[Apr-2026] Exam Sure Pass IIA Certification with IIA-CIA-Part1 exam questions
Real IIA IIA-CIA-Part1 Exam Questions Study Guide
NEW QUESTION # 51
Which of the following scenarios demonstrates an impairment to internal audit independence?
- A. The internal auditor s denied access to partner information from management of me area under review
- B. The internal auditor was assigned to an assurance review of an area for which he previously had responsibilities
- C. The internal auditor concludes that controls operate effectively, although he did not gather supporting evidence
- D. The internal auditor tarts to disclose a potential conflict of interest relationship with management of the area under review
Answer: A
NEW QUESTION # 52
An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment.
Which of the following options would accomplish this task and be in conformance with the Standards?
- A. A team under the direction of the organization's chief audit executive with validation by a former manager of the internal audit activity.
- B. A team from an independent entity that previously employed the chief audit executive of the organization.
- C. The same external service provider because of its competency and experience with the organization.
- D. External industry associate that performed a similar review for a supplier of the organization.
Answer: D
NEW QUESTION # 53
According to IIA guidance, which of the following best describes acceptable methods for internal auditors to obtain qualified continuing professional education hours?
- A. Formal education, on-line training courses, and tutoring college students.
- B. Volunteering in relevant professional organizations, formal education, and tutoring college students.
- C. Volunteering in relevant professional organizations, on-line training courses, and tutoring college students.
- D. Volunteering in relevant professional organizations, formal education, and online training courses.
Answer: D
NEW QUESTION # 54
An engagement manager is reviewing the results of sampling work performed by staff internal auditors. Which interim report statement should immediately give the engagement manager cause for concern about the nature and quality of the sampling procedure?
- A. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, the confidence expressed is 95%.
- B. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, sample size is 80 out of a large population.
- C. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the true, but unknown population rate is less than 5%, the achieved upper deviation limit is 4.8%.
- D. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 5%, the sample size is 1580.
Answer: D
NEW QUESTION # 55
Which of the following would be considered a monitoring activity in organization wide risk management?
- A. Maintain rigorous and comprehensive documentation.
- B. Validate the results of management's self-assessment.
- C. Obtain authorizations and signatures.
- D. Perform reviews of personnel.
Answer: B
NEW QUESTION # 56
Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.
- A. 3 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2, and 3
Answer: C
NEW QUESTION # 57
During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director.
The auditor should:
- A. Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
- B. Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- C. Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
- D. Recommend to the chief audit executive that a fraud investigation be started.
Answer: B
NEW QUESTION # 58
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A flowchart.
- B. A process narrative.
- C. A walk-through.
- D. A risk and control matrix.
Answer: D
NEW QUESTION # 59
Which of the following best contributes to the effectiveness of the internal audit activity in an organization?
- A. Appropriate compliance coverage in the annual audit plan.
- B. Assurance of internal audit objectivity by the board.
- C. Appropriate terms of internal audit scope and responsibility in the charter.
- D. Regular review of the audit charter by management.
Answer: C
NEW QUESTION # 60
During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that
are unrelated to the basic business of the organization. The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization. Division management views the employee's actions as extra incentive to retain the employee. A decision to include the employee's action in the engagement final communication would bE.
A violation of the IIA Code of Ethics.
A violation of the reporting requirements in the Standards.
Justified and necessary, according to the IIA Code of Ethics and Standards.
- A. 1 only.
- B. 3 only.
- C. 1 and 2 only.
- D. 2 only.
Answer: B
Explanation:
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NEW QUESTION # 61
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
- A. Supporting managers to identify ways to mitigate risks.
- B. Providing assurance that risks are evaluated correctly.
- C. Evaluating risk management processes.
- D. Recommending accountability for risk management.
Answer: D
NEW QUESTION # 62
Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation'?
- A. Fraud specialists are better equipped to act as an expert witness in court
- B. Fraud specialists are better at using crime scene investigation techniques
- C. Fraud specialists are better at using computer-assisted audit techniques
- D. Fraud specialists are better able to properly apply due professional care
Answer: D
NEW QUESTION # 63
When issuing his department's performance report, a sales director in an insurance company knowingly fails to correct the reserves for unearned income that resulted from cancellations of policy subscriptions. This could be considered which of the following types of fraud?
- A. Skimming
- B. Information misrepresentation
- C. Disbursement fraud
- D. Asset misappropriation
Answer: D
NEW QUESTION # 64
Which of the following describes a key characteristic related to effective organizational communication?
- A. Comprehensive supervisory and verification procedures.
- B. A well-designed system of internal controls.
- C. A culture of integrity and transparency.
- D. Unique operating environments with varying complexity.
Answer: B
NEW QUESTION # 65
A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?
- A. Management is responsible for ensuring that the organization's CSR principles are communicated, understood, and integrated into decision-making processes.
- B. The board is responsible for ensuring that CSR objectives are established, risks are managed, performance is measured, and activities are appropriately monitored and reported.
- C. Generally, CSR activities are limited to the management of the organization; thus, employees do not have a responsibility for ensuring the success of CSR objectives.
- D. Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with CSR.
Answer: A
Explanation:
The most appropriate idea to include in the CSR policy is that management is responsible for ensuring that the organization's CSR principles are communicated, understood, and integrated into decision-making processes.
This aligns with good corporate governance practices which hold management accountable for embedding CSR into the corporate culture and daily operations of the organization, thus ensuring its effective implementation across all levels.References: Corporate governance and CSR integration best practices as documented in business management literature.
NEW QUESTION # 66
An organization has developed a model to determine the most profitable rate of production. The organization varies the cost of labor in the model to determine how much the changes affect the optimal production level. Which type of analysis does this scenario demonstrate?
- A. Forecast.
- B. Sensitivity.
- C. Decision.
- D. Critical path.
Answer: B
NEW QUESTION # 67
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?
- A. Internal auditors' training evaluation results.
- B. Annual risk assessment results.
- C. Ongoing monitoring results.
- D. Periodic management assessment results.
Answer: C
NEW QUESTION # 68
An organization sells products through distributors. The organization's chief audit executive insists that the organization's code of conduct be applicable to their distributors as well. Which of the following risks would this mitigate?
- A. Reputational damage
- B. intellectual property leakage
- C. Business continuity
- D. Market manipulation
Answer: A
NEW QUESTION # 69
According to the International Professional Practices Framework, risk is:
I. Defined as the negative effect of events that are expected to occur.
II. Measured in terms of consequences.
III. Measured in terms of likelihood.
- A. I, II, and III.
- B. II and III only
- C. I only
- D. I and II only
Answer: B
Explanation:
Section: Volume B
NEW QUESTION # 70
The auditor's aunt has been working in management of the area under review for a considerable amount of time.
Which of the following would best assist the internal auditor in this situation?
- A. The audit committee charter.
- B. The conflict of interest policy.
- C. The internal audit charter.
- D. The whistleblowing policy.
Answer: B
Explanation:
A conflict of interest is a situation where an internal auditor's personal or professional interests may compromise their objectivity, integrity, or ability to perform their work effectively2. An internal auditor should avoid any conflicts of interest or disclose them to the appropriate parties if they cannot be avoided3. A conflict of interest policy is a document that defines what constitutes a conflict of interest, how to identify and report it, and how to manage or resolve it4. Therefore, option D is the best answer, as it would assist the internal auditor in this situation by providing clear guidance and expectations on how to handle the potential conflict of interest arising from their aunt's involvement in the area under review.
References:
1: How to avoid conflict of interest with auditors | Smolin Lupin3 2: Auditing, Conflict of Interest, and Credibility: Conducting a ...5 3: Independence and Objectivity - The Institute of Internal Auditors or The IIA2 4: Conflict of Interest - Internal Audit and Security Staff4
NEW QUESTION # 71
Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area. Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?
- A. Engage the former head of the institution's derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.
- B. Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit executive approving the scope of the investigation and evaluating the adequacy of the work performed.
- C. Request that senior management allow a delay of the fraud investigation until the internal audit activity's on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.
- D. Request that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner with derivatives experience to perform all aspects of the investigation and subsequent reporting.
Answer: B
NEW QUESTION # 72
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