Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 10

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.

Which of the following scenarios demonstrates nonconformance with the Standards?

A. An internal auditor failed to expand the engagement and include managements preferences when determining the scope of an upcoming assurance engagement.

B. An internal audit activity lacks the skills need to perform a high-risk security engagement included on the annual audit plan.

C. A chief audit executive fated to perform a risk assessment prior to preparing the audit plan

D. An internal audit activity has existed for two years and has not undergone external quality assessment

According to IIA guidance, which of the following corporate social responsibility {CSR) evaluation activities may be performed by the internal audit activity?

1. Consult on CSR program design and implementation

2. Serve as an advisor on CSR governance and risk management.

3. Review third parties for contractual compliance with CSR terms.

4. Identify and mitigate risks to help meet the CSR program objectives.

A. 1,2, and 3.

B. 1,2, and 4.

C. 1, 3, and 4.

D. 2, 3, and 4

Which of the following is an example of an entity-level control pertaining to the finance area of an organization'?

A. Key account reconciliation such as bank reconciliation

B. Segregation of duties between posting and reviewing journal entnes

C. A signing authority matrix for spending approvals

D. The establishment of a finance and audit committee

Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?

A description of their job responsibilities,

A. A non-disclosure agreement.

B. An annual declaration of commitment to

C. The IIA s Code of Ethics.

D. The internal audit charter.