IIA CIA PART 1 EXAM |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Assessing individual objectivity of internal auditors is the responsibility of
A. The chief executive officer.
B. The board.
C. The audit committee.
D. The chief audit executive.
CORRECT ANSWER
D
Question 2
An internal auditor working for a chemical manufacturer believed that toxic waste was
being dumped in violation of the law. Out of loyalty to the organization, no information
regarding the dumping was collected. The internal auditor
A. Did not violate the Code of Ethics. Loyalty to the employer in all matters in required.
B. Did not violate the Code of Ethics. Conclusive information about wrongdoing was not
gathered.
C. Violated the Code of Ethics by knowingly becoming a party to an illegal act.
D. Violated the Code of Ethics by failing to protect thee well-being of the general public.
CORRECT ANSWER
C. A person with a duty to act who doess not act violated an ethical, if not a legal,
obligation.
1
,Question 3
An internal auditing team has made observations and recommendations that should
significantly improve a division's operating efficiency. Out of appreciation of this work, and
because it is the holiday season, the division manager present to in-charge internal auditor
with a gift of moderate value. Which of the following best describes the action prescribed
by The IIA's Code of Ethics?
A. Accept it, regardless of other circumstances, because its value is insignificant.
B. Not accept it prior to submission of the final engagement communication.
C. Not accept it if he is presumed to impair the internal auditor's judgment.
D. Not accept it, regardless of other circumstances, because its value is significant.
CORRECT ANSWER
C. According to Rule of Conduct 2.2, the decision whether to accept a gift should be
based on the potentional impairment of the auditor's judgement.
Question 4
Which of the following most likely constitutes a violation of The IIA's Code of Ethics by an
internal auditor?
A. Discussing at a trade convention the organization's controls over its computer networks.
B. Deleting sensitive information from a final engagement communication at the request of
senior management.
C. Investigating executive expense reports based completely on rumors of padding.
D. Purchasing stock in a target organization after overhearing an executive discussion of
possible acquisition.
CORRECT ANSWER
D. Violation of Rules of Conduct 3.2
Question 5
2
,A charter is one of the more important factors positively affecting the internal audit
activity's independence. Which of the following is least likely to be part of the charter?
A. Access to records within the organization.
B. The scope of internal audit activities.
C. The length of tenure of the chief audit executive.
D. Access to personnel within the organization.
CORRECT ANSWER
C. This is a meter of ongoing judgment for the board and should not be codified in the
charter.
Question 6
The purposes of the Standards include all of the following except
A. Establishing the basis for the measurement of internal audit performance.
B. Guiding the ethical conduct of internal auditors.
C. Stating basic principles that represent the practice of internal auditing.
D. Fostering improved organizational processes and operations.
CORRECT ANSWER
B. Guiding the ethical conduct of internal auditors. This is not standard.
Question 7
Which Standards expand upon the other categories of Standards?
A. Performance Standards
B. Attribute Standards
C. Implementation Standards.
D. All of the choices are correct.
CORRECT ANSWER
3
, C.
Question 8
The purpose of the internal audit activity can be best described as
A. Adding value to the organization.
B. Providing additional assurance regarding fir presentation of financial statements.
C. Expressing an opinion on the adequate design and functioning of the system of internal
control.
D. Assuring the absence of any fraud that would materially affect the financial statements
CORRECT ANSWER
A.
Question 9
The Standards consist of three types of Standards. Which standards apply to the
characteristics of providers of internal auditing services?
A. Implementation Standards.
B. Performance Standards
C. Attribute Standards
D. Independence Standards
CORRECT ANSWER
C.
Question 10
A primary purpose of establishing a code of conduct within a professional organization is
to
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VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Assessing individual objectivity of internal auditors is the responsibility of
A. The chief executive officer.
B. The board.
C. The audit committee.
D. The chief audit executive.
CORRECT ANSWER
D
Question 2
An internal auditor working for a chemical manufacturer believed that toxic waste was
being dumped in violation of the law. Out of loyalty to the organization, no information
regarding the dumping was collected. The internal auditor
A. Did not violate the Code of Ethics. Loyalty to the employer in all matters in required.
B. Did not violate the Code of Ethics. Conclusive information about wrongdoing was not
gathered.
C. Violated the Code of Ethics by knowingly becoming a party to an illegal act.
D. Violated the Code of Ethics by failing to protect thee well-being of the general public.
CORRECT ANSWER
C. A person with a duty to act who doess not act violated an ethical, if not a legal,
obligation.
1
,Question 3
An internal auditing team has made observations and recommendations that should
significantly improve a division's operating efficiency. Out of appreciation of this work, and
because it is the holiday season, the division manager present to in-charge internal auditor
with a gift of moderate value. Which of the following best describes the action prescribed
by The IIA's Code of Ethics?
A. Accept it, regardless of other circumstances, because its value is insignificant.
B. Not accept it prior to submission of the final engagement communication.
C. Not accept it if he is presumed to impair the internal auditor's judgment.
D. Not accept it, regardless of other circumstances, because its value is significant.
CORRECT ANSWER
C. According to Rule of Conduct 2.2, the decision whether to accept a gift should be
based on the potentional impairment of the auditor's judgement.
Question 4
Which of the following most likely constitutes a violation of The IIA's Code of Ethics by an
internal auditor?
A. Discussing at a trade convention the organization's controls over its computer networks.
B. Deleting sensitive information from a final engagement communication at the request of
senior management.
C. Investigating executive expense reports based completely on rumors of padding.
D. Purchasing stock in a target organization after overhearing an executive discussion of
possible acquisition.
CORRECT ANSWER
D. Violation of Rules of Conduct 3.2
Question 5
2
,A charter is one of the more important factors positively affecting the internal audit
activity's independence. Which of the following is least likely to be part of the charter?
A. Access to records within the organization.
B. The scope of internal audit activities.
C. The length of tenure of the chief audit executive.
D. Access to personnel within the organization.
CORRECT ANSWER
C. This is a meter of ongoing judgment for the board and should not be codified in the
charter.
Question 6
The purposes of the Standards include all of the following except
A. Establishing the basis for the measurement of internal audit performance.
B. Guiding the ethical conduct of internal auditors.
C. Stating basic principles that represent the practice of internal auditing.
D. Fostering improved organizational processes and operations.
CORRECT ANSWER
B. Guiding the ethical conduct of internal auditors. This is not standard.
Question 7
Which Standards expand upon the other categories of Standards?
A. Performance Standards
B. Attribute Standards
C. Implementation Standards.
D. All of the choices are correct.
CORRECT ANSWER
3
, C.
Question 8
The purpose of the internal audit activity can be best described as
A. Adding value to the organization.
B. Providing additional assurance regarding fir presentation of financial statements.
C. Expressing an opinion on the adequate design and functioning of the system of internal
control.
D. Assuring the absence of any fraud that would materially affect the financial statements
CORRECT ANSWER
A.
Question 9
The Standards consist of three types of Standards. Which standards apply to the
characteristics of providers of internal auditing services?
A. Implementation Standards.
B. Performance Standards
C. Attribute Standards
D. Independence Standards
CORRECT ANSWER
C.
Question 10
A primary purpose of establishing a code of conduct within a professional organization is
to
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