2025 100% Free IIA-CIA-Part1 Daily Practice Exam With 775 Questions [Q29-Q50]

Posted On October 3, 2025

2025 100% Free IIA-CIA-Part1 Daily Practice Exam With 775 Questions

IIA-CIA-Part1 exam torrent IIA study guide

IIA IIA-CIA-Part1 (Essentials of Internal Auditing) Exam is a certification exam designed for individuals who are interested in pursuing a career in internal auditing or are already working in the field. IIA-CIA-Part1 exam is created and administered by the Institute of Internal Auditors (IIA), a global professional association dedicated to providing education, certification, and guidance for internal auditors.

QUESTION 29
An audit of the quality control department is being planned.
Which of the following would least likely be used in the preparation of a preliminary survey questionnaire?

An analysis of quality control documents.

The permanent audit file.

The prior audit report.

Management’s charter for the quality control department.

QUESTION 30
Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

The contractor’s certification that it has not incurred any waste or inefficiencies.

A walk-through of the contractor’s manufacturing and development facilities.

An examination of the nature of contract expenses incurred.

A comparison of contract expenses with those of similar projects.

QUESTION 31
A sales clerk received cash from a customer and pocketed the proceeds. He hid the act by not recording the cash receipt in the system. This is an example of which of the following types of fraud?

Skimming.

Larceny.

Lapping.

Kiting.

QUESTION 32
During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?

Compensating controls from other processes were not present.

Redundant controls are not in place to enhance well designed controls.

Entity level controls are informal and not consistently enforced.

Process controls were not developed from an existing key control checklist.

QUESTION 33
Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

Appoint the chief audit executive as a member of the board.

Adopt written policies and procedures for the internal audit activity, approved by the board.

Ensure the chief audit executive reports administratively to the audit committee.

Establish the internal audit activity’s position within the organization in an audit charter.

QUESTION 34
An internal auditor wants to compare her organization’s governance processes to those of a well-known governance model. Which of the following approaches would the auditor take for this purpose?

Perform a gap analysis to assess me differences between the approaches

Assess the governance processes using computerized modeling techniques

identify any differences between the processes using a variance analysis

Benchmark the governance processes using a capability maturity modal

QUESTION 35
An internal auditor is testing, on a sample basis, whether invoices paid between January 1 and December
31 are supported by appropriately approved purchase orders. Over 25, 000 invoices were paid during the fiscal year, which runs from the first of April to the end of March. The auditor sets the acceptable risk of assessing control risk too low at 5% and the tolerable deviation rate at 5%. The internal auditor consults the previous audit and sets the expected population deviation rate at 1%. Sample size (77) is selected from a table and rounded up to 80. No sample deviations were found. The upper deviation limit was 3.7%.
Which of the following statements represents a valid conclusion regarding this information?

I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%.
Results indicated that the sample size was too small, as no sample deviations were found.

I am 95% confident that the actual population deviation rate is 3.7%. Since this is less than the tolerable deviation rate, quantitative attribute testing results indicate that the control is effective.

I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%.
The quantitative attribute testing results indicate that the control is effective.

I am 95% confident that the true, but unknown, population deviation rate is less than or equal to 3.7%.
The quantitative attribute testing results indicate that the control is not effective.

QUESTION 36
Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?

Assessing the risk of noncompliance with laws and regulations

Following the policies as prescribed by the internal audit manual.

Advising management of the area under review on how to mitigate internal control risks.

Conducting the engagement on the presupposition that fraud exists.

Applying due professional care in planning an assurance engagement includes assessing the risks involved in the engagement area. An assessment of the risk of noncompliance with laws and regulations directly addresses the potential legal and regulatory exposures that could significantly impact the organization. This risk assessment helps ensure that the audit plan is appropriately focused and aligned with key risks, demonstrating due professional care.References: IIA standards on planning, which stipulate that due professional care includes an appropriate risk assessment.

QUESTION 37
During an interview with a data-entry clerk in the human resources department, an internal auditor recognizes a potentially significant weakness with a database system used to track employee performance ratings. Which of the following actions should the auditor take after discovering the weakness?

Schedule a series of follow-up interviews with the data-entry clerk.

Avoid either directly or indirectly confronting the data-entry clerk about the system weakness.

Question the data-entry clerk indirectly to help obtain more factual information about the weakness.

Immediately document the weakness and write a report to the data-entry clerk’s superior.

QUESTION 38
An internal auditor has suspicions that some fictitious vendors have been created in the organization’s computer system. Which of the following would be the best technique to detect this fraud?

Review for duplicate invoice numbers, duplicate dates, and duplicate amounts

Run checks to find matches between vendor and employee addresses

Check for recurring requests for refunds where invoices are paid twice

Review for unexplained increases in inventory

The best technique to detect fictitious vendors in the organization’s computer system is to run checks to find matches between vendor and employee addresses. This method is effective because fictitious vendors often have addresses that match those of employees creating them. This kind of analysis targets the direct linkage between fraudulent activities and internal entities, which is a common red flag in vendor fraud scenarios.References: Association of Certified Fraud Examiners (ACFE) – Techniques for Fraud Detection

QUESTION 39
Which of the following could increase risks to the organization’s control environment?

Strong board of directors oversight.

Incentive-based compensation structures.

Lower than average employee turnover.

Implementation of a fraud hotline.

Incentive-based compensation structures can increase risks to the organization’s control environment by potentially motivating undesirable behaviors such as taking undue risks or manipulating results to meet targets that trigger compensation rewards. This can undermine the integrity of controls and reporting within the organization.
Governance and risk management literature, including studies and guidance on compensation structures and their impact on organizational behavior and risk.

QUESTION 40
To ensure that due professional care has been taken during an audit engagement, an internal auditor should always:

Ensure that all financial information related to the engagement is included in the audit plan and examined for irregularities.

Document all audit tests completely.

Consider the possibility of noncompliance or irregularities at all times during an engagement.

Notify the audit committee of any noncompliance or irregularity discovered during an engagement.

Section: Volume B

QUESTION 41
According to IIA guidance, which of the following threats to objectivity is described as familiarity’?

An internal auditor is a close friend or relative of the manager or an employee of the audit client

An internal auditor has a long-term business relationship with the audit client.

An internal auditor has an economic stake in the performance of the organization

An internal auditor is exposed to or perceived to be exposed to pressures from external parties

QUESTION 42
Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

Accommodation.

Reaction.

Defense.

Proaction.

QUESTION 43
Which of the following should a general internal auditor be able to characterize as an IT-related risk?

Computer servers are in a room that is accessible to all employees,

An IT architect avoids taking vacations and sharing his workload with coworkers,

Hours billed by IT developers exceed 24 hours daily.

Audit logs are lacking in a system that processes personal data.

QUESTION 44
The chief audit executive is asked to review a new anti-money laundering policy and provide feedback. Which is the most appropriate response?

Offer to rewrite portions of the policy that contain errors.

Seek approval from legal counsel.

Perform the review, as requested.

Decline to perform the review, to avoid a conflict of interest.

QUESTION 45
An internal auditor assigned to a supplier management process engagement reviews the risk assessment with the process owner The auditor inquires about the risk response for potentially engaging unqualified third-party service providers The process owner responds that due diligence checks are undertaken to make sure that third parties possess requisite competencies before they are engaged Which of the following risk management techniques is the process owner using?

Risk avoidance

Risk reduction

Risk sharing

Risk acceptance

The process owner is using risk reduction as the risk management technique. By undertaking due diligence checks to ensure that third-party service providers possess the requisite competencies before engagement, the process owner is actively working to minimize the risks associated with engaging unqualified third parties.
This approach reduces the likelihood and impact of the risk materializing.References: Risk management methodologies

QUESTION 46
An organization that outsources much of its internal audit work to an external service
provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?

External industry associate that performed a similar review for a supplier of the organization.

A team from an independent entity that previously employed the chief audit executive of the organization.

A team under the direction of the organization’s chief audit executive with validation by a former manager of the internal audit activity.

The same external service provider because of its competency and experience with the organization.

QUESTION 47
Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large organization?

The internal assessment results should be discussed once every five years,

The rating conclusions and the impact from results of the external assessment should be explained,

The results of the external assessment should be discussed every seven years,

The qualifications and independence of the internal assessment team should be discussed

The chief audit executive should consider explaining the rating conclusions and the impact of the results from the external assessment when communicating the results of the quality assurance and improvement program to the board. This is crucial as it directly relates to the effectiveness and efficiency of the internal audit function, providing key insights into the internal audit’s performance and its compliance with established standards and practices.References: IIA’s International Standards for the Professional Practice of Internal Auditing.

QUESTION 48
In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

It creates apprehension about the audit engagement.

It involves the engagement client’s supervisory personnel in the audit.

It is an uneconomical approach to obtaining information.

It is only useful for audits of distant locations.

QUESTION 49
An organization receives the most value from an internal audit activity’s enterprise-wide risk assessment when the auditor:

Focuses primarily on enterprise-level risks.

Considers activities at all levels of the organization.

Reviews special projects and new initiatives.

Validates supporting financial and operational data.

Section: Volume B

QUESTION 50
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

Pressure or incentive.

Opportunity.

Rationalization.

Commitment.

Loading …