CIA Exam Part 1 - Practice Exam Prep
CIA EXAM PART 1 - PRACTICE EXAM PREP NEWEST 2026/2027
ACTUAL EXAM COMPLETE 160 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
During an external quality assessment, the outside review team determines that
internal auditors were unable to comply with a particular standard during a
specific audit. The internal auditors noted the noncompliance issue in their final
engagement communications but still claimed that their work was conducted in
accordance with the Standards. How does this situation impact the internal audit
activity's use of the statement "Conforms with the International Standards for the
Professional Practice of Internal Auditing"?
A) No impact on use of statement
B) necessitates more frequent external assessments
C) disclosure to sernior mgmt and the board is required before statement is used
D) it negates the use of the statement - Correct Answer-A) No impact on use of
statement
An organization's operations department generates timely and relevant
information on the product mix so the sales department can set sales goals. The
actual product mix is also used to support relevant internal controls, such as to
verify that the total of all products in the mix matches the initial production plan
in the aggregate. What COSO Internal Control—Integrated Framework component
is this addressing?
1|Page
, CIA Exam Part 1 - Practice Exam Prep
A) Monitoring
B) Control Environment
C) Information and communication
D) Control activities - Correct Answer-C) Information and communication
Which of the following is the most likely to be a legitimate red flag during an
internal audit?
A) Uncollected accounts are written off only after a lengthy but predictable period
of time
B) Buyers are heard complaining that they are not allowed to receive purchase
orders for expenditures.
C) A manager comments that the department has been told by senior
management to improve performance or expect salary cuts and terminations
D) Large orders for related expenses are all located on the same form even though
this requires a higher level of approval. - Correct Answer-C) A manager comments
that the department has been told by senior management to improve
performance or expect salary cuts and terminations
An organization is affected by a costly stockout after a supplier fails to deliver a
key component on time. The supplier says the reason for the stockout is that they
operate with little or no inventory themselves. Which of the following would be
the most cost-effective method of preventing this issue?
A) establishing an ERM framework at the supplier
B) Developing the component materials in-house
2|Page
, CIA Exam Part 1 - Practice Exam Prep
C) Communicating the organization's risk appetite and risk tolerance to the
supplier
D) Keeping a large supply of the supplier's component materials on hand - Correct
Answer-C) Communicating the organization's risk appetite and risk tolerance to
the supplier
An organization is changing to a system that incorporates quality throughout the
process. This is very different from its years of dependence on quality control at
the end of the process. This is a
A) structural change
B) organizational change
C) cultural change
D) product change - Correct Answer-C) cultural change
While performing an operations audit in a supplier's wholesale outlets, an internal
auditor comments favorably on a calendar provided free to favored customers
illustrated with the organization's products. The department manager offers the
auditor several calendars to keep and distribute in the auditor's office. Which of
the following responses best reflects the Standard's views of objectivity in this
case?
A) The auditor should refuse the gift and warn the client against any future
attempts to curry favor with the internal audit activity.
B) The auditor may accept the gift - no required disclosure.
C) the auditor must refuse the gift and report the offer to the audit committee
3|Page
, CIA Exam Part 1 - Practice Exam Prep
D) The auditor may accept the gift but must immediately disclose the fact to the
audit committee. - Correct Answer-B) The auditor may accept the gift - no
required disclosure
A consumer appliance manufacturer realizes that a specific part made by a supply
chain partner may be faulty on a popular appliance. It decides that it will provide
the replacement part for free to just those customers who report that the
appliance is malfunctioning in a particular way. Doing just this will keep the
organization in full compliance with the laws and regulations of the countries in
which it sells the item, since this is not a life-threatening situation. This decision
can affect corporate social responsibility (CSR) primarily as it relates to what type
of risk?
A) reporting risk
B) compliance risk
C) operational risk
D) supply chain partner risk - Correct Answer-C) operational risk
Which of the following best describes an event that would be placed in the low
impact, high likelihood area of a risk heat map?
A) petty cash is kept in a high traffic area, and the organization doesn't use an
imprest account system.
B) Employees could find a way to bypass the automated controls over web surfing
and thus waste time.
C) Downsizing consolidates the check signing and check authorization functions in
the controller job role.
4|Page
CIA EXAM PART 1 - PRACTICE EXAM PREP NEWEST 2026/2027
ACTUAL EXAM COMPLETE 160 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
During an external quality assessment, the outside review team determines that
internal auditors were unable to comply with a particular standard during a
specific audit. The internal auditors noted the noncompliance issue in their final
engagement communications but still claimed that their work was conducted in
accordance with the Standards. How does this situation impact the internal audit
activity's use of the statement "Conforms with the International Standards for the
Professional Practice of Internal Auditing"?
A) No impact on use of statement
B) necessitates more frequent external assessments
C) disclosure to sernior mgmt and the board is required before statement is used
D) it negates the use of the statement - Correct Answer-A) No impact on use of
statement
An organization's operations department generates timely and relevant
information on the product mix so the sales department can set sales goals. The
actual product mix is also used to support relevant internal controls, such as to
verify that the total of all products in the mix matches the initial production plan
in the aggregate. What COSO Internal Control—Integrated Framework component
is this addressing?
1|Page
, CIA Exam Part 1 - Practice Exam Prep
A) Monitoring
B) Control Environment
C) Information and communication
D) Control activities - Correct Answer-C) Information and communication
Which of the following is the most likely to be a legitimate red flag during an
internal audit?
A) Uncollected accounts are written off only after a lengthy but predictable period
of time
B) Buyers are heard complaining that they are not allowed to receive purchase
orders for expenditures.
C) A manager comments that the department has been told by senior
management to improve performance or expect salary cuts and terminations
D) Large orders for related expenses are all located on the same form even though
this requires a higher level of approval. - Correct Answer-C) A manager comments
that the department has been told by senior management to improve
performance or expect salary cuts and terminations
An organization is affected by a costly stockout after a supplier fails to deliver a
key component on time. The supplier says the reason for the stockout is that they
operate with little or no inventory themselves. Which of the following would be
the most cost-effective method of preventing this issue?
A) establishing an ERM framework at the supplier
B) Developing the component materials in-house
2|Page
, CIA Exam Part 1 - Practice Exam Prep
C) Communicating the organization's risk appetite and risk tolerance to the
supplier
D) Keeping a large supply of the supplier's component materials on hand - Correct
Answer-C) Communicating the organization's risk appetite and risk tolerance to
the supplier
An organization is changing to a system that incorporates quality throughout the
process. This is very different from its years of dependence on quality control at
the end of the process. This is a
A) structural change
B) organizational change
C) cultural change
D) product change - Correct Answer-C) cultural change
While performing an operations audit in a supplier's wholesale outlets, an internal
auditor comments favorably on a calendar provided free to favored customers
illustrated with the organization's products. The department manager offers the
auditor several calendars to keep and distribute in the auditor's office. Which of
the following responses best reflects the Standard's views of objectivity in this
case?
A) The auditor should refuse the gift and warn the client against any future
attempts to curry favor with the internal audit activity.
B) The auditor may accept the gift - no required disclosure.
C) the auditor must refuse the gift and report the offer to the audit committee
3|Page
, CIA Exam Part 1 - Practice Exam Prep
D) The auditor may accept the gift but must immediately disclose the fact to the
audit committee. - Correct Answer-B) The auditor may accept the gift - no
required disclosure
A consumer appliance manufacturer realizes that a specific part made by a supply
chain partner may be faulty on a popular appliance. It decides that it will provide
the replacement part for free to just those customers who report that the
appliance is malfunctioning in a particular way. Doing just this will keep the
organization in full compliance with the laws and regulations of the countries in
which it sells the item, since this is not a life-threatening situation. This decision
can affect corporate social responsibility (CSR) primarily as it relates to what type
of risk?
A) reporting risk
B) compliance risk
C) operational risk
D) supply chain partner risk - Correct Answer-C) operational risk
Which of the following best describes an event that would be placed in the low
impact, high likelihood area of a risk heat map?
A) petty cash is kept in a high traffic area, and the organization doesn't use an
imprest account system.
B) Employees could find a way to bypass the automated controls over web surfing
and thus waste time.
C) Downsizing consolidates the check signing and check authorization functions in
the controller job role.
4|Page
