Free IIA-CIA-Part1 Practice Test Questions 2026

According to IIA guidance, which of the following statements is true regarding the internal audit activity's quality assurance and improvement program (QAIP)?

A. Internal assessments rely solely on the review of completed audit engagements for demonstrated performance

B. The chief audit executive is responsible for assessing the suitability and competence of an external assessor.

C. QAIP results must first be discussed with the board and approval obtained for distribution to senior management

D. At the board's discretion, the frequency of external assessments can exceed the fiveyear guideline

What should be the first step for a newly hired chief audit executive to build and maintain the proficiency of the internal audit activity'?

A. Incorporate the basic criteria of internal audit competency into job descriptions

B. Complete a periodic skills assessment of the internal audit activity

C. Develop a competency or skill assessment tool.

D. Perform benchmarking with competitors to learn what other firms are doing related to this topic

In an environment where employees are frequently penalized for mistakes and the organizational culture is one of fear and blame which of the following is an internal auditor most likely to find?

A. Management regularly overrides key controls

B. Employee turnover is tow

C. Careless behavior becomes normal

D. Employee morale is low

The internal audit activity was denied access to expenditure and budget reports because they were considered to be confidential. This situation would result in which of the following limitations of the internal audit activity?

A. Independence

B. Integrity

C. objectivity

D. Authority

According to IIA guidance, which of the following is the most accurate statement regarding the internal audit charter?

A. The IIA's Code of Ethics must exist outside of the charter to maintain independence.

B. The charter must be approved by both senior management and the board.

C. The nature of consulting services does not need to be defined in the internal audit charter.

D. The charter provides a framework for performing a broad range of value-added audit services.

Which of the following best demonstrates the board of directors' governance over internal control?

A. The board bears direct responsibility for developing and implementing the internal control system.

B. The majority of board members are experienced and qualified members of the organization's executive management team.

C. The board may be assisted by an audit committee, chaired by the chief audit executive.

D. The board is responsible for succession planning for the CEO and other key members of the executive management team.

Which of the following activities aligns with The IIA's Core Principles for the Professional Practice of Internal Auditing?

A. The chief audit executive reports to senior management for compensation decisions and communications of audit results to the board

B. Final reports from consulting engagements show the summary of findings, and the internal auditor’s advice is clearly distinct and separate from management's decisions

C. Internal auditors rotate through operations and management positions then perform audit engagements on these areas to ensure timely application of their knowledge

D. Due to limited resources, internal auditors prioritize assurance on internal controls and risk management and exclude evaluating governance processes, which are deemed outside of their core responsibilities

Which of the following situations is most likely to threaten the independence of the internal audit activity?

A. The chief audit executive reports functionally to the board and administratively to the CEO.

B. The annual budget for the internal audit activity is approved by the chief financial officer.

C. The internal audit activity is completely outsourced to an external service provider.

D. The internal audit manager provides consulting services to the procurement department, where she worked during the prior year.

During the audit of taxation processes in the organization internal auditors have verified that all employees of the finance department received training on taxation guidelines. The training is mandatory and is automatically assigned via email invitation to all new employees in the department. Which type of controls have the auditors tested?

A. Directive

B. Preventive

C. Detective

D. Automatic

Which of the following procedures will best help an internal auditor assess operating effectiveness of fraud prevention and detection controls?

A. Benchmarking best practices

B. Testing,

C. Mapping,

D. Interviewing

Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?

A. Regulatory approval from an accrediting agency.

B. Self-assessments against a competency framework.

C. Approval and signoff from the board of directors.

D. A review by external auditors on an annual basis

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

A. Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

B. Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

C. Briefing the organization's department managers on how to implement risk management processes into their daily operations.

D. Communicating with senior management to better understand how new purchasing controls will minimize payment processing time.