Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 12

Which of the following fraud schemes is often an off-book fraud*?

A. Payroll fraud

B. Disbursement fraud

C. Corruption

D. Information misrepresentation

Which of the following techniques should an internal auditor use in order to conduct an effective interview?

A. Use technical language to establish credibility with the employee being interviewed

B. Avoid straightforward questions to make the person being interviewed think before answering

C. Prepare the next question while the interviewee is responding to demonstrate preparedness

D. Appear confident but not arrogant during the interview to show professionalism

What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?

A. Develop preventive and detective controls

B. Identify potential fraud scenarios

C. Assess the impact and likelihood of fraud risks

D. Determine fraud risk responses

Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

A. Accommodation.

B. Reaction.

C. Defense.

D. Proaction.

Senior management has requested that the internal audit activity review and amend policies where necessary when auditing the purchasing department. To which of the following would the chief audit executive most likely give primary consideration when responding to this request?

A. Auditor competency.

B. Internal audit independence.

C. Auditor objectivity.

D. Engagement scope.

Which of the following best describes the role of internal control frameworks?

A. They outline specific internal controls for an organization to implement to ensure business objectives will be achieved.

B. They provide guidance related to internal control design and implementation to assist with the evaluation and benchmarking of business practices.

C. They serve as a list of appropriate internal controls for auditors to ensure an organization is using best practices.

D. They serve as a template for identifying standardized best practices in effective risk management across industries and countries.

Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity’s independence?

A. Description of internal audit activity's responsibilities

B. Definition of internal auditing

C. Statement of internal audit activity's authority

D. Description of internal audit activity's reporting structure

Which of the following statements is true regarding occupational fraud?

A. An employee who diverts the organization's purchases for personal use is demonstrating asset misappropriation

B. An employee who intentionally omits negative information in the financial statement disclosures is demonstrating an example of corruption

C. An employee who made an error in estimating losses may have committed fraud even if the error was not intentional

D. An employee who creates a denial of service in the organization’s computer systems is committing asset misappropriation

An organization is considering purchasing a new banking software system and has asked the internal audit activity to evaluate the system. An internal auditor assigned to perform the engagement worked at the software company two years ago and is familiar with the system's design strengths and weaknesses. Which of the following is true regarding impairment to the auditor's objectivity?

A. This situation does not necessitate any action related to the auditor's objectivity.

B. The auditor should decline to perform the audit because personal conflicts of interest are likely.

C. The auditor must disclose to the chief audit executive that this situation may impair her objectivity.

D. The auditor can provide only consulting services, not assurance.

Which of the following statements is true regarding management's use of judgement to design, implement, and conduct internal control?

A. The use of judgment enhances management's ability to make better decisions about internal control, but cannot guarantee perfect outcomes.

B. Introducing judgment generally diminishes management's ability to make good decisions about internal control.

C. It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.

D. It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together