Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 25

Which documents would help a forensic auditor identify instances of collusion between an employee and vendor to defraud the organization?

A. Email correspondence.

B. Payment request forms.

C. Vendor invoices.

D. Bank statements.

During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud. To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?

A. Increase the sample size to be tested, ensuring a thorough review of the payroll records.

B. Advise the chief audit executive of the clerk's assertion, despite the lack of supporting evidence.

C. Ask the clerk to provide a list of any suspicious new employee names on the payroll.

D. Investigate the matter further to understand precisely how many payroll records were affected.

Which of the following best describes the differences between internal auditors and external auditors?

A. External auditors are concerned about misstatements in the organization's financial statements, while internal auditors are concerned about fraudulent activities that could impact the organization’s financial statements

B. External auditors are required to hold an accounting designation and are responsible for continuing their education, while internal auditors are required to hold an internal audit designation.

C. External auditors focus on the accuracy and understandability of financial statements, while internal auditors help the organization accomplish its objectives by evaluating and improving the effectiveness of the control process.

D. External auditors are not employees of the organization, while internal auditors are employees who have in-depth knowledge of the business, making their opinion more reliable to the board and senior management.

Six months after an employee was transferred to the internal audit activity his former operating manager requested that he return to assist a project team with the evaluation of a new pricing module for the organization’s online ordering system According to IIA guidance which of the following statements is true?

A. The auditor cannot be assigned to this project, as it has been fewer than 12 months since he was transferred from that department.

B. Another internal auditor should be appointed to the engagement to preserve the independence of the internal audit activity

C. The auditor cannot participate in the assignment, as providing an opinion would impair his objectivity

D. The auditor may participate on the project, as the nature of the assignment is consulting

During fieldwork, an internal auditor located a significant internal control issue. Without identifying the origins of the issue, the auditor concluded the engagement and included the issue in the final audit report. To enhance audit quality, which of the following skills should the internal auditor improve?

A. Business acumen.

B. Critical thinking.

C. Communication.

D. Audit report writing.

Which of the following best describes the risk created when a manager bypasses organizational policies and procedures in order to meet an organization’s objective?

A. Accountability/reward risk.

B. Accountability/reward risk.

C. Communication failure risk.

D. Knowledge/skills risk

According to IIA guidance which of the following statements is true regarding the internal audit charier?

A. The charier should be revised and re-approved whenever a new chief audit executive (CAE) is appointed or at the request of the board

B. The charier should be re-approved every five years, in conjunction with the external quality assessment

C. The charier can be revised at the discretion of the CAE whenever 4 is determined that its content no longer supports the achievement of objectives

D. The charier should be reviewed and resubmitted for board approval annually together with the audit plan

During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company's expenses policy. The auditor who discovered the issue considered it a potential fraudulent transaction and informed the chief financial officer (CFO). The CFO dismissed the concern because he did not understand the data analytics test that was performed and the transaction was of a low value. Given this situation, which skills or competencies should this internal auditor seek to improve?

A. Skills in evaluating the risk of fraud.

B. Knowledge of key IT risks and controls

C. Soft skills such as communication and negotiation.

D. Knowledge and understanding of the company's expenses policy

Which of the following is a legitimate requirement for an internal audit activity’s quality assurance and improvement program (QAIP)?

A. Quality assessments should be performed by individuals with sufficient knowledge of the internal audit practices

B. External quality assessments should be conducted every seven years

C. All quality assessments should be either conducted or validated by an independent assessment team

D. The results of the QAIP should be communicated to shareholders annually

What is the primary purpose of The IIA's Code of Ethics?

A. Communicate specific activities appropriate to the performance of internal auditing

B. Promote ethical culture within corporations and other business organizations

C. Establish mandatory standards of competence for the practice of internal auditing

D. Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing