Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 26

According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?

A. Outline expectations for communicating the results of all aspects of the internal audit activity.

B. Declare the internal audit activity’s accountability for safeguarding assets and confidentiality.

C. Document the chief audit executive’s (CAE's) reporting line

D. Document agreement between the CAE and the individual to whom the CAE reports

Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?

A. Reviewing the number of anonymous hotline allegations against employee complaints.

B. Surveying employees to determine whether they are aware of the hotline.

C. Benchmarking the average time to investigate hotline complaints.

D. Tracking the number of hotline allegations per total number of employees.

Which of the following is a legitimate role for the internal audit activity in the organization's risk management process'?

A. Championing the establishment of a risk management framework

B. Creating and implementing new risk management processes

C. Maintaining sole responsibility for risk management within the organization

D. Setting the risk appetite of the organization

During an assurance engagement internal auditors interview operational management to gather and evaluate information. Which approach is most important for internal auditors to be able to listen effectively to interviewees in the given situation?

A. Make an audio recording of the interview

B. Interrupt with questions during unclear statements

C. Express interest by asking follow-up questions

D. Avoid periods of silence

A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?

A. Independent assessments.

B. Continuous monitoring.

C. Business continuity and backups.

D. Organization wide objectives.

Which of the following should be part of the internal audit activity's duties?

A. Actively reporting to the governing body.

B. Providing risk management frameworks.

C. Assisting management in developing processes and controls to manage risks and issues.

D. Identifying and mitigating significant risks to the organization.

Which of the following would be addressed in the internal audit charter?

A. Expertise requirements for internal auditors

B. Functional and administrative reporting lines for the chief audit executive

C. Audit engagements to be completed in the next fiscal year

D. Budget requirements for each engagement

The manager of the payroll department requested a review of the payroll process, but only wants the engagement to include processes related to approval of time worked. What type of activity is this?

A. Financial assurance engagement.

B. Operational consulting engagement.

C. Compliance assurance engagement.

D. Risk management consulting engagement.

Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?

A. Internal auditors have shown they have the freedom to carry out their responsibilities.

B. Internal auditors have demonstrated the skills needed to carry out the audit engagement.

C. Internal auditors have strictly followed a formal audit process in conducting their work.

D. Internal auditors have demonstrated an unbiased mental attitude.

An organization is in the process of hiring a new chief audit executive (CAE). Which of the following can the potential candidates expect to be a part of the recruiting process or in place when the CAE is hired?

A. There are checks to determine the existence of any potential conflict of interest.

B. The CAE reports functionally to the highest level of management, the CEO.

C. The CAE’s compensation depends on the performance of the organizational departments.

D. Hiring and termination of the CAE is dependent on the decision of senior executives.