CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
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.
D
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.
C. A person with a duty to act who doess not act violated an ethical, if not a legal, obligation.
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.
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.
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.
D. Violation of Rules of Conduct 3.2
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.
C. This is a meter of ongoing judgment for the board and should not be codified in the charter.
,CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
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.
B. Guiding the ethical conduct of internal auditors. This is not standard.
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.
C.
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
A.
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
C.
A primary purpose of establishing a code of conduct within a professional organization is to
A. Reduce the likelihood that members of the profession will be sued for substandard work.
B. Ensure that all members of the profession perform at approximately the same level of competence.
C. Promote an ethical culture among professionals who service others.
D. Require members of the profession to exhibit loyalty in all matter pertaining to the affairs of their organization.
C.
An accounting association established a code of ethics for all members. What is one of the association's primary
purposes of establishing the code of ethics?
A. The outline criteria for professional behavior to maintain standards of integrity and objectivity
B. To establish standards to follow for effective accounting practice.
C. To provide a framework within which accounting policies could be effectively developed and executed.
D. The outline criteria that can be used in conducting interviews of potential new accountants
A
In analyzing the differences between two recently merged businesses, the chief audit executive of Organization A
notes that it has a formal code of ethic and Organization B does not. The code of ethics covers such things as
,CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
purchase agreements, relationships with vendors, and other issues. Its purpose is to guide individual behavior
within the firm. Which of the following statements regarding the existence of the code of ethics in A can be
logically inferred?
I. A exhibits a higher standard of ethical behavior than does B.
II. A has established objective criteria by which an individual's actions can be evaluated.
III. The absence of a formal code of ethics in B would prevent a successful review of ethical behavior in that
organization.
A. I and II.
B. II only.
C. III only.
D. II and III.
B.
A review of an organization's code of conduct revealed that it contained comprehensive guidelines designed to
aspire high levels of ethical behavior. The review also revealed that employees were knowledgeable of it
provisions. However, some employees still did not comply with the code. What element should a code of conduct
contain to enhance its effectiveness?
A. Periodic review and acknowledgment by all employees.
B. Employee involvement in its development.
C. Public knowledge of its contents and purpose.
D. Provisions for disciplinary action in the event of violations.
D.
The IIA Rules of Conduct set forth in The IIA's Code of Ethics
A. Describe behavior norms expected of internal auditor.
B. Are guidelines to assist internal auditors in dealing with engagement clients.
C. Are interpreted by the Principles.
D. Apply only to particular conduct specifically mentioned.
A.
Today's internal auditor will often encounter a wide range of potential ethical dilemmas, not all of which are
explicitly addressed by The IIA's Code of Ethics. If the internal auditor encounters such a dilemma, the internal
auditor should always
A. Seek counsel from an independent attorney to determine the personal consequences of potential actions.
B. Apply and uphold the principles embodied in The IIA's Code of Ethics.
C. Seek the counsel of the board before deciding on an action.
D. Act consistently with the code of ethics adopted by the organization even if such action is not consistent with
The IIA's Code of Ethics.
B
In complying with The IIA's Code of Ethics, an internal auditor should
A. Use individual judgment in the application of the principles set forth in the Code.
B. Respect and contribute to the objectives of the organization even if it is engaged in illegal activities.
, CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
C. Go beyond the limitation of personal technical skills to advance the interest of the organization.
D. Primarily apply the competency principle in establishing trust.
A
An internal auditor who encounters an ethical dilemma not explicitly addressed by The IIA's Code of Ethics should
always
A. Seek counsel from an independent attorney to determine the personal consequences of potential actions.
B. Take action consistent with the principles embodied in The IIA's Code of Ethics.
C. Seek the counsel of the audit committee before deciding on an action.
D. Act consistently with the employing organization's code of ethics even if such action would not be consistent
with The IIA's Code of Ethics.
B
Which of the following is permissible under The IIA's Code of Ethics?
A. In response to a subpoena, an auditor appeared in a court of law and disclosed confidential, audit-related
information that could potentially damage the auditor's organization.
B. An auditor used audit-related information in a decision to buy stock issued by the employer corporations.
C. After praising an employee in a recent audit engagement communication, an auditor accepted a gift from the
employee.
D. An auditor did not report significant observations about illegal activity to the board because management
indicated that it would resolve the issue.
A
The IIA's Code of Ethics requires internal auditors to perform their work with
A. Honesty, diligence, and responsibility.
B. Timeliness, sobriety, and clarity.
C. Knowledge, skills, and competencies.
D. Punctuality, objectivity, and responsibility.
A
A CIA is working in a noninternal-auditing position as the director of purchasing. The CIA signed a contract to
procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the
contract, the supplier presented the CIA with a gift of significant monetary value. Which of the following
statements regarding the acceptance of the gift is true?
A. Acceptance of the gift is prohibited only if it is not customary.
B. Acceptance of the gift violates The IIA's Code of Ethics and is prohibited for a CIA.
C. Because the CIA is no longer acting as an internal auditor, acceptance of the gift is governed only by the
organization's code of conduct.
D. Because the contract was signed before the gift was offered, acceptance of the gift does not violate either, The
IIA's Code of Ethics or the organization's code of conduct.
B
The chief audit executive (CAE) has been appointed to a committee to evaluate the appointment of the external
auditors. The engagement partner for the external accounting firm wants the CAE to join her for a week of hunting
at her private lodge. The CAE should
2026\2027.
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.
D
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.
C. A person with a duty to act who doess not act violated an ethical, if not a legal, obligation.
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.
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.
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.
D. Violation of Rules of Conduct 3.2
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.
C. This is a meter of ongoing judgment for the board and should not be codified in the charter.
,CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
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.
B. Guiding the ethical conduct of internal auditors. This is not standard.
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.
C.
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
A.
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
C.
A primary purpose of establishing a code of conduct within a professional organization is to
A. Reduce the likelihood that members of the profession will be sued for substandard work.
B. Ensure that all members of the profession perform at approximately the same level of competence.
C. Promote an ethical culture among professionals who service others.
D. Require members of the profession to exhibit loyalty in all matter pertaining to the affairs of their organization.
C.
An accounting association established a code of ethics for all members. What is one of the association's primary
purposes of establishing the code of ethics?
A. The outline criteria for professional behavior to maintain standards of integrity and objectivity
B. To establish standards to follow for effective accounting practice.
C. To provide a framework within which accounting policies could be effectively developed and executed.
D. The outline criteria that can be used in conducting interviews of potential new accountants
A
In analyzing the differences between two recently merged businesses, the chief audit executive of Organization A
notes that it has a formal code of ethic and Organization B does not. The code of ethics covers such things as
,CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
purchase agreements, relationships with vendors, and other issues. Its purpose is to guide individual behavior
within the firm. Which of the following statements regarding the existence of the code of ethics in A can be
logically inferred?
I. A exhibits a higher standard of ethical behavior than does B.
II. A has established objective criteria by which an individual's actions can be evaluated.
III. The absence of a formal code of ethics in B would prevent a successful review of ethical behavior in that
organization.
A. I and II.
B. II only.
C. III only.
D. II and III.
B.
A review of an organization's code of conduct revealed that it contained comprehensive guidelines designed to
aspire high levels of ethical behavior. The review also revealed that employees were knowledgeable of it
provisions. However, some employees still did not comply with the code. What element should a code of conduct
contain to enhance its effectiveness?
A. Periodic review and acknowledgment by all employees.
B. Employee involvement in its development.
C. Public knowledge of its contents and purpose.
D. Provisions for disciplinary action in the event of violations.
D.
The IIA Rules of Conduct set forth in The IIA's Code of Ethics
A. Describe behavior norms expected of internal auditor.
B. Are guidelines to assist internal auditors in dealing with engagement clients.
C. Are interpreted by the Principles.
D. Apply only to particular conduct specifically mentioned.
A.
Today's internal auditor will often encounter a wide range of potential ethical dilemmas, not all of which are
explicitly addressed by The IIA's Code of Ethics. If the internal auditor encounters such a dilemma, the internal
auditor should always
A. Seek counsel from an independent attorney to determine the personal consequences of potential actions.
B. Apply and uphold the principles embodied in The IIA's Code of Ethics.
C. Seek the counsel of the board before deciding on an action.
D. Act consistently with the code of ethics adopted by the organization even if such action is not consistent with
The IIA's Code of Ethics.
B
In complying with The IIA's Code of Ethics, an internal auditor should
A. Use individual judgment in the application of the principles set forth in the Code.
B. Respect and contribute to the objectives of the organization even if it is engaged in illegal activities.
, CIA PART 1 MULTIPLE CHOICE.FINAL EXAM TEST
2026\2027.
C. Go beyond the limitation of personal technical skills to advance the interest of the organization.
D. Primarily apply the competency principle in establishing trust.
A
An internal auditor who encounters an ethical dilemma not explicitly addressed by The IIA's Code of Ethics should
always
A. Seek counsel from an independent attorney to determine the personal consequences of potential actions.
B. Take action consistent with the principles embodied in The IIA's Code of Ethics.
C. Seek the counsel of the audit committee before deciding on an action.
D. Act consistently with the employing organization's code of ethics even if such action would not be consistent
with The IIA's Code of Ethics.
B
Which of the following is permissible under The IIA's Code of Ethics?
A. In response to a subpoena, an auditor appeared in a court of law and disclosed confidential, audit-related
information that could potentially damage the auditor's organization.
B. An auditor used audit-related information in a decision to buy stock issued by the employer corporations.
C. After praising an employee in a recent audit engagement communication, an auditor accepted a gift from the
employee.
D. An auditor did not report significant observations about illegal activity to the board because management
indicated that it would resolve the issue.
A
The IIA's Code of Ethics requires internal auditors to perform their work with
A. Honesty, diligence, and responsibility.
B. Timeliness, sobriety, and clarity.
C. Knowledge, skills, and competencies.
D. Punctuality, objectivity, and responsibility.
A
A CIA is working in a noninternal-auditing position as the director of purchasing. The CIA signed a contract to
procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the
contract, the supplier presented the CIA with a gift of significant monetary value. Which of the following
statements regarding the acceptance of the gift is true?
A. Acceptance of the gift is prohibited only if it is not customary.
B. Acceptance of the gift violates The IIA's Code of Ethics and is prohibited for a CIA.
C. Because the CIA is no longer acting as an internal auditor, acceptance of the gift is governed only by the
organization's code of conduct.
D. Because the contract was signed before the gift was offered, acceptance of the gift does not violate either, The
IIA's Code of Ethics or the organization's code of conduct.
B
The chief audit executive (CAE) has been appointed to a committee to evaluate the appointment of the external
auditors. The engagement partner for the external accounting firm wants the CAE to join her for a week of hunting
at her private lodge. The CAE should
