Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 4

Which of the following scenarios best illustrates the Fraud Triangle component known as "perceived opportunity"?

A. Substantial bonuses are awarded if financial targets are met.

B. Duties are not properly segregated.

C. Employees may perceive favoritism and feel overlooked and resentful.

D. Bonuses may not be paid this year.

The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?

A. The internal audit charter does not identify which audit services are outsourced

B. The internal audit charter has not been reviewed by the legal department

C. The internal audit charter has not been approved by the board within the past year

D. The internal audit charter does not describe the authority of the internal audit activity

According to NA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

A. To enable Triple Bottom Line reporting capability.

B. To facilitate the conduct of risk assessment.

C. To achieve and maintain sustainable development.

D. To fulfill regulatory and compliance requirements.

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

A. The risk of collusion between parties.

B. The risk of falsified reconciliations.

C. The risk of low-liquidity inventory.

D. The risk of damages to the inventory.

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A. Working conditions.

B. Employees' families.

C. Marketplace competition.

D. Shareholders and investors

In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

A. It A new internal audit activity was formed four years ago. An external assessment was never performed, but successive internal assessments were performed and support the conclusion that the internal audit activity conforms with the Standards

B. An internal self-assessment completed yesterday found that the internal audit activity did not conform with the Standards when carrying out its work. However, the preceding independent external assessment supports the conclusion that the internal audit activity conforms with the Standards.

C. To reduce costs, the CAE excluded the use of external assessors from the internal audit activity's quality assurance and improvement program for the past seven years.However, the CAE concluded that the internal audit activity conforms with the Standards because all internal assessments over the period have supported this conclusion.

D. The results of the last external assessment of the internal audit activity, performed a little over five years ago, indicated that the internal audit activity conforms with the Standards. The most recent internal assessment performed within the past year also indicates conformance.

Which type(s) of assessments in an internal audit activity’s quality assurance and improvement program requires ongoing monitoring to evaluate internal audit activity's efficiency and effectiveness?

A. Neither internal nor external assessment

B. internal assessment

C. Both internal and external assessment

D. External assessment

According to IIA guidance, which of the following is an appropriate role for the internal audit activity?

A. Coaching management in responding to risks.

B. Implementing risk responses on management's behalf.

C. Imposing risk management processes.

D. Setting the risk appetite.

According to IIA guidance, which of the following statements is true regarding due professional care?

A. Internal auditors must exercise due professional care to Insure that all significant risks will be identified,

B. Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor

C. Due professional care requires the internal auditor to conduct extensive examinations and verifications to ensure fraud does not exist,

D. Due professional care is displayed during a consulting engagement when the internal auditor focuses on potential benefits of the engagement rather than the cost.

The organization's internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

A. Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team.

B. Perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter

C. Use an internal audit charter template from another organization that operates within the same industry.

D. Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved.