Free IIA-CIA-Part1 Practice Test Questions 2026

Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization's internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to degenerate. as previous audit reports also showed a large number of issues. What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

A. Take an accommodating approach and change the overall rating of the audit report.

B. Take a compromising approach by modifying the tone of the report, while maintaining the critical findings.

C. Take an assertive approach and be persistent in attempting to convince the director.

D. Take an assisting approach and offer to assist with the implementation of action plans.

Which of the following is a true statement regarding whistleblowing?

A. Whistleblowing is one of several possible ethical structures an organization can undertake to encourage ethical behavior.

B. Whistleblowing programs help employees deal with ethical questions and instill ethical values into everyday behavior

C. Whistleblowers are current or former employees who are disgruntled and looking to retaliate.

D. Whistleblowers should inform the organization about actual criminal circumstances, not assumed allegations

Which of the following statements is true regarding how the scope of a consulting engagement should be established?

A. The engagement client should be able to determine the scope to be applied to the engagement

B. The internal auditor should establish a scope that does not impair her objectivity

C. Any attempts by the engagement client to limit the scope should be considered a scope limitation

D. The scope should include reviewing the effectiveness of the internal control environment

Which type of engagement requires that the client agrees with the techniques used by the internal audit activity?

A. A performance audit.

B. A sensitive fraud investigation.

C. A compliance audit

D. A consulting service.

Management is installing security cameras to identify unauthorized physical access to the organization's warehouse. This is an example of which of the following types of controls?

A. Detective controls.

B. Key controls.

C. Primary controls.

D. Preventive controls

An internal auditor has completed an assurance engagement Which of the following is most likely true regarding the engagement?

A. During audit planning, the auditor provided the client with the scope of the engagement for their agreement

B. The results of the engagement were included in a written report that was issued to the client who requested the engagement

C. During audit planning, the auditor determined that the engagement scope would include a review of the security and privacy of payroll records

D. The client requested the review of a new payroll system in order to improve the security of the system

According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?

A. The initial review of workpapers should be conducted after the final engagement report is issued.

B. Independent internal assessments of the internal audit activity should be performed by entry-level staff as part of on-the-job training.

C. Internal audit staff should be informed regularly of changes to policies and procedures.

D. Training documents should be destroyed at the end of the year to create space for the next year's training documents.

According to MA guidance, which of the following is true with regard to the internal audit charter?

1. It specifies the minimum resources needed for assurance engagements.

2. It requires final approval from senior management.

3. It defines the internal audit activity's authority and responsibilities.

4. It describes the expectations for communicating the results of a quality assurance and Improvement program.

A. 1 and 4 only.

B. 3 and 4 only.

C. 1.2. and 4.

D. 2. 3. and 4.

In a small company with a small budget, the board and senior management asked the chief audit executive (CAE) to develop specific controls prompted by a new regulatory requirement affecting a specific process. The CAE was also directed to report functionally to senior management. An audit engagement on this process was already set in the internal audit plan. Which of the following represents an impairment to the internal audit activity's independence?

A. The development of controls by the CAE.

B. The audit engagement regarding this process.

C. The functional reporting of the CAE to senior management.

D. The small budget.

During an assurance engagement, an internal auditor uses benchmarking research to support preparation of a report to stakeholders that contains significant findings about control deficiencies. Which of the following skills did the auditor demonstrate?

A. Internal audit management.

B. Conflict negotiation.

C. Critical thinking.

D. Persuasion and collaboration.

It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

A. The cost-benefit relationship of planned audits.

B. Proficiency needed to carry out engagements.

C. Achievement of the objectives of internal control.

D. Quantity of the audits performed.

According to The IIA’s Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

A. An internal audit manager collaborates with senior management to provide misleading information to government authorities.

B. An internal audit manager provides sample audit reports and workpapers to a friend without obtaining prior approval

C. An internal audit manager carries out a technical audit request without seeking expert opinion, despite a lack of the requisite skills.

D. An internal audit manager assigned to audit a sales process failed to reveal that the process owner is a relative