Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 19

IT management requires all employees in the IT department to attend annual training on the department’s mission values and key performance measures This activity is designed to prevent which of the following conditions?

A. Knowledge’s kills gap

B. Monitoring gap

C. Accountability/reward failure

D. Communication failure

In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

A. The CAE would need to procure external services to deliver the internal audit assurance program.

B. There is no expertise within the internal audit team for detecting and investigating fraud.

C. There is no expertise within the internal audit team for auditing an IT engagement.

D. There is no available expertise on the internal audit team to perform a consulting engagement

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

A. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

B. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

C. The assigned internal auditor must not assume management responsibilities while performing the engagement

D. The assigned internal auditor must maintain objectivity while performing the engagement.

For a high-risk observation, which is the best approach to follow when management takes an aggressive, uncompromising position in opposition to the internal audit activity?

A. The parties should work together to develop a mutually beneficial solution.

B. The internal audit activity should share the observation with other business units to get their opinions.

C. The internal audit activity should discuss with senior management, and if still not resolved, discuss with the board.

D. The internal audit activity should accommodate management's position, since the relationship is more important than the fight.

Which of the following would best serve to deter unethical behavior and encourage internal auditors to be objective in their work?

A. A requirement that internal auditors undergo objectivity training periodically

B. Periodic communications reminding internal auditors of Standards requirements

C. A review of the final audit report by the audit committee

D. Ongoing monitoring and periodic internal quality assessments

According to IIA guidance, which of the following statements is true of assurance services provided by the internal audit activity?

A. Internal auditors cannot assess an operation for which they were responsible within the previous year.

B. Management of the area under review must agree with the engagement objectives, scope, and techniques.

C. The engagement results will vary in form and content depending upon the needs and wishes of the engagement client.

D. The only parties involved in the engagement are the internal auditor and management of the area under review.

Which of the following statements is true regarding external quality assessments?

A. They can be performed by self-assessment with independent external validation, but they must be performed every three years.

B. When a new chief audit executive (CAE) is appointed, an external quality assessment should be undertaken during the CAE’s first year of office.

C. An external quality assessment must be conducted at least once every five years by a qualified, independent assessor or assessment team.

D. An external assessment by a qualified professional from outside of the organization can be performed in place of an internal assessment.

When issuing his department’s performance report, a sales director in an insurance company knowingly fails to correct the reserves for unearned income that resulted from cancellations of policy subscriptions. This could be considered which of the following types of fraud?

A. Asset misappropriation

B. Skimming

C. Disbursement fraud

D. Information misrepresentation

A new internal auditor was recently recruited to the internal audit activity from the organization's finance department. What is likely to be the chief audit executive’s greatest concern regarding assigning the new auditor to upcoming audits in the finance department?

A. The time it may take the new auditor to complete the assignment and report the findings to management.

B. The qualifications of the new auditor and whether the auditor's business knowledge is relevant to the assignment.

C. The potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.

D. The knowledge the new auditor may have of control weaknesses in the finance department.

In which of the following scenarios is the internal auditor in conformance with The IIA's Code of Ethics and the Standards?

A. The auditor testifies in front of a jury about an organization's fraudulent financial practices after receiving a subpoena

B. Management has agreed to remedy a significant control deficiency, so the auditor excludes the deficiency from the engagement report

C. The chief audit executive declines an assurance engagement in IT because the internal audit activity is not proficient in IT

D. The auditor communicates an audit opinion on fraud risk during an audit engagement’s preliminary fraud risk assessment