Free IIA-CIA-Part1 Practice Test Questions 2026

Which of the following is a legitimate role for the internal audit activity in the organization's risk management process'?

A. Championing the establishment of a risk management framework

B. Creating and implementing new risk management processes

C. Maintaining sole responsibility for risk management within the organization

D. Setting the risk appetite of the organization

During an assurance engagement internal auditors interview operational management to gather and evaluate information. Which approach is most important for internal auditors to be able to listen effectively to interviewees in the given situation?

A. Make an audio recording of the interview

B. Interrupt with questions during unclear statements

C. Express interest by asking follow-up questions

D. Avoid periods of silence

A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?

A. Independent assessments.

B. Continuous monitoring.

C. Business continuity and backups.

D. Organization wide objectives.

Which of the following should be part of the internal audit activity's duties?

A. Actively reporting to the governing body.

B. Providing risk management frameworks.

C. Assisting management in developing processes and controls to manage risks and issues.

D. Identifying and mitigating significant risks to the organization.

Which of the following would be addressed in the internal audit charter?

A. Expertise requirements for internal auditors

B. Functional and administrative reporting lines for the chief audit executive

C. Audit engagements to be completed in the next fiscal year

D. Budget requirements for each engagement

The manager of the payroll department requested a review of the payroll process, but only wants the engagement to include processes related to approval of time worked. What type of activity is this?

A. Financial assurance engagement.

B. Operational consulting engagement.

C. Compliance assurance engagement.

D. Risk management consulting engagement.

Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?

A. Internal auditors have shown they have the freedom to carry out their responsibilities.

B. Internal auditors have demonstrated the skills needed to carry out the audit engagement.

C. Internal auditors have strictly followed a formal audit process in conducting their work.

D. Internal auditors have demonstrated an unbiased mental attitude.

An organization is in the process of hiring a new chief audit executive (CAE). Which of the following can the potential candidates expect to be a part of the recruiting process or in place when the CAE is hired?

A. There are checks to determine the existence of any potential conflict of interest.

B. The CAE reports functionally to the highest level of management, the CEO.

C. The CAE’s compensation depends on the performance of the organizational departments.

D. Hiring and termination of the CAE is dependent on the decision of senior executives.

For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board?

A. Chair should learn the current organizational culture of the company.

B. Chair should learn the current risk management system of the company.

C. Chair should determine the appropriateness of the current strategic risks.

D. Chair should gain an understanding of the needs of key stakeholders.

A business unit manager was impressed by the competence of the internal auditor who was conducting an assurance engagement in his area and the manager made the auditor an attractive job offer to begin after the audit was completed The auditor later told her auditor in charge that she was considering the offer. Which of the following IIA Code of Ethics principles was most likely violated?

A. Integrity

B. Confidentiality

C. Objectivity

D. No violation was committed

Which of the following is the best example of a risk appetite statement concerning an investment portfolio?

A. We will request CEO approval for investments greater than S20 million and board approval for investments greater than $50 million.

B. We will hedge 95 percent of our U S. currency exposure and 100 percent of our European currency exposure.

C. We have a moderate tolerance for investment earnings volatility with a target value at risk of S50 million.

D. We will report to the risk committee all credit losses greater than S10 million and all market value losses greater than S20 million.

Outsourcing a business activity is considered which of the following risk management techniques?

A. Sharing a risk.

B. Avoiding a risk.

C. Reducing a risk.

D. Mitigating a risk