Free IIA-CIA-Part1 Practice Test Questions 2026

At what point in time can an organization conclude that the established organizational governance framework was correctly implemented?

A. When the internal auditor conducts observations and fieldwork.

B. When management completes the risk assessment.

C. When the internal auditor evaluation shows its soundness.

D. When the organization's goals and objectives are met.

The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?

A. Internal auditors found no instances of double billing and concluded there were no significant risks in this area.

B. Internal auditors documented the scope and methodology of the data testing.

C. Internal auditors discussed with management how data is safeguarded.

D. Internal auditors received formal performance feedback from the engagement supervisor.

Which of the following situations undermines the independence of the internal audit activity?

A. The internal audit activity is responsible for the company's risk management function, and its head manager reports to the chief audit executive.

B. A senior member of the internal audit activity once worked in the corporate finance department.

C. The organization’s CEO reviews the internal audit activity’s annual budget per the organization’s policies and procedures.

D. The internal audit activity often uses management's risk profile to build its own risk profile for annual planning.

In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?

A. The effectiveness of process-level and transaction-level controls.

B. Conflicts of interest within the organizational structure of the senior management.

C. The alignment of management decisions with the level of risk the organization is willing to accept.

D. The actions of upper management in response to the internal audit activity's reporting

Which of the following actions should an organization take to detect an emerging risk of potential fraud?

A. Adopt reward and recognition programs that promote good behaviors

B. Undertake background checks for new employees as part of the hiring process

C. Establish an anonymous platform for reporting suspected unethical behaviors

D. Institute periodic educational training on expected ethical behaviors

Which of the following is a true statement regarding controls such as ethical values, tone at the top and operational style?

A. Transaction testing, mapping and flowcharting is applicable while testing such controls

B. Breakdowns in the these types of controls have historically led to fraudulent financial reporting

C. Such controls can be defined as inherently ob)ective and tangible elements of control

D. From an audit perspective it is significantly easier to assess ethical values than segregation of duties

Which of the following scenarios best illustrates the Fraud Triangle component known as "perceived opportunity"?

A. Substantial bonuses are awarded if financial targets are met.

B. Duties are not properly segregated.

C. Employees may perceive favoritism and feel overlooked and resentful.

D. Bonuses may not be paid this year.

The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?

A. The internal audit charter does not identify which audit services are outsourced

B. The internal audit charter has not been reviewed by the legal department

C. The internal audit charter has not been approved by the board within the past year

D. The internal audit charter does not describe the authority of the internal audit activity

According to NA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

A. To enable Triple Bottom Line reporting capability.

B. To facilitate the conduct of risk assessment.

C. To achieve and maintain sustainable development.

D. To fulfill regulatory and compliance requirements.

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

A. The risk of collusion between parties.

B. The risk of falsified reconciliations.

C. The risk of low-liquidity inventory.

D. The risk of damages to the inventory.

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A. Working conditions.

B. Employees' families.

C. Marketplace competition.

D. Shareholders and investors

In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

A. It A new internal audit activity was formed four years ago. An external assessment was never performed, but successive internal assessments were performed and support the conclusion that the internal audit activity conforms with the Standards

B. An internal self-assessment completed yesterday found that the internal audit activity did not conform with the Standards when carrying out its work. However, the preceding independent external assessment supports the conclusion that the internal audit activity conforms with the Standards.

C. To reduce costs, the CAE excluded the use of external assessors from the internal audit activity's quality assurance and improvement program for the past seven years.However, the CAE concluded that the internal audit activity conforms with the Standards because all internal assessments over the period have supported this conclusion.

D. The results of the last external assessment of the internal audit activity, performed a little over five years ago, indicated that the internal audit activity conforms with the Standards. The most recent internal assessment performed within the past year also indicates conformance.