IIA CIA PART 1 |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
A specific objective of an audit of an organization's expenditure cycle is to determine if all
goods paid for have been received and charged to the correct account. This objective
would address which of the following primary objectives identified in the Standards?
I. Reliability and integrity of financial and operational information.
II. Compliance with laws, regulations, and contracts.
III. Effectiveness and efficiency of operations.
IV. Safeguarding of assets.
a. I and II only
b. I and IV only
c. I, II, and IV only
d. II, III, and IV only
CORRECT ANSWER
B
Question 2
Which of the following actions would be a violations of auditor independence?
A. Continuing on an audit assignment at a division for which the auditor will soon be
responsible as the result of a promotion.
B. Reducing the scope of an engagement due to budget restrictions.
C. Participating on a task force that recommends standards of control for a new distribution
system.
D. Reviewing a purchasing agent's contract drafts before their execution.
1
, CORRECT ANSWER
A
Question 3
As part of a company-sponsored award program, an internal auditor was offered an award
of significant monetary value by a division in recognition of the cost savings that resulted
from the auditor's recommendations. According to the International Professional Practices
Framework, what is the most appropriate action for the auditor to take?
A. Accept the gift because the engagement is already concluded and the report issued.
B. Accept the award under the condition that any proceeds go to charity.
C. Inform audit management and ask for direction on whether to accept the gift.
D. Decline the gift and advise the division manager's supervisor.
CORRECT ANSWER
C
Question 4
A CIA, working as the director of purchasing, signs a contract to procure a large order from
the supplier with the best price, quality, and performance. Shortly after signing the
contract, the supplier presents the CIA with a gift of significant monetary value. Which of
the following statements regarding the acceptance of the gift is correct?
A. Acceptance of the gift would be prohibited only if it were non-customary.
B. Acceptance of the gift would violate the IIA's Code of Ethics and is prohibited for a CIA.
C. Because the CIA is not acting as an internal auditor, acceptance of the gift would be
governed only by the organization's code of conduct.
D. Because the contract was signed before the gift was offered, acceptance of the gift would
not violate either the IIA's Code of Ethics or the organization's code of
CORRECT ANSWER
B
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VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
A specific objective of an audit of an organization's expenditure cycle is to determine if all
goods paid for have been received and charged to the correct account. This objective
would address which of the following primary objectives identified in the Standards?
I. Reliability and integrity of financial and operational information.
II. Compliance with laws, regulations, and contracts.
III. Effectiveness and efficiency of operations.
IV. Safeguarding of assets.
a. I and II only
b. I and IV only
c. I, II, and IV only
d. II, III, and IV only
CORRECT ANSWER
B
Question 2
Which of the following actions would be a violations of auditor independence?
A. Continuing on an audit assignment at a division for which the auditor will soon be
responsible as the result of a promotion.
B. Reducing the scope of an engagement due to budget restrictions.
C. Participating on a task force that recommends standards of control for a new distribution
system.
D. Reviewing a purchasing agent's contract drafts before their execution.
1
, CORRECT ANSWER
A
Question 3
As part of a company-sponsored award program, an internal auditor was offered an award
of significant monetary value by a division in recognition of the cost savings that resulted
from the auditor's recommendations. According to the International Professional Practices
Framework, what is the most appropriate action for the auditor to take?
A. Accept the gift because the engagement is already concluded and the report issued.
B. Accept the award under the condition that any proceeds go to charity.
C. Inform audit management and ask for direction on whether to accept the gift.
D. Decline the gift and advise the division manager's supervisor.
CORRECT ANSWER
C
Question 4
A CIA, working as the director of purchasing, signs a contract to procure a large order from
the supplier with the best price, quality, and performance. Shortly after signing the
contract, the supplier presents the CIA with a gift of significant monetary value. Which of
the following statements regarding the acceptance of the gift is correct?
A. Acceptance of the gift would be prohibited only if it were non-customary.
B. Acceptance of the gift would violate the IIA's Code of Ethics and is prohibited for a CIA.
C. Because the CIA is not acting as an internal auditor, acceptance of the gift would be
governed only by the organization's code of conduct.
D. Because the contract was signed before the gift was offered, acceptance of the gift would
not violate either the IIA's Code of Ethics or the organization's code of
CORRECT ANSWER
B
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