[2026] Pass IIA-CIA-Part1 Exam - Real Questions and Answers
IIA-CIA-Part1 Exam Questions Get Updated [2026] with Correct Answers
IIA-CIA-Part1 Certification Exam is ideal for individuals who are interested in pursuing a career in internal auditing. Essentials of Internal Auditing certification provides a comprehensive understanding of the essential principles and practices of internal auditing, which is essential for any individual looking to build a career in this field. Essentials of Internal Auditing certification is also ideal for internal auditors who are looking to enhance their knowledge and skills and improve their credibility in the industry.
Passing the IIA-CIA-Part1 exam is an important step towards obtaining the CIA certification, which is recognized as a mark of excellence in the internal audit profession. The CIA program is highly respected by employers and provides internal auditors with the skills and knowledge necessary to advance their careers.
NEW QUESTION # 269
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?
- A. Performing background checks on newly hired employees.
- B. Requiring management approval for expenses.
- C. Segregating duties in the payroll processes.
- D. Confirming receipt of goods or services.
Answer: B
NEW QUESTION # 270
Which of the following is an appropriate role for the internal audit activity?
- A. Ensuring the organization's key risks are managed through appropriate controls.
- B. Implementing new controls to promote continuous improvement.
- C. Assisting the organization in maintaining effective controls.
- D. Validating control assessments performed by the external auditor.
Answer: C
Explanation:
According to IIA standards, the internal audit activity should assist in maintaining effective controls but should not assume management's responsibilities, such as implementing or ensuring controls, to preserve its independence.
NEW QUESTION # 271
Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation. What should the internal audit activity do?
- A. Turn down the engagement because an operational audit should not review policies and procedures.
- B. Perform the engagement and make appropriate recommendations for policies and procedures.
- C. Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.
- D. Turn down the engagement because recommending controls would impair future objectivity regarding this client.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION # 272
Which of the following represents the correct order of the risk management process?
- A. Risk management metrics, resource allocation, risk assessment, effective communication, post-mortem analysis.
- B. Risk assessment, resource allocation, risk governance and reporting, post-mortem analysis, feedback.
- C. Resource allocation, risk management metrics, risk assessment, post-mortem analysis, effective communication.
- D. Resource allocation, risk monitoring, risk assessment, feedback, post-mortem analysis.
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 273
Which of the following is not true with regard to the internal audit charter?
- A. It specifies the minimum resources needed for the internal audit activity.
- B. It should be approved by senior management and the board.
- C. It provides a basis for evaluating the internal audit activity.
- D. It defines the authorities and responsibilities of the internal audit activity.
Answer: A
Explanation:
Section: Volume B
Explanation/Reference:
NEW QUESTION # 274
For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board?
- A. Chair should gain an understanding of the needs of key stakeholders.
- B. Chair should learn the current organizational culture of the company.
- C. Chair should learn the current risk management system of the company.
- D. Chair should determine the appropriateness of the current strategic risks.
Answer: B
NEW QUESTION # 275
Two individuals are being considered for an audit team that is to perform a highly technical review.
Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?
I. Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.
II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.
- A. I only
- B. Both I and II.
- C. II only
- D. Neither I nor II.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION # 276
An objective for an audit of a medical research corporation is to evaluate management's controls to ensure that timely reports are submitted to sponsors of contracted research projects. In planning the audit to achieve this objective, the auditor should begin by:
- A. Observing report preparation in a number of laboratories.
- B. Reviewing policies and procedures.
- C. Interviewing a group of research managers.
- D. Sending a questionnaire to a sample of research sponsors.
Answer: B
NEW QUESTION # 277
What role, if any, should the internal audit activity have in the process of following up on observations and recommendations made by the external auditors?
- A. The internal audit activity should review the adequacy and effectiveness of management's follow-up actions.
- B. The internal audit activity should have no role in this process in order to ensure independence.
- C. The internal audit activity should become involved only if specifically requested by management or the board of directors.
- D. The internal audit activity should become involved only if the chief audit executive has sufficient evidence that the follow-up is not occurring.
Answer: A
NEW QUESTION # 278
With regard to external assessments of an internal audit activity (IAA), which of the following is the chief audit executive required to discuss with the board?
- A. External reviewer conflicts of interest, and the timeline of the external assessment.
- B. The need for an external assessment more frequently than once every five years, and the simplest method for the external reviewer to join the IAA's organization.
- C. The simplest way for the external reviewer to join the IAA's organization, and the timeline of the external assessment.
- D. External reviewer conflicts of interest, and the need for an external assessment more frequently than once every five years.
Answer: D
Explanation:
Section: Volume D
Explanation/Reference:
NEW QUESTION # 279
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?
- A. Delegate authority to members of senior management.
- B. Determine the organization's overall risk appetite.
- C. Establish a governance committee.
- D. Identify key stakeholders and their expectations
Answer: C
NEW QUESTION # 280
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again.
What concerns should be considered prior to assigning the audit to the same auditor?
- A. Intimidation threats may compromise the auditor's objectivity due to multiple negative audit reports completed by the auditor.
- B. A negative cognitive bias may be in place that affects the employee's objectivity due to the recent audits with uncorrected control deficiencies.
- C. The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity's independence.
- D. The auditor may have formed a cultural bias, as the department under review is in the auditor's geographic area.
Answer: C
Explanation:
When an internal auditor has audited the same department repeatedly, familiarity threat is a significant concern. The IIA Standards emphasize maintaining objectivity and avoiding circumstances that could impair the auditor's unbiased attitude. Auditing the same department annually for several years can lead to familiarity, which can compromise the internal audit activity's independence and objectivity (Option B). According to Standard 1130: Impairment to Independence or Objectivity, auditors must avoid auditing areas where repeated engagements might lead to a lack of objectivity due to familiarity.References:
* IIA Standards, Standard 1130: Impairment to Independence or Objectivity
* IIA Practice Guide: Independence and Objectivity
NEW QUESTION # 281
Which type of control is designed to directly mitigate internal and external risks at the organization wide level, furthering the achievement of many overall organizational objectives?
- A. Entity-level control.
- B. Transaction-level control.
- C. Process-level control.
- D. Complementary control.
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 282
Which of the following criteria must be met when appointing an external assessor to conduct a quality assessment of an internal audit activity?
- A. The assessor must be certified in internal auditing.
- B. The assessor must be evaluated based on experience and knowledge.
- C. The assessor must be able to demonstrate independence to the board.
- D. A different assessor has to be assigned at least once every five years.
Answer: C
NEW QUESTION # 283
Tre chiet audit executive (CAE) of large organization is preparing job descriptions to hire five new general internal audit staff, two new IT auditors and a senior auditer how is the CAE likely to describe IT requirements for me general internal audit statt positions?
- A. The candidate must be able to evaluate IT governance and cybersecurity frameworks.
- B. The candidate must be able to understand IT-elated risk and general controls
- C. The candidate must be able to execute web servers, applications, and databases testing procedures.
- D. The candidate must be able to apply data analytics tolls methodologies
Answer: B
Explanation:
For general internal audit staff positions, the chief audit executive (CAE) is likely to describe IT requirements as needing to understand IT-related risk and general controls. This requirement is essential for general auditors to evaluate how IT risks impact broader organizational risks and understand basic IT controls without necessarily needing the specialized skills to evaluate IT governance or perform technical IT testing.
References: General hiring practices for internal auditors as advised by the IIA, focusing on foundational IT knowledge suitable for general audit roles.
NEW QUESTION # 284
According to IIA guidance, which of the following actions best demonstrates due professional care by an internal auditor when she discovers a number of fraud-related red flags during an audit engagement?
- A. Notify the board of the possible fraud immediately
- B. Perform further testing to verify the existence of fraud.
- C. Suspend the engagement and undertake a formal fraud investigation.
- D. Conclude the engagement and inform management that fraud has occurred
Answer: B
NEW QUESTION # 285
Which of the following preventive controls would be most effective for organizations facing business disruptions and respective financial losses?
- A. Insure the organization against financial losses.
- B. Develop a business continuity plan for contingent situations.
- C. Rely on third-party cloud solution providers for the organization's systems.
- D. Hedge company assets via purchasing derivatives.
Answer: B
Explanation:
A business continuity plan (BCP) is a preventive control that aims to ensure the continuity of critical business functions and processes in the event of a disruption or disaster. A BCP identifies the potential risks and impacts that could affect the organization, and outlines the strategies and actions to mitigate them and resume normal operations as soon as possible. A BCP can help organizations to reduce the financial losses and reputational damages caused by business interruptions, and enhance their resilience and preparedness.
References:
- Business continuity: Managing disaster and disruption
- Preventive controls
- 25 Key Financial Controls for Small Businesses
- 5 Steps To Protect Your Business From Supply Chain Disruptions
NEW QUESTION # 286
Which of the following statements regarding segregation of duties is true?
- A. Policies on segregation of duties in information systems must recognize the difference between logical and physical access to assets.
- B. A restrictive segregation-of-duties policy can help improve an organization's communication.
- C. When evaluating an organization's policy on segregation of duties, employee competence does not need to be considered.
- D. An organizational chart provides an accurate definition of segregation of duties.
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 287
Which of the following is true regarding a quality assurance and improvement program?
- A. External assessments are conducted by senior members of the internal audit activity.
- B. External assessments are conducted at least once every five years while internal assessments are ongoing.
- C. Internal assessments are conducted by an independent assessor or assessment team from outside the organization.
- D. Internal assessments are conducted at least once every five years while external assessments are ongoing.
Answer: B
NEW QUESTION # 288
An internal audit team was assigned to review the organization's information security protocol After fieldwork was completed an internal auditor identified an error in the review of security access The error could affect the overall results of the engagement Which of the following is the most appropriate course of action for the internal auditor?
- A. Issue the audit report to senior management on schedule but include a disclaimer about the error
- B. Proceed with addressing the error and report any corrections to the engagement supervisor during the scheduled exit meeting
- C. Inform the engagement supervisor of the error and allow the supervisor to determine the appropriate action to take
- D. Proceed with the scheduled closing of the engagement without consideration of the identified error
Answer: C
Explanation:
The most appropriate course of action when an internal auditor identifies an error that could affect the overall results of the engagement is to inform the engagement supervisor of the error and allow the supervisor to determine the appropriate action to take. This approach ensures that the error is addressed according to the internal audit's standard procedures and maintains the integrity and accuracy of the audit report. References:
IIA Standards on supervision and due professional care, which require that issues identified during audit engagements be escalated appropriately to ensure accurate and reliable audit results.
NEW QUESTION # 289
An internal auditor was completely honest with operational management when delivering unfavorable audit results. Which of the following best describes the IIA Code of Ethics principle that the auditor demonstrated?
- A. Transparency
- B. Objectivity
- C. Competency
- D. Integrity
Answer: D
Explanation:
The IIA Code of Ethics states that integrity is fundamental and describes behaviors such as honesty and responsibility. In this scenario, being completely honest with operational management about unfavorable audit results exemplifies the principle of integrity.
The Institute of Internal Auditors (IIA) "Code of Ethics", which details the principles and expectations for the professional practice of internal auditing, including integrity as a key principle.
NEW QUESTION # 290
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