IIA CIA PART 3 EXAM |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
According to the International Professional Practices Framework, internal auditors should
possess which of the following skills?
i. Internal auditors should understand human relations and be skilled in dealing with people.
ii. Internal auditors should be able to recognize and evaluate the materiality and significance
of deviations from good business practices.
iii. Internal auditors should be experts on subjects such as accounting, economics,
commercial law, taxation, finance, and information technology.
iv. Internal auditors should be skilled in oral and written communication.
CORRECT ANSWER
I, II, and IV only
Question 2
To promote a positive image within an organization, a chief audit executive (CAE) planned
to conduct assurance engagements that highlighted potential costs to be saved. Negative
observations were to be omitted from engagement final communications. Which action
taken by the CAE would be considered a violation of the Standards?
i. The focus of the audit engagements was changed without modifying the charter or
consulting the audit committee.
1
,ii. Negative observations were omitted from the engagement final communications
iii. Cost savings recommendations were highlighted in the engagement final
communications.
iv. Assurance audits should address compliance, not cost savings
CORRECT ANSWER
I and II only
Question 3
Which of the following activities are designed to provide feedback on the effectiveness of
an internal audit activity?
i. Proper supervision
ii. Proper training
iii. Internal assessments
iv. External assessments
v. The attest function
CORRECT ANSWER
I, III, and IV only
Question 4
2
,A Chief Audit Executive (CAE) uses a risk assessment model to establish the annual audit
plan. Which of the following would be an appropriate action by the CAE?
i. Maintain ongoing dialogue with management and audit committee
ii. Ensure that the schedule of audit priorities remain unchanged
iii. Employ only quantitative methods to determine risk weighting
iv. Revise the risk assessment and audit priorities as warranted
CORRECT ANSWER
I and IV only
Question 5
Which of the following comments is correct regarding the assessment of risk associated
with two projects that are completing for limited audit resources?
i. Activates that are requested by the audit committee should always be considered higher
risk than those requested by managements
ii. Activities with higher dollar budgets should always be considered higher risk than those
with lower dollar budgets
iii. Risk should always be measured by the potential dollar or adverse exposure to the
organization
CORRECT ANSWER
III only
Question 6
The internal audit activity should contribute to the organization's governance process by
evaluating the processes through which:
3
, i. Ethics and values are promoted
ii. Effective organizational performance management and accountability are ensured
iii. Risk and control information is communicated
iv. Activities of the external and internal auditors and management are coordinated
CORRECT ANSWER
I, II, III and IV only
Question 7
The function of the Chief Risk Officer (CRO) is most effective when the CRO:
CORRECT ANSWER
Monitors risk as part of the enterprise risk management team
Question 8
Which of the following statements is correct regarding corporate compensation systems
and related bonuses?
i. A bonus system should be considered part of the control environment of an organization
and should be considered in formulating a report on internal control
ii. Compensation systems are not part of an organization's control system and should not be
reported as such
4
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
According to the International Professional Practices Framework, internal auditors should
possess which of the following skills?
i. Internal auditors should understand human relations and be skilled in dealing with people.
ii. Internal auditors should be able to recognize and evaluate the materiality and significance
of deviations from good business practices.
iii. Internal auditors should be experts on subjects such as accounting, economics,
commercial law, taxation, finance, and information technology.
iv. Internal auditors should be skilled in oral and written communication.
CORRECT ANSWER
I, II, and IV only
Question 2
To promote a positive image within an organization, a chief audit executive (CAE) planned
to conduct assurance engagements that highlighted potential costs to be saved. Negative
observations were to be omitted from engagement final communications. Which action
taken by the CAE would be considered a violation of the Standards?
i. The focus of the audit engagements was changed without modifying the charter or
consulting the audit committee.
1
,ii. Negative observations were omitted from the engagement final communications
iii. Cost savings recommendations were highlighted in the engagement final
communications.
iv. Assurance audits should address compliance, not cost savings
CORRECT ANSWER
I and II only
Question 3
Which of the following activities are designed to provide feedback on the effectiveness of
an internal audit activity?
i. Proper supervision
ii. Proper training
iii. Internal assessments
iv. External assessments
v. The attest function
CORRECT ANSWER
I, III, and IV only
Question 4
2
,A Chief Audit Executive (CAE) uses a risk assessment model to establish the annual audit
plan. Which of the following would be an appropriate action by the CAE?
i. Maintain ongoing dialogue with management and audit committee
ii. Ensure that the schedule of audit priorities remain unchanged
iii. Employ only quantitative methods to determine risk weighting
iv. Revise the risk assessment and audit priorities as warranted
CORRECT ANSWER
I and IV only
Question 5
Which of the following comments is correct regarding the assessment of risk associated
with two projects that are completing for limited audit resources?
i. Activates that are requested by the audit committee should always be considered higher
risk than those requested by managements
ii. Activities with higher dollar budgets should always be considered higher risk than those
with lower dollar budgets
iii. Risk should always be measured by the potential dollar or adverse exposure to the
organization
CORRECT ANSWER
III only
Question 6
The internal audit activity should contribute to the organization's governance process by
evaluating the processes through which:
3
, i. Ethics and values are promoted
ii. Effective organizational performance management and accountability are ensured
iii. Risk and control information is communicated
iv. Activities of the external and internal auditors and management are coordinated
CORRECT ANSWER
I, II, III and IV only
Question 7
The function of the Chief Risk Officer (CRO) is most effective when the CRO:
CORRECT ANSWER
Monitors risk as part of the enterprise risk management team
Question 8
Which of the following statements is correct regarding corporate compensation systems
and related bonuses?
i. A bonus system should be considered part of the control environment of an organization
and should be considered in formulating a report on internal control
ii. Compensation systems are not part of an organization's control system and should not be
reported as such
4
