible process owner remediate the issue immediately.
Which of the following would be a red flag for potential issues in the control environment?
- A . Segregation of duties during preparation of the financial statements
- B . Compensation structures that are based on commissions
- C . A low rate of turnover in key financial positions
- D . The presence of a whistleblower policy and fraud hotlinea
Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?
- A . The internal audit activity must have auditors on staff who collectively possess all of the competencies required to fulfill the internal audit plan,
- B . All internal auditors on staff should possess the knowledge, skills, and competencies needed to perform any assurance engagement on the audit plan.
- C . The internal audit activity must possess or obtain the competencies needed to carry out their professional responsibilities, including providing relevant advice and recommendations.
- D . Internal auditors collectively are responsible for ensuring that the internal audit activity has the competencies required to fulfill the internal audit plan.
In an internal audit charter, which of the following statements regarding the chief audit executive (CAE) would be most directly related to describing the responsibilities of the internal audit activity*?
- A . The CAE shall report functionally to the board and administratively to the chief financial officer
- B . The CAE and the Internal audit activity shall have full access to any and all records and personnel of the organization that are relevant to audit engagements
- C . The CAE and the internal audit activity shall be independent and objective in performing their work.
- D . The CAE shall report periodically on the performance of the internal audit activity relative to its plan
With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity’?
- A . Assess compliance with the organization’s code of conduct
- B . Oversee the governance and risk management processes
- C . Initiate new organizational control processes
- D . Provide advice on organizational governance activities
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
- A . CAE reviews and approves the annual audit plan,
- B . CAE meets privately with the CEO at least annually.
- C . CAE meets privately with the board at least annually,
- D . CAE reports to the board regarding audit staff performance evaluation and compensation.
An automobile manufacturer will become one of the first in the industry to adopt a new inventory management software. Despite the system being new to the market, senior management believes that the benefits are great enough to offset the potential risks.
Which of the following aspects of risk management does senior management’s decision best illustrate?
- A . Residual risk.
- B . Inherent risk.
- C . Risk tolerance.
- D . Risk appetite.
The organization s procurement manager asks the internal auditor to deliver training to the procurement team on the organization’s third-party risk management process.
Which of the following is the most appropriate response?
- A . The internal auditor should reject the request it she previously worked in the procurement area to maintain objectivity
- B . The internal auditor should reject the request if the internal audit team does not have the requisite expertise.
- C . The internal auditor should accept the request and in fact she may assume some management responsibilities temporarily if the result is a relevant training benefit
- D . The internal auditor may accept the request only if she defines the scope to ensure conformance with the Code of Ethics
Which of the following would be considered a monitoring activity in organization wide risk management?
- A . Validate the results of management’s self-assessment.
- B . Perform reviews of personnel.
- C . Maintain rigorous and comprehensive documentation.
- D . Obtain authorizations and signatures.
According to IIA guidance, the nature and scope of assurance and consulting services to be offered must be clearly delineated in which of the following internal audit documents?
- A . The internal audit policies and procedures handbook.
- B . The internal audit charter.
- C . The internal audit mission statement.
- D . Each internal audit engagement letter.