Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 23

Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

A. Internal auditors may conduct a financial effectiveness engagement in a business unit at any point after being transferred from that area.

B. Internal auditors may conclude that a business unit's current control environment is adequate and effective if the review of the prior year's workpapers and audit report supports that conclusion.

C. Internal auditors may conduct an engagement in a business unit at any point after providing a training workshop in that area.

D. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results.

Which of the following actions is the internal audit activity best positioned within the organization to perform?

A. Determine organizational risk tolerances

B. Monitor the organization's risk mitigations

C. Determine the likelihood and impact of risks

D. Advise the board on risk management issues

Which combination of strategies would provide the best evaluation of the effectiveness of the organization's risk assessment activity?

1. Interview staff at various levels to discuss the organization's objectives, significant risks, and risk appetite.

2. Review board meeting minutes to determine whether the significant risks identified are communicated timely to the board.

3. Evaluate the adequacy and timeliness of management remediation actions by reviewing the control design, testing the controls, and reviewing monitoring procedures.

4. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.

A. 1 and 2 only.

B. 1.2, and 3 only.

C. 1.3. and 4 only.

D. 3 and 4 only.

An internal auditor in a newly established internal audit activity identifies many control weaknesses and raises a number of high-priority recommendations in her first few audit engagements. The internal auditor is concerned that there seems to be a poor understanding by management of risk and control. Which of the following is the most likely reason for this?

A. Poor performance by individual operational managers in the areas audited.

B. Unrealistic expectations by the internal audit activity on the quality of risk management and control.

C. A lack of an effective organizational framework for risk management and control.

D. A failure by the internal audit activity to identify and manage the organization's risks.

Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?

A. The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,

B. The auditor decided not to notify her supervisor that her brother-in-law was responsible for the project the auditor was expected to evaluate.

C. The auditor asked the audit client to copy requested files to her personal unencrypted memory stick because it was faster and more convenient.

D. The auditor was assigned to analyze the organization's incentive program and spent long hours reviewing other employees’ bonuses,

Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?

A. Internal audit designs and implements the organization's controls to help manage risk.

B. Internal audit sets the organization's risk tolerance and promotes awareness throughout the organization.

C. Internal audit assesses whether the organization's risk management processes are effective.

D. Internal audit is responsible for safeguarding the organization's assets and preventing loss from occurring.

During an assurance engagement, an internal auditor reviews a tender inviting vendors to submit bids to supply financial services software to the organization. She suspects that the tender was tailored for the bidder who eventually won the contract. What should the auditor do next?

A. Review payments made for the financial services software.

B. Confront a procurement specialist with the suspicion.

C. Submit an anonymous tip to the whistleblower hotline.

D. Analyze technical terms and conditions of the tender.

Which of the following is a key determinant used by external auditors to decide whether they can rely on work performed by the internal audit activity?

A. The auditors' independence.

B. The auditors' objectivity.

C. The auditors' integrity.

D. The auditors' confidentiality.

According to IIA guidance, which of the following statements is true regarding the internal audit activity's quality assurance and improvement program (QAIP)?

A. Internal assessments rely solely on the review of completed audit engagements for demonstrated performance

B. The chief audit executive is responsible for assessing the suitability and competence of an external assessor.

C. QAIP results must first be discussed with the board and approval obtained for distribution to senior management

D. At the board's discretion, the frequency of external assessments can exceed the fiveyear guideline

What should be the first step for a newly hired chief audit executive to build and maintain the proficiency of the internal audit activity'?

A. Incorporate the basic criteria of internal audit competency into job descriptions

B. Complete a periodic skills assessment of the internal audit activity

C. Develop a competency or skill assessment tool.

D. Perform benchmarking with competitors to learn what other firms are doing related to this topic