IIA IIA-CIA-Part1 Practice Exams
Last updated on Oct 23,2026- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Oct 23,2026
An internal auditor believes that a weakness exists in the control environment relating to the delegation of authority and responsibility within the management structure.
Which of the following actions should the internal auditor first consider in this matter?
- A . Recommend a control change and obtain management support
- B . Evaluate the potential impact on related controls
- C . Address the risk with senior management and the board
- D . Develop and communicate the scope and evaluation criteria to be used by management
Which of the following statements best illustrates why internal auditors assess soft controls?
- A . Assessing soft controls are an effective method of assessing risk related to personnel.
- B . Assessing soft controls, as opposed to hard controls, makes it easier to evaluate operating effectiveness.
- C . Assessing soft controls can help internal auditors in undertaking root-cause analysis.
- D . Assessing soft controls provides more objective information than assessing hard controls.
Which of the following strategies would be the most effective to share an organization’s risk of losses through foreign currency transactions related to the accounts payable process?
- A . Using a hedging strategy.
- B . Implementing controls to follow up on deviations.
- C . Purchasing liability insurance.
- D . Purchasing foreign currency reserves.
Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?
- A . The quality assurance and improvement program identified several opportunities for the internal audit activity to make improvements.
- B . In lieu of an external assessment, the internal audit activity performed a self-assessment with independent external validation.
- C . During an internal quality assessment, it was identified that rotational auditors often perform consulting engagements for areas of the organization where they had previous responsibilities.
- D . External assessments are performed every five years by a competent internal audit team from the organization’s parent company.
Which of the following should a general internal auditor be able to characterize as an IT-related risk?
- A . Computer servers are in a room that is accessible to all employees,
- B . An IT architect avoids taking vacations and sharing his workload with coworkers,
- C . Hours billed by IT developers exceed 24 hours daily.
- D . Audit logs are lacking in a system that processes personal data.
Which of the following best describes the board’s role in establishing effective organizational governance?
- A . The board is involved in approving operational policy
- B . The board monitors key processes and procedures
- C . The board has oversight responsibility for organizational resources
- D . The board approves management’s detailed plans and objectives
According to IIA guidance, which of the following statements is true regarding internal auditors’ knowledge, skills and other competencies?
- A . The chief audit executive (CAE) must obtain competent advice and assistance if the internal audit activity lacks the knowledge, skills, or other competencies needed to complete the audit engagement
- B . Internal auditors must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization and should have the expertise of a fraud investigator
- C . Internal auditors need to have basic knowledge of key IT risks and controls and available technology-based audit techniques in order to perform their assigned work
- D . The CAE must refuse a consulting engagement if the internal audit activity lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement
Which of the following is considered to be a threat to the internal auditor’s objectivity?
- A . The auditor drafted the operational procedures of the area that she is currently auditing.
- B . The auditor received a bonus that was approved by the board of directors.
- C . The assigned auditor recommended operational procedures for the organization.
- D . The assigned auditor rotated out of the same business activity three years ago
In which of the following ways can a whistleblower hotline serve as a prevent
- A . active control? 3
- B . Third parties who operate the hotline ensure anonymity for whistle blowers. D Whistleblower tips help discover wrongdoings and violations of the code of conduct.
Potential perpetrators of fraud know that their actions can be reported easily. - C . Better investigation protocols are triggered by the whistleblower hotline.
Which of the following scenarios most likely indicates that the organization is not managing risks effectively?
- A . Securities market oversight authorities fined the organization for not disclosing significant transactions with a related party.
- B . A construction project is significantly delayed due to an unexpected global pandemic.
- C . Senior management terminated contracts with certain solar panel manufacturers due to potential allegations of child labor usage.
- D . A local community filed a lawsuit against a wind farm developer even though the developer complied with all legal requirements.