IIA-CIA-Part1 Exam Questions - Real Practice Questions for Guaranteed Success

Question 1

Which of the following must be considered by the chief audit executive before writing the internal audit charter?

AInternal auditors' level of competencies and skills.

BThe manner in which the internal audit activity is viewed by the board.

CEvaluation of staff certifications and continued development.

DEffectiveness of the quality assurance and improvement program.

Correct : B

The board's perception of the internal audit activity influences the charter's development. IIA standards emphasize that the internal audit charter should reflect the board's expectations to ensure the audit function's authority and independence.

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AInternal auditors' level of competencies and skills.

BThe manner in which the internal audit activity is viewed by the board.

CEvaluation of staff certifications and continued development.

DEffectiveness of the quality assurance and improvement program.

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Question 2

Which of the following activities would breach the principles of The IIA's Code of Ethics?

AThe internal auditor is keeping personal notes from an engagement conducted on the organization's information system security for future use.

BThe internal auditor is performing an engagement of the purchasing department where he used to work five years ago.

CThe internal auditor is using information from a recent engagement to assist with a friend's business.

DThe internal auditor is discussing relevant information involving questionable vendors with a government regulatory agency.

Correct : C

Using information from an engagement to assist a friend's business violates the IIA Code of Ethics, as it breaches confidentiality and objectivity. Internal auditors must maintain impartiality and not misuse information for personal or external advantage.

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AThe internal auditor is keeping personal notes from an engagement conducted on the organization's information system security for future use.

BThe internal auditor is performing an engagement of the purchasing department where he used to work five years ago.

CThe internal auditor is using information from a recent engagement to assist with a friend's business.

DThe internal auditor is discussing relevant information involving questionable vendors with a government regulatory agency.

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Question 3

Which of the following documents most directly describes the guidelines for and importance of the objectivity of internal auditors?

AInternal audit quality assessments.

BInternal audit charter.

CInternal audit plan.

DInternal audit reporting.

Correct : B

The internal audit charter outlines the internal audit function's objectives, independence, and scope. IIA guidance specifies the charter as the foundational document defining the internal audit activity's objectivity and position within the organization.

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AInternal audit quality assessments.

BInternal audit charter.

CInternal audit plan.

DInternal audit reporting.

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Question 4

Which of the following statements is true regarding organizational independence of the internal audit activity (IAA)?

AReporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

BThe benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.

CIndependence is impaired when the scope of the IAA is subject to changes required by senior management.

DInadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.

Correct : C

IIA standards highlight that organizational independence is compromised when senior management can alter the internal audit scope. Independence ensures that internal auditors operate without influence or pressure from those they audit, critical for impartiality.

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AReporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

BThe benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.

CIndependence is impaired when the scope of the IAA is subject to changes required by senior management.

DInadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.

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Question 5

Which of the following would best preserve the organizational independence of the internal audit activity?

AThe internal audit charter is approved by the chief audit executive (CAE).

BThe CAE reports functionally to the CEO.

CThe CAE's internal audit plan is endorsed by the board.

DThe chief financial officer determines the appointment of the CAE.

Correct : C

Board endorsement of the internal audit plan strengthens organizational independence by ensuring that internal audit activities align with governance priorities rather than management's interests, in line with IIA standards.

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AThe internal audit charter is approved by the chief audit executive (CAE).

BThe CAE reports functionally to the CEO.

CThe CAE's internal audit plan is endorsed by the board.

DThe chief financial officer determines the appointment of the CAE.

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Master IIA-CIA-Part1 Exam with Reliable Practice Questions

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