Free IIA-CIA-Part1 Practice Test Questions 2026

Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?

A. The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system

B. The volume of nonroutine journal entries has steadily increased over time.

C. The database of approved suppliers has not been reviewed the last year

D. The recent employee survey indicates that some employees remain unaware of the organization’s whistieblower hotline.

Which of the following qualifies as an acceptable consulting service provided by the internal audit activity?

A. Develop training and system rollout plans in response to the results of the change readiness assessment of a new sales distribution model

B. Lead a risk self assessment session for laboratory managers to help identify inherent risks and provide recommendations on how to evaluate the risks

C. Audit a third party cloud service provider to review the effectiveness of governance and management controls in providing secure services to its customers

D. Conduct a post-implementation assessment of the enterprise resource planning system to determine whether project objectives were met and to identify opportunities to maximize potential benefits

Which statement is accurate regarding reporting on the quality assurance and improvement program (OAIP) to conform with the International Standards for the Professional Practice of Internal Auditing?

A. The chief audit executive (CAE) should report all stages of the OAlP's development and key milestones.

B. The CAE should report only corrective action plans that meet external assessor or stakeholder requirements.

C. The CAE should establish the form and content of program communication so that it is in alignment with the internal audit activity charter.

D. The CAE should disclose program details only after both internal and external assessments have been completed.

Which should the internal auditor first consider when assessing fraud risks during an engagement?

A. Compare the organizations fraud strategies with the industry's strategies.

B. Review any related prior fraud investigations.

C. Investigate any related fraud allegations.

D. Communicate any suspicious fraud activities to management.

Which of the following is an example of impairment to internal auditor independence or objectivity'?

A. Assurance engagements for functions over which the chief audit executive (CAE) has responsibility are overseen by a party outside the internal audit activity

B. Internal auditors provide consulting services relating to operations for which they had previous responsibilities

C. Internal auditors provide consulting services relating to operations for which they have current responsibilities

D. Consulting engagements for functions over which the CAE has responsibility are overseen by a party outside the internal audit activity

When dealing with various stakeholders which of the following is true regarding an internal auditor's responsibility to remain objective and independent?

A. When deciding between conflicting reports of a control's performance from a control operator and the operator's manager the internal auditor should generally believe the manager

B. Some audit issues may remain unremediated and unreported if management will accept recommendations that the internal auditor deems more important

C. The internal auditor may initially disagree with management s acceptance of a risk, but reevaluate and agree with management’s judgment after further discussion

D. When working on business unit audits it is sometimes sufficient for the internal auditor to report deficiencies only to the unit manager when remediation is not complex

Which of the following should an internal auditor take into consideration when making a judgement regarding whether management selected appropriate risk responses?

A. Significant risks

B. Risk capacity

C. Risk appetite

D. Risk tolerance

Which of the following would be considered an impairment to an internal auditor's objectivity when performing a review of the organization's procurement function'?

A. The internal auditor worked on the implementation of the accounting system within the organization before joining the internal audit activity last year

B. The internal auditor is part of a multidisciplinary team tasked to assist with a new project implementation checklist within the organization

C. The internal auditor worked as a sourcing specialist before joining the internal audit activity last year

D. The internal auditor participates in a cross-departmental team for information and data security within the organization

Which of the following would be the most effective fraud prevention control?

A. Email alert sent to management for checks issued over $100,000.

B. Installation of a video surveillance system in a warehouse prone to inventory loss.

C. New hire training to explain fraud and employee misconduct.

D. Daily report that identifies unsuccessful system log-in attempts

With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?

A. Assess compliance with the organization's code of conduct

B. Oversee the governance and risk management processes

C. Initiate new organizational control processes

D. Provide advice on organizational governance activities

Which of the following best describes the internal audit activity’s responsibility within a risk and control framework?

A. The internal audit activity constitutes the first line of defense in effective risk management.

B. The internal audit activity provides direction regarding internal controls implementation.

C. The internal audit activity verifies that management has met its responsibility for implementing effective controls.

D. The internal audit activity implements the internal control framework and advises management regarding best practices.

A global manufacturing company has three regional offices. The chief audit executive (CAE) is concerned about the cost of an upcoming external quality assessment of the internal audit activity. The last external assessment was performed six years ago. Recently, the internal audit staff at one of the regional offices performed an internal assessment. To ensure conformance with the Standards, what is the most appropriate action for the CAE to take?

A. Request from the audit committee an additional budget and an extension so that the external assessment could be performed next year.

B. Review the results of the internal assessment, identify weaknesses, and implement improvements at the remaining offices.

C. Request the regional office that performed the internal assessment to perform an assessment of the remaining offices.

D. Request that an external assessor validate the results of the internal assessment and review the remaining offices.