Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 21

Which of the following indicates an appropriate disclosure of a potential nonconformance with the Standards?

A. An external assessment of the internal audit activity was last performed six years ago.

B. The internal audit activity has been in existence for four years but has not performed an external assessment.

C. An internal assessment is not performed every year.

D. The internal audit activity has been in existence for two years and has documented only an internal assessment.

After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the accounts payable department. Which of the following is the IIA Code of Ethics principle that the auditor upheld?

A. Independence.

B. Confidentiality.

C. Objectivity.

D. Competency

A chief audit executive (CAE) has been asked by the board to evaluate the effectiveness of ethical programs created by management. Which of the following would be the most appropriate action for the CAE to take?

A. Compare the design of the organization's ethical programs with best practices.

B. Verify that a code of conduct and related policies exist and are communicated.

C. Use employee surveys to assess whether ethical programs are achieving desired outcomes.

D. Compare the cost of the ethical programs with the achieved outcomes.

An internal audit team analyzed the organization's value-at-risk model during an assurance engagement and suggested several useful improvements. Management was impressed by the internal audit team’s work and requested additional actions. Which of the following requested actions would impact internal audit independence most severely if fulfilled?

A. Assess the effectiveness of the model at least semi-annually.

B. Modify model inputs and suggest courses of action based on outcomes.

C. Employ acquired experience to test other models used by the company.

D. Validate whether model outputs serve the purpose stated by the model.

Which of the following would be considered a primary control to reduce the risk associated with setting up duplicate vendors?

A. Receipt of a signed and approved vendor setup form.

B. Segregation of duties between setting up vendors and making vendor payments.

C. System validation and edit checks on vendor identification number

D. A vendor setup policy and procedure.

Which of the following is (he most effective way any organization can ensure proper governance over its internal controls?

A. By adopting the best practices of similar organizations in the industry.

B. By adjusting their internal control framework as business practices evolve.

C. By introducing the universally accepted COSO internal control framework.

D. By encouraging the internal audit activity to provide training on internal controls.

In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?

A. Conformance with the Standards.

B. Nonconformance with the Standards

C. Unable to determine conformance with the Standards.

D. Partial conformance with the Standards

Which of the following would provide the best support for internal auditors to meet their continuing professional development requirements?

A. Access to online internal audit and business skills courses.

B. Records of self-assessment reports completed by the internal audit staff.

C. Cosourcing arrangements with external providers on specific engagements.

D. Performance reviews comparing internal auditors' achievements against specified goals.

With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?

A. The scope and frequency of both internal and external quality assessments.

B. The list of audit engagements that will be assessed during the year.

C. The number and qualifications of internal audit staff members assigned to perform internal assessments during the year.

D. The compensation structure of the qualified assessment team.

Which of the following best describes a consulting engagement rather than an assurance engagement?

A. Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.

B. The chief financial officer asks for the internal auditor's opinion regarding whether the new accounting pronouncements were properly and comprehensively adopted.

C. An internal auditor is assigned to assess whether a proposed new initiative to convert a customer service system would be cost-effective.

D. Senior management asks the internal audit activity to review compliance with customer data security regulations.