Free IIA IIA-CIA-Part1 Practice Questions 2026 - Page 6

Which of the following is true regarding the use of a formal risk management framework?

1. It facilitates a methodical approach to risk mitigation.

2. It defines and standardizes the terminology used in risk communication.

3. It establishes the risk tolerance levels to be accommodated in the strategy.

4. It facilitates the alignment of risk mitigation strategies with management priorities.

A. 1. 2. and 3.

B. 1.2. and 4.

C. 1.3. and 4.

D. 2. 3, and 4.

An organization employs ongoing monitoring and is considering implementing periodic evaluations to assess the continuing effectiveness of its risk management process. Which of the following statements Is true with regard to such periodic evaluations?

A. Periodic evaluations are considered to be less objective than ongoing monitoring.

B. Periodic evaluations can be more effective than ongoing monitoring.

C. Periodic evaluation frequency may depend on the results of ongoing monitoring.

D. Periodic evaluations frequently identify problems more quickly than ongoing monitoring.

Which of the following situations presents the lowest risk of impairing an internal audit activity's independence?

A. Senior management has the authority to terminate the chief audit executive

B. Senior management has control over the internal audit activity's budget

C. Senior management provides feedback on the scope of the internal audit plan.

D. Senior management limits the internal audit activity's access to the board

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?

A. Periodic reinforcement of the internal audit activity's code of ethics disclosure practices.

B. External assessments of the internal audit activity every five years.

C. Audit committee review of every engagement report at the conclusion of the audit.

D. Internal audit charter approved by the board.

Which of the following is the best example of a computer forensic audit activity?

A. An internal auditor compared vendor addresses to employee home addresses.

B. An internal auditor used analytical software to trace all disbursements processed on weekends.

C. An internal auditor tried to circumvent the logical access controls of the purchasing system.

D. An internal auditor recovered emails of an employee who was suspected of fraudulent activities

According to IIA guidance which of the following correctly describes the standard risk treatments outlined in the process element approach of the framework for risk management?

A. Risk avoidance risk sharing application of controls, risk application.

B. Risk avoidance risk identification application of controls risk acceptance.

C. Risk identification risk assessment risk avoidance risk monitoring

D. Risk identification risk assessment application of controls risk acceptance

Once an organization's risks are identified, what would be the next step to ensure resources are properly allocated to manage those risks?

A. Risk responses must be selected.

B. Risks must be assessed.

C. The risk universe must be established.

D. Risk responses must be aligned.

Which of the following statements is true regarding control activities?

A. Control activities are carried out by first-line and second-line functions to mitigate risks.

B. Control activities are implemented by internal auditors to mitigate risks to an acceptable level.

C. Control activities provide the foundation for the organization to establish its risk appetite.

D. Control activities are a precondition to setting risk tolerance levels.

Which of the following is the most appropriate reason for a chief audit executive to conduct an external assessment more frequently than five years?

A. Significant changes in the organization's accounting policies or procedures would warrant timely analysis and feedback.

B. More frequent external assessments can serve as an equivalent substitute for internal assessments.

C. The parent organization's internal audit activity agreed to perform biennial reciprocal external assessments to provide greater assurance at a reduced cost.

D. A change in senior management or internal audit leadership may change expectations and commitment to conformance.

Which of the following best describes the type of organizational culture known as adaptability culture'?

A. A results-oriented culture that values competitiveness and personal initiative

B. A culture that emerges in quick-response and high-risk decision-making environments

C. A culture that is characterized by low involvement with environmental and health issues

D. A culture that places high value on participation and meeting the needs of employees.