Free IIA-CIA-Part1 Practice Test Questions 2026

An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

A. Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.

B. Not allow the audit manager to hire the contractor, as it would be a conflict of interest

C. Allow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.

D. Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.

The internal audit activity is performing an assessment of an organization's ethics program, and the engagement scope specifies a focus on the training program's design. According to IIA guidance, which of the following questions would be the most relevant?

1. Does the training include situations that require an ethical decision?

2. What percentage of employees have taken the training?

3. What are the results of the employee assessment of the organization's ethical climate?

4. Does the instructor provide feedback on the thought process to reach an ethical resolution?

A. 1 and 2.

B. 1 and 4.

C. 2 and 3.

D. 3 and 4.

After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?

A. The engagement supervisor violated The IIA's Code of Ethics principle of integrity.

B. The engagement supervisor violated The IIA's Code of Ethics principle of objectivity.

C. The engagement supervisor violated The IIA’s Code of Ethics principle of confidentiality.

D. The engagement supervisor did not violate any principles of The IIA’s Code of Ethics.

Which of the following would be an important aspect of an internal auditor's role in fraud management?

A. Utilizing analytical techniques to actively discover instances of potential fraud

B. Conducting fraud based audits to ensure that fraud will be detected during engagements

C. Implementing fraud prevention controls to minimize and mitigate the risk of fraud

D. Reporting instances of fraud discovered during engagements to regulatory bodies

According to IIA guidance, which of the following statements is true regarding proficiency?

A. The globally accepted Certified Internal Auditor designation is mandatory at chief audit executive levels.

B. Internal auditors are encouraged to obtain appropriate professional designations.

C. Specialty designations are required for those who perform specialized audit and consulting work.

D. Studies for professional designations are the preferred source of continuing professional education

According to MA guidance, which of the following statements is true regarding internal auditors' use of technology-based techniques?

A. Auditors must consider using technology if it advances the engagement, even when implementation costs exceed the benefits.

B. Auditors must considering using technology to reduce the organization's risk by detecting all instances of fraud.

C. Auditors must consider using technology only when the Implementation cost does not exceed benefits.

D. Auditors must consider using technology in a variety of engagements to ensure that their work is substantiated and infallible.

Which of the following is an example of a directive control?

A. Segregation of duties.

B. Exception reports.

C. Training programs.

D. Supervisory review.

Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?

A. Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment,

B. Policies that match internal auditors' performance with feedback from management of the area under review.

C. Policies that keep internal auditors in areas where they have vast audit expertise.

D. Policies that provide examples of inappropriate business relationships.

Which of the following statements is true regarding reporting results of the quality assurance and improvement program to senior management and the board?

A. Internal assessments must be reported to the board at least every five years

B. If supported by assessment results, reporting provides assurance that internal auditors demonstrate conformance with the Code of Ethics

C. Following the reporting the board must give the internal audit activity five years to correct any deviations

D. A report, including the results of both internal and external assessments must be provided to the board annually

The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions The CAE was an accounting manager for the organization six months ago How should she respond to the request?

A. Decline, if it is consulting engagement because she recently worked in the organization s accounting department

B. Accept, 11 is an assurance engagement, as she has been out of the department long enough to not impair objectivity.

C. Inform the accounting department mat me engagement can take place m the future once she has been removed from accounting for a longer period of time.

D. Accept, it is a consulting engagement with agreed-upon scope and services to be provided by me internal audit activity.

A manufacturer of power tools is experiencing regular fluctuations in the price of electrical power which is having a serious impact on the bottom line. Which of the following would be the most effective risk strategy to reduce the impact of these fluctuations?

A. Use an average cost for power to smooth the bottom line.

B. Analyze the amount of power used to produce each power tool.

C. Review the current process to identify opportunities to reduce power usage.

D. Use a forward contract for bulk power purchases

When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports?

1. Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.

2. Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

3. Setting up a hotline for employees to report fraudulent behavior anonymously,

4. Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.

A. 1 and 2 only.

B. 2 and 3 only.

C. 2 and 4 only.

D. 3 and 4 only