IIA IIA-CIA-Part1 Practice Exams
Last updated on Apr 07,2025- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Apr 07,2025
Which of the following is a primary benefit of implementing a governance risk management and compliance framework within an organization?
- A . Fewer internal audits
- B . More effective interviews
- C . Automated risk management strategy tools
- D . Reduced assurance costs
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 activities aligns with The IIA’s Core Principles for the Professional Practice of Internal Auditing?
- A . The chief audit executive reports to senior management for compensation decisions and communications of audit results to the board
- B . Final reports from consulting engagements show the summary of findings, and the internal auditor’s advice is clearly distinct and separate from management’s decisions
- C . Internal auditors rotate through operations and management positions then perform audit engagements on these areas to ensure timely application of their knowledge
- D . Due to limited resources, internal auditors prioritize assurance on internal controls and risk management and exclude evaluating governance processes, which are deemed outside of their core responsibilities
Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues.
Which of the following competencies is the engagement supervisor demonstrating?
- A . The ability to inspire trust
- B . The ability to communicate effectively
- C . The ability to display courage
- D . The ability to understand the needs of stakeholders
In order for an internal auditor to assess the opportunity for fraud to occur in an organization, which of the following does the auditor first need to understand?
- A . Fraud prevention.
- B . Fraud detection.
- C . Corporate culture.
- D . Forensic analysis techniques.
Which of the following would be a preventive control for helping to manage fraud in an organization?
- A . Reviews of reports to determine which issued payments lack evidence of supervisory review.
- B . A monthly review of new vendors performed by management for reasonableness.
- C . Bank reconciliations performed on a monthly basis by the accounting department.
- D . A code of conduct and whistleblower policy that must be signed by all employees annually.
During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement supervisor, who disagrees with his suspicions and directs him to continue with the engagement as planned.
Given the circumstance, what is the most appropriate action for the junior auditor to take?
- A . Document in the workpapers and expand testing.
- B . Continue with the engagement as planned, per the more senior auditor.
- C . Report the suspected fraud to law enforcement officials and seek financial restitution.
- D . Escalate the concern to the chief audit executive.
During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement supervisor, who disagrees with his suspicions and directs him to continue with the engagement as planned.
Given the circumstance, what is the most appropriate action for the junior auditor to take?
- A . Document in the workpapers and expand testing.
- B . Continue with the engagement as planned, per the more senior auditor.
- C . Report the suspected fraud to law enforcement officials and seek financial restitution.
- D . Escalate the concern to the chief audit executive.
When testing a sample of payroll records during an engagement, an internal auditor suspects mat fraud has been committed.
What should be the next step?
- A . The auditor should increase the sample size to determine the extent ol the fraud.
- B . The suspicions should be communicated to the chief audit executive.
- C . The testing should be completed with the results reported in the final audit report.
- D . A fraud investigator should examine the evidence and report back to the auditor.
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.