Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 2

During a monthly internal audit staff meeting, the chief audit executive (CAE) decided to reinforce the importance of internal audit staff being objective in their work. Which of the following examples would be most appropriate for the CAE to include as part of the meeting presentation?

A. Statistical sampling techniques should always be used to pull unbiased sampling for testing.

B. Fieldwork completed by internal auditors should be appropriately reviewed.

C. Internal auditors should avoid using the lunch room simultaneously with audit clients.

D. During the audit review period, there should be no nonaudit dialogues with the audit client.

Which of the following best demonstrates organizational independence of the internal audit activity?

A. The chief audit executive (CAE) reports functionally to the CEO.

B. The CAE's compensation is approved by the chief financial officer.

C. The CAE's appointment Is determined by the CEO

D. The CAE reports administratively to the chief operating officer.

Which of the following best demonstrates conformance with IIA standards related to continuing professional development?

A. Retaining evidence of training in the form of continuing education credits

B. Seeking guidance regarding internal audit best practices from The IIA

C. Retaining supervisory reviews conducted on the basis of the development plan

D. Giving consideration to certain areas of specialization as part of development planning

Which of the following is a typical characteristic of an organization's risk management framework?

A. Risk tolerance may or may not align with risk appetite depending on whether the assessment is quantitative or qualitative

B. Risk is assessed on both an inherent and a residual basis

C. The framework addresses four organizational objective categories strategic, historical, operational, and investment

D. External risks and internal opportunities are omitted from the risk assessment scope

Which of the following best describes the risk contained in an initial public offering for a new stock?

A. Residual risk.

B. Net risk.

C. Inherent risk.

D. Underlying risk.

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. Proceed with addressing the error and report any corrections to the engagement supervisor during the scheduled exit meeting

B. Issue the audit report to senior management on schedule but include a disclaimer about the error

C. Proceed with the scheduled closing of the engagement without consideration of the identified error

D. Inform the engagement supervisor of the error and allow the supervisor to determine the appropriate action to take

Which of the following best describes a responsibility of the board of directors with regard to risk management throughout the organization?

A. Monitor the organization's overall risk activities in relation to its risk appetite and other risk criteria.

B. Guide the integration of risk management with other business planning and management activities.

C. Review the portfolio of risk of the organization in relation to its risk appetite.

D. Assume responsibility for the effectiveness and success of the risk management framework

Which of the following statements is true regarding an organization's code of ethics?

A. It should be written with primary consideration given to using a rule-based approach.

B. It should be of two variations: one applicable internally and one applicable for third parties.

C. Its operational effectiveness cannot be tested using traditional audit and rating systems such as maturity models.

D. It should require an annual attestation of compliance with the code of conduct by all employees.

Which of the following best demonstrates that the internal audit activity is using due professional care?

A. The internal audit activity reports directly to the board on the engagements it performs.

B. Internal auditors undertake the necessary training to complete their audit work.

C. The completion of engagements is based on the assumption that fraudulent activities may exist.

D. Internal auditors consider the use of technology-based audit and other data analysts techniques

With regard to IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.

B. Evaluate the organization’s governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization’s risk appetite.

C. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.

D. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks