[Jun 07, 2026] IIA-CIA-Part1 Exam Brain Dumps - Study Notes and Theory
Pass IIA IIA-CIA-Part1 Test Practice Test Questions Exam Dumps
NEW QUESTION # 394
Management is installing security cameras to identify unauthorized physical access to the organization's warehouse. This is an example of which of the following types of controls?
- A. Primary controls.
- B. Detective controls.
- C. Key controls.
- D. Preventive controls
Answer: B
NEW QUESTION # 395
Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred. According to the Standards, which of the following principles did the CAE violate?
- A. Proficiency.
- B. Individual objectivity.
- C. Organizational independence.
- D. Due professional care.
Answer: D
NEW QUESTION # 396
An internal auditor failed to identify transactions between the parent organization and a subsidiary. What is the most likely reason for the failure?
- A. The auditor's fieldwork was not properly supervised.
- B. The auditor lacked professional skepticism.
- C. The auditor lacked an understanding of the organization.
- D. The auditor misunderstood the audit objectives.
Answer: C
Explanation:
The most likely reason for an internal auditor failing to identify transactions between the parent organization and a subsidiary is a lack of understanding of the organization. Understanding the organizational structure, including relationships between parent and subsidiary entities, is crucial for identifying and evaluating intercompany transactions. A thorough knowledge of the organization's operations, financial arrangements, and business processes enables auditors to recognize and properly assess such transactions during their audit engagements.
The Institute of Internal Auditors (IIA) Standards, specifically Standard 1210 - Proficiency.
IIA's International Professional Practices Framework (IPPF).
"Internal Auditing: Assurance & Advisory Services" by IIA, Chapter on Understanding the Business and Audit Planning.
NEW QUESTION # 397
Which of the following processes should be included in a benchmarking activity?
I. Identify key measures.
II. Collect data on performances and practices.
III. Identify opportunities for improvement.
- A. II and III only
- B. I and III only
- C. I, II, and III.
- D. II only
Answer: C
NEW QUESTION # 398
Which of the following conditions is the most likely indicator of fraud?
- A. Commissions are paid based on verified increases to sales.
- B. Lower earnings occur during the industry's down cycle.
- C. Departmental reports are consistently issued in an untimely manner.
- D. A manager regularly assumes subordinates' duties.
Answer: D
NEW QUESTION # 399
During an audit of the purchasing department, an internal auditor identifies significant issues that could affect the organization's financial reporting. Management disagrees with the audit results.
Which of the following responses best demonstrates the internal auditor has the necessary competencies related to professional judgement and conflict management?
- A. The auditor bypasses management, discusses the results with the board, and seeks the board's input on how best to address the recommendations.
- B. The auditor meets with management to discuss the results and obtain a better understanding of the specific concerns.
- C. The auditor consults with other members of the audit team, and together they develop alternative recommendations that management may be more likely to accept.
- D. The auditor maintains his convictions and continues to proceed with the review process despite management's concerns related to the results.
Answer: B
NEW QUESTION # 400
According to IIA guidance, which of the following best describes how risks are measured?
- A. Likelihood and probability.
- B. Impact and relevance.
- C. Likelihood and impact.
- D. Velocity and rate of occurrence.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION # 401
The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.
Which of the following strategies best fulfills the requirements of the Standards regarding these audits?
- A. The scope of store operations audits should exclude compliance.
- B. A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.
- C. Store operations audits can be fully executed with appropriate disclosure to the board.
- D. Store operations audits should be performed by an external service provider.
Answer: D
NEW QUESTION # 402
An internal auditor conducted a surprise inventory count at a warehouse of a small subsidiary. By the end of the count, it became apparent that a few items from several categories were missing.
The warehouse manager explained that he took those items for personal needs, and he said that he would provide information about other employees' wrongdoings to avoid being reported. The auditor agreed not to report the issue, which ultimately enabled her to uncover more significant losses. Which of the following statements is true regarding this situation?
- A. This scenario demonstrates an impairment to audit independence.
- B. The auditor acted in accordance with the Definition of Internal Auditing, adding value to the organization.
- C. The auditor appears to lack personal integrity.
- D. The auditor demonstrated due professional care and cost-benefit considerations.
Answer: A
NEW QUESTION # 403
Which of the following actions best demonstrates an internal auditor exercising due professional care?
- A. Using technology and data analysis techniques for efficiency
- B. Establishing audit objectives, performing audit tests, and implementing missing controls
- C. Testing an entire population, even when a sample would suffice
- D. Enhancing knowledge, skills, and other competencies through professional development
Answer: A
NEW QUESTION # 404
An internal auditor performed a risk assessment and concluded that the controls over access privileges to a bank account were appropriate. Later, the auditor learned that a contractor was using a shared password provided by an authorized user of the account. Which of the following statements best describes the auditor's application of due professional care?
- A. Due professional care was not exercised because the auditor failed to identify all the significant risks during the risk assessment.
- B. Due professional care was not exercised because the auditor failed to conduct interviews to obtain testimonial evidence of possible password sharing
- C. Due professional care was not exercised because the residual risk from the possibility of authorized users sharing their passwords was not considered.
- D. Due professional care was exercised, despite the auditor's failure to identify the significant risk.
Answer: C
Explanation:
Due professional care was not exercised because the residual risk from the possibility of authorized users sharing their passwords was not considered. Identifying and assessing risks associated with shared access and improper handling of credentials is crucial in a risk assessment. The failure to consider such risks indicates a lack of thoroughness in the auditor's evaluation of control effectiveness.
IIA Standard 1300: Quality Assurance and Improvement Program
NEW QUESTION # 405
An internal audit team is reviewing the effectiveness of an organization's climate change initiative.
It has been brought to the engagement supervisor's attention that an auditor on the team has criticized the organization's initiative on social media. The auditor's social media posts could raise concerns about the internal auditor's objectivity during the engagement. Which of the following best describes the threat to objectivity in this situation?
- A. Economic interest.
- B. Advocacy.
- C. Intimidation.
- D. Cultural bias.
Answer: B
NEW QUESTION # 406
Which of the following describes a key characteristic related to effective organizational communication?
- A. A culture of integrity and transparency.
- B. A well-designed system of internal controls.
- C. Comprehensive supervisory and verification procedures.
- D. Unique operating environments with varying complexity.
Answer: B
NEW QUESTION # 407
An internal auditor wants to use ratio analysis to examine efficiencies in an organization's accounting department. Which of the following statements identifies a weakness of ratio analysis that should be considered by the auditor?
- A. It requires a substantial investment of money.
- B. It utilizes financial information that may not have been checked for validity and reliability.
- C. It is only helpful for making comparisons across industries.
- D. Computer software is required in order to draw conclusions from the data.
Answer: B
NEW QUESTION # 408
Which of the following is true for consulting engagements'?
- A. The internal audit activity must ensure management actions have been effectively implemented or risk accepted
- B. The nature of consulting services does not have to be in the internal audit charter
- C. Risks identified from the engagement must be considered when evaluating the organization's risk management processes
- D. A work program for the engagement is not required but may be developed
Answer: D
Explanation:
In consulting engagements, according to the IIA's Standards, a work program is not required but may be developed. This allows internal auditors flexibility to design an approach that best fits the nature of the consulting engagement.References: The IIA's International Standards for the Professional Practice of Internal Auditing (Standards), particularly the standards related to consulting activities.
NEW QUESTION # 409
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