Free Practice IIA IIA-CIA-Part1-3P Exam Questions 2025

Stay ahead with 100% Free CIA Exam Part One: Essentials of Internal Auditing IIA-CIA-Part1-3P Dumps Practice Questions

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Total 951 Questions | Updated On: Apr 23, 2025

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Question 1

In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:

A : The audit committee has requested assurance on the treasury department's compliance with a new policy on the use of financial instruments.

B : Treasury management has not instituted any risk management policies.

C : Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

D : The external auditors have indicated some difficulties in obtaining account confirmations.

Answer: D

Question 2

A financial services organization requested that the chief audit executive (CAE) undertake a consulting engagement on value for money over investments in major applications. The CAE accepts the engagement request despite the fact that the internal audit activity lacks requisite expertise. Which of the following principles of The IIA's Code of Ethics is relevant in this situation?

A : Integrity.

B : Objectivity.

C : Confidentiality.

D : Competency.

Answer: D

Question 3

A computer system automatically locks a user's account after three unsuccessful attempts to log on.

Which type of control does this scenario represent?

A : Corrective control.

B : Preventive control.

C : Detective control.

D : Compensating control.

Answer: B

Question 4

The results of an internal control questionnaire revealed that all investment activity exceeding $10, 000 must be approved by the assistant treasurer. A sample of these transactions with a five-percent acceptable error rate found that 98 of the 100 items tested included the assistant treasurer's approval. Based on this data, the auditor should:

A : Confirm all investment activity with the firm's broker since errors in approval had occurred.

B : Decide not to perform further testing of investment authorizations.

C : Contact the corporate finance department to verify all of the investments held.

D : Perform an analytical review of investment transactions in comparison with prior years to identify significant fluctuations.

Answer: B

Question 5

Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

A : To evaluate an organization's governance processes for making strategic and operational decisions, internal auditors should review the organization's policies and processes related to staff compensation.

B : To determine how an organization provides oversight of its risk management and control activities, internal auditors should review board meeting minutes and the board policy manual.

C : To assess how an organization promotes ethics and values, both internally and among its external business partners, internal auditors should review the organization's related objectives, programs, and activities.

D : To evaluate how an organization ensures effective performance management and accountability, internal auditors should review previously conducted risk assessments

Answer: B

Page: 1 / 191

Total 951 Questions | Updated On: Apr 23, 2025

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