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 providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop.
What is the best course of action for the auditor to take concerning the consulting service?
- A . Accept the consulting services only after receiving approval to do so from the board.
- B . Accept the consulting services. The objectivity won’t be impaired if it has been more than a year since he last worked in the area under review.
- C . Refrain from providing the consulting service because he was responsible for that area and his objectivity will be impaired,
- D . Disclose the potential impairment to the customer before accepting the consulting engagement
Due to extreme liquid fuel price fluctuations, management decided to designate a specific price below which liquid fuel shall not be sold to customers, but instead shall be pumped into storage tanks.
Which of the following risk responses has management selected?
- A . Risk reduction.
- B . Risk transfer.
- C . Risk acceptance.
- D . Risk avoidance.
Which of the following statements is true regarding consulting and assurance engagements performed by the internal audit activity?
- A . For both assurance and consulting engagements, the auditor must independently and objectively select the criteria for evaluation
- B . For a consulting engagement, internal auditors and management jointly agree on the adequate criteria needed to evaluate governance, risk management, and controls. This is not true of assurance engagements
- C . Engagement planning and fieldwork are similar for both types of engagements (there are no major differences) although the reporting process is different depending on which service is provided
- D . For a consulting engagement objectives must address governance risk management and control processes to the extent agreed upon with the client. This is not true of assurance engagements
A new internal auditor was recently recruited to the internal audit activity from the organization’s finance department.
What is likely to be the chief audit executive’s greatest concern regarding assigning the new auditor to upcoming audits in the finance department?
- A . The time it may take the new auditor to complete the assignment and report the findings to management.
- B . The qualifications of the new auditor and whether the auditor’s business knowledge is relevant to the assignment.
- C . The potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.
- D . The knowledge the new auditor may have of control weaknesses in the finance department.
What is the primary purpose of The IIA’s Code of Ethics?
- A . Communicate specific activities appropriate to the performance of internal auditing
- B . Promote ethical culture within corporations and other business organizations
- C . Establish mandatory standards of competence for the practice of internal auditing
- D . Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing
What is the primary purpose of The IIA’s Code of Ethics?
- A . Communicate specific activities appropriate to the performance of internal auditing
- B . Promote ethical culture within corporations and other business organizations
- C . Establish mandatory standards of competence for the practice of internal auditing
- D . Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing
Which of the following preventative controls would be most effective for organizations facing business disruptions and respective financial losses?
- A . Develop a business continuity plan for contingent situations,
- B . Insure the organization against financial losses.
- C . Rely on third-party cloud solution providers for the organization’s systems.
- D . Hedge company assets via purchasing derivatives.
The management team of an agricultural organization has prioritized corporate social responsibility (CSR) initiatives.
Which of the following would be considered a CSR activity?
- A . Offering a one-off donation to an environmental charity for its expansion efforts
- B . Organizing organization volunteers to provide periodic plantation skill sharing to farmers
- C . Providing special year-end monetary bonuses to the organization’s employees at all levels
- D . Arranging a free-of-charge picnic for all of the organization’s employees and their family members
The results of an assessment of the adequacy of controls would be considered incomplete or misleading unless the internal auditor considers which of the following?
- A . Number of mitigating controls.
- B . Effectiveness of the control environment
- C . Use of computer-assisted auditing techniques.
- D . IT security controls
According to IIA guidance, which of the following is a required aspect of an internal audit charter?
- A . Management approval
- B . Independent review
- C . Reporting relationships
- D . Quarterly assessment