Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 18

According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?

A. Auditors must have an IT specialty in at least one of their organization's key information technology systems.

B. Auditors must be proficient in data analysis and computer assisted audit techniques for their organization.

C. Auditors must understand their organization's integrated test facilities and generalized audit software.

D. Auditors must understand their organization's IT governance, risk, and control processes.

Which of the following is an indicator that the organization's risk management process is effective?

A. The organization's risk appetite, mission, and objectives are clearly outlined.

B. The organization's risk management practices are assessed as mature.

C. The organization has adopted risk management frameworks and global models.

D. The organization's significant risks are identified and adequately assessed.

Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

A. Determine the organization’s overall risk appetite.

B. Establish a governance committee.

C. Delegate authority to members of senior management.

D. Identify key stakeholders and their expectations

According to IIA guidance, which of the following best describes the chief audit executive s responsibility for confirming to the board the organizational independence of the internal audit activity'?

A. The CAE must do this at least annually

B. The CAE must do this at least once every five years

C. The CAE must do this upon completion of each external quality assessment

D. The CAE should do this periodically in conjunction with a review of the internal audit charter

According to IIA guidance, which of the following statements regarding ethics is true?

A. Business ethics may vary within an organization with both domestic and foreign operations.

B. Business ethics are universal in nature and organizations across the world are expected to comply with similar standards.

C. A business ethics policy for an organization is established solely to direct the behavior and expectations of employees.

D. Business ethics of an organization must remain independent from those of suppliers, customers, and business partners.

According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?

A. Results of internal assessments need to be reported to the board at least once every five years.

B. The external assessor must present the findings from the external assessment to senior management and the board upon completion.

C. Deficiencies within the internal audit activity must be reported to the board as soon as they are noted.

D. Results of ongoing monitoring of the internal audit activity's performance must be reported to senior management and the board at least annually

According to IIA guidance which of the following statements regarding ethics is true?

A. Business ethics may vary within an organization with both domestic and foreign operations

B. Business ethics are universal n nature and organizations across the world are expected to comply with smear standards

C. A business ethics policy for an organization s established solely to direct me behavior and expectations of employees

D. Business ethics of an organization must remain independent torn those of supplier’s customers and business partners

An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

A. The inherent risk will be mitigated to a level lower than the residual risk.

B. The inherent risk will be reduced to an acceptable level.

C. The residual risk will be reduced to an acceptable level.

D. The residual risk will be eliminated

Which of the following is true with regard to an organization's risk management practices?

A. Risks represent a single point estimate

B. Each organization faces the same types of risk.

C. Risks may relate to failing to achieve positive outcomes.

D. Mitigated risks are no longer considered to be inherent.

Which of the following best describes a purpose for the internal audit charter?

A. The internal audit charter authorizes the internal audit activity's reporting structure and clearly defines the roles of each internal auditor.

B. The internal audit charter defines the roles and responsibilities of the chief audit executive, board of directors, and senior management.

C. The internal audit charter authorizes access to records, personnel, and physical properties relevant to the performance of audit engagements.

D. The internal audit charter defines the criteria by which the internal audit activity's performance will be evaluated