Free IIA-CIA-Part1 Practice Test Questions 2026

The collaborating style for conflict resolution, where the parties promote assertiveness and work together to develop a mutually beneficial solution, is best used in which of the following situations?

A. Parties are confident of the solution and are ready to defend it.

B. There is a high level of trust among the parties.

C. Resolution is time sensitive and a quick decision is necessary.

D. The issue is more important to one patty than the others.

A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation. When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?

A. The CAE refers to the Standards and explains that to protect her independence, she needs to remain isolated from the investigation.

B. The CAE refers to the Standards and explains that the internal audit activity must obtain competent assistance if needed.

C. The CAE refers to the Standards and explains that to protect her objectivity, she needs to remain isolated from the investigation.

D. The CAE describes the specifics of the allegation to underscore the importance of the situation and the need for expert investigation

Due to toe increased operational responsibility of the CEO. The chief audit executive (CAE) of an organization currently reports to the chief financial officer (CFO). What is the likely imped of such a situation?

A. There may be limitation m the scope of engagements that can be undertaken

B. The CPO could provide expert advice when auditing areas under his purview

C. The internal audit activity is adequately positioned when the CAE reports to a member of executive management

D. The expense of finance staff can be catted upon during an audit of finance-related areas

An internal auditor is assessing the effectiveness of the organization's risk management practices She checks to see whether risk management is an intégrai part of decision making and whether risk management is transparent, responsive to change and addresses uncertainty. According to HA guidance on risk management frameworks, which of the following approaches is the auditor most likely using?

A. Maturity model approach

B. Process element approach

C. Key principles approach

D. Key performance indicators approach.

What is expected of internal auditors in regards to due professional care?

A. Auditors perform assurance services without regard to cost

B. Auditors perform assurance services effectively to identify all risks

C. Auditors perform assurance services needed to achieve the engagement's objectives

D. Auditors perform assurance services to guarantee all significant risks will be addressed

According to MA guidance, which of the following gives the internal audit activity the authority to request supporting documentation for the invoices of a third-party service provider?

A. The internal audit policy manual.

B. The internal audit charter.

C. The board of directors.

D. The quality assurance and improvement program.

An internal auditor is reviewing the results of an employee survey at a mining company. Which of the following would alert the auditor to a potential ethics issue?

A. Women account for 20% of the total number of employees in the company.

B. Thirty percent of employees feel confident in raising concerns without a fear of retaliation.

C. Most employees believe that transparent and fair decision-making forms the basis of business ethics.

D. Employees with longer work experience believe that they deserve more privileges than new hires.

The chief audit executive (CAE) of a new internal audit activity is creating an internal audit charter According to IIA guidance, which of the following terms is most likely to be included in the charter?

A. Senior management will be present whenever the CAE interacts with the board, to ensure effective communication among all three parties.

B. Internal auditors will advise on the design of control policies and procedures in any area where the organization does not possess the requisite expertise,

C. Internal auditors will demonstrate competence, concern, and the dedication expected of a professional,

D. Internal auditors will receive performance-based compensation, including bonuses for reporting more than a stipulated number of observations.

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.

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

According to the IIA Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?

A. The auditor is prudent in the use and protection of information acquired in the course of his work.

B. The auditor does not accept anything that may impair or be presumed to impair his professional judgment.

C. The auditor does not perform services in a particular area when he lacks skills in that area.

D. The auditor performs work with honesty, diligence, and responsibility.

The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional-level developers, internal auditors have the necessary skills and competencies, and the internal audit activity is well positioned to assume this responsibility. Which of the following would be a potential concern if the board member’s suggestion is adopted?

A. Due professional care.

B. Internal audit objectivity.

C. Risk management assurance.

D. Professional development.