CIA STUDY PRACTICE QUESTIONS AND
ANSWERS 2026/2027 LATEST UPDATE
In order to effectively elicit sensitive information from an employee during an audit
engagement, an auditor should:
A. Tell the employee a piece of information obtained from a coworker in a previous
interview.
B. Put sensitive questions at the beginning of a questionnaire to ensure that they are
answered.
C. Explain that the auditor's reputation for integrity, which is vital to the auditor's
business success, would be seriously damaged if confidentiality were breached.
D. Point out that management has given the auditor full authority to conduct this
interview. - ANSWER-C: This answer will give the interviewer confidence and that the
internal auditor can be trusted
A is incorrect because you should not share information to another EE, especially if the
information is proprietary
B is just not a good answer and there is no reason for questions to be in a certain order
D Might intimidate the interviewer and therefore no useful information will probably not
be obtained
During a routine audit of a customer service hotline, an internal auditor noticed that an
unusually high number of customer complaints pertained to payments not being applied
to the customers' accounts. Which of the following would most likely be the reason for
the high volume of complaints?
A. An ineffective customer service department.
B. Poor controls in the invoice approval processes.
C. Check tampering by an employee.
D. Submission of fraudulent expense reports. - ANSWER-C: If payments are not being
applied, a possible reason is that an EE is pocketing the payments and leaving the
customer account open
A is incorrect because it does specifically address thr reason for the customer
complaints
B is incorrect because invoice approval is not the reason for payments not being applied
,D is incorrect customers are not apart of the company
Which of the following factors would increase the confidence level in a variables
sampling plan?
I A Larger Sample Size
II A Stratified Sample
III A larger Standard deviation
A) I and II
B) I and III
C) II and III
D) I, II, and III - ANSWER-A. The confidence level has no effect on the standard
deviation. The confidence level only relates to the sample size. As such, an increase in
the confidence level increases the sample size, regardless if it is stratified or not.
B, C.D include the Standard deviation
Which of the following factors could interfere with effective problem solving by the
internal auditor
I Reacting to previous experiences with the client
II Focusing only on the most likely cause
III Correcting symptoms of problems - ANSWER-
Which of the following techniques could be used to evaluate the effectiveness of
changes to the operation of a computer help line
A. Benchmarking
B. baseline requirements
C. Walk Through
D. Quality Circles - ANSWER-B. Baseline requirements is a snapshot in time that
represents an approved set of requirements that been committed to a specific product
release. Based on this definition, this is the most likely answer
A is incorrect because there is no external thing to compare the help line to
C. A walkthrough could help evaluate the effectiveness of controls, but it should be
combined with reperformance in order to be effective
D. Quality Circles is defined as a group of workers who the same or similar work. As
such, this is not a valid answer since it does not talk about the process
At the conclusion of the audit, a report was issued to the tresurer, CFO, President, and
the Board. A follow up review was performed. The Auditor shold provide the follow up
report to which of the following
,I Treasurer
II CFO
III President
IV Board
A. I and II
B III and V
C III anf IV
D All of the above - ANSWER-D. All of the above. those that receive the report should
be provided with the additional follow up
A Client Satisfaction survey for the internal audit engagement should be asked to
assess which of the following factors
I Audit team's knowledge of the audited area
II Usefulness of audit results
III quality of management of the internal audit activity
IV Clarity of the scope and objectives of the audit engagement
A. I and II only
B. II and IV only
C. I, II, and IV only
D. I III, and IV only - ANSWER-C. A survey would ask questions regarding the quality of
management of the internal audit activity is due to the business not knowing what the
criteria for managemnet is. All other answers are applicable for a survey
Which of the following tests must an IA perform to ensure EDI transactions are received
and translated accurately
I Computerized tests to assess Transaction reasonableness and validity
II Review of log books to ensure that transactions are logged upon receipt
III Edit checks to identify unusual Transactions
IV Verification of limitations on the authourity of users to initiate specific EDI
transactions - ANSWER-I, II, and III
IV does not test accuracy, rather it tests a control
I is what i believe to be the primary test
II is a substantive procedure that tests the occurance of the transaction
III Edit checks are defined as a test that checks data to ensure validity and is used to
verify data before being processed. Under this lens, an argument can be made that this
procedure can be used to gain reasonable assurance that transactions are accurate.
Edit Checks also test completeness and accuracy
The Best reason for the increased use of oral reports to supplement written reports is
, A. Reduce the amount of testing required to support audit findings
B. Can be delivered in an informal manner without prep
C. Can be prepared using a flexible format and reduce the information included in the
written report
D. Permit auditors to counter arguments and provide additional information that the
audience may require - ANSWER-D. This is the most flexible answer and the one that
makes sense based on the other answers
A is incorrect because Oral reporting does not affect the amount of testing
B is wrong because an IA should always be prepared
C is wrong because although it can be flexible, it will not reduce the information included
in the written report. Should be consistent
What is the responsibility of the internal auditor once a fraud investigation has been
concluded?
A. Ascertain the extent to which fraud has been perpetrated
B. Notify the appropriate regualtory Agency
C. Determine if controls need to be implemented or strengthened to reduce future
vulnerability
D. Implement controls to prevent future occurrences - ANSWER-C is the most complete
answer
A. is wrong because based on the question, you are at the conclusion of the
engagement, and enough testing has been done.
B. You have no information whether if the fraud occurred or not; therefore, this is
inappropriate
D is wrong becuase internal auditors do not implement controls
In a review of EDI application using a third party provider, the auditor should do which or
all of the following
I Ensure encryption keys meet ISO standards
II Determine if an independent review of the service provider has been conducted
III Verify only public switched data networks are used by the serice provider
IV Verify that the service providers contract includes necessary clauses, such as the
right to audit - ANSWER-II and IV- the common theme for this is that these are in the
skillset of the internal auditor
III is incorrect because, based on the information, this is too specific of a question in
regards to EDI that the third party controls
I is incorrect because ISO standards may not be important for our organization and
therefore not a criteria the IA should be concerned about
ANSWERS 2026/2027 LATEST UPDATE
In order to effectively elicit sensitive information from an employee during an audit
engagement, an auditor should:
A. Tell the employee a piece of information obtained from a coworker in a previous
interview.
B. Put sensitive questions at the beginning of a questionnaire to ensure that they are
answered.
C. Explain that the auditor's reputation for integrity, which is vital to the auditor's
business success, would be seriously damaged if confidentiality were breached.
D. Point out that management has given the auditor full authority to conduct this
interview. - ANSWER-C: This answer will give the interviewer confidence and that the
internal auditor can be trusted
A is incorrect because you should not share information to another EE, especially if the
information is proprietary
B is just not a good answer and there is no reason for questions to be in a certain order
D Might intimidate the interviewer and therefore no useful information will probably not
be obtained
During a routine audit of a customer service hotline, an internal auditor noticed that an
unusually high number of customer complaints pertained to payments not being applied
to the customers' accounts. Which of the following would most likely be the reason for
the high volume of complaints?
A. An ineffective customer service department.
B. Poor controls in the invoice approval processes.
C. Check tampering by an employee.
D. Submission of fraudulent expense reports. - ANSWER-C: If payments are not being
applied, a possible reason is that an EE is pocketing the payments and leaving the
customer account open
A is incorrect because it does specifically address thr reason for the customer
complaints
B is incorrect because invoice approval is not the reason for payments not being applied
,D is incorrect customers are not apart of the company
Which of the following factors would increase the confidence level in a variables
sampling plan?
I A Larger Sample Size
II A Stratified Sample
III A larger Standard deviation
A) I and II
B) I and III
C) II and III
D) I, II, and III - ANSWER-A. The confidence level has no effect on the standard
deviation. The confidence level only relates to the sample size. As such, an increase in
the confidence level increases the sample size, regardless if it is stratified or not.
B, C.D include the Standard deviation
Which of the following factors could interfere with effective problem solving by the
internal auditor
I Reacting to previous experiences with the client
II Focusing only on the most likely cause
III Correcting symptoms of problems - ANSWER-
Which of the following techniques could be used to evaluate the effectiveness of
changes to the operation of a computer help line
A. Benchmarking
B. baseline requirements
C. Walk Through
D. Quality Circles - ANSWER-B. Baseline requirements is a snapshot in time that
represents an approved set of requirements that been committed to a specific product
release. Based on this definition, this is the most likely answer
A is incorrect because there is no external thing to compare the help line to
C. A walkthrough could help evaluate the effectiveness of controls, but it should be
combined with reperformance in order to be effective
D. Quality Circles is defined as a group of workers who the same or similar work. As
such, this is not a valid answer since it does not talk about the process
At the conclusion of the audit, a report was issued to the tresurer, CFO, President, and
the Board. A follow up review was performed. The Auditor shold provide the follow up
report to which of the following
,I Treasurer
II CFO
III President
IV Board
A. I and II
B III and V
C III anf IV
D All of the above - ANSWER-D. All of the above. those that receive the report should
be provided with the additional follow up
A Client Satisfaction survey for the internal audit engagement should be asked to
assess which of the following factors
I Audit team's knowledge of the audited area
II Usefulness of audit results
III quality of management of the internal audit activity
IV Clarity of the scope and objectives of the audit engagement
A. I and II only
B. II and IV only
C. I, II, and IV only
D. I III, and IV only - ANSWER-C. A survey would ask questions regarding the quality of
management of the internal audit activity is due to the business not knowing what the
criteria for managemnet is. All other answers are applicable for a survey
Which of the following tests must an IA perform to ensure EDI transactions are received
and translated accurately
I Computerized tests to assess Transaction reasonableness and validity
II Review of log books to ensure that transactions are logged upon receipt
III Edit checks to identify unusual Transactions
IV Verification of limitations on the authourity of users to initiate specific EDI
transactions - ANSWER-I, II, and III
IV does not test accuracy, rather it tests a control
I is what i believe to be the primary test
II is a substantive procedure that tests the occurance of the transaction
III Edit checks are defined as a test that checks data to ensure validity and is used to
verify data before being processed. Under this lens, an argument can be made that this
procedure can be used to gain reasonable assurance that transactions are accurate.
Edit Checks also test completeness and accuracy
The Best reason for the increased use of oral reports to supplement written reports is
, A. Reduce the amount of testing required to support audit findings
B. Can be delivered in an informal manner without prep
C. Can be prepared using a flexible format and reduce the information included in the
written report
D. Permit auditors to counter arguments and provide additional information that the
audience may require - ANSWER-D. This is the most flexible answer and the one that
makes sense based on the other answers
A is incorrect because Oral reporting does not affect the amount of testing
B is wrong because an IA should always be prepared
C is wrong because although it can be flexible, it will not reduce the information included
in the written report. Should be consistent
What is the responsibility of the internal auditor once a fraud investigation has been
concluded?
A. Ascertain the extent to which fraud has been perpetrated
B. Notify the appropriate regualtory Agency
C. Determine if controls need to be implemented or strengthened to reduce future
vulnerability
D. Implement controls to prevent future occurrences - ANSWER-C is the most complete
answer
A. is wrong because based on the question, you are at the conclusion of the
engagement, and enough testing has been done.
B. You have no information whether if the fraud occurred or not; therefore, this is
inappropriate
D is wrong becuase internal auditors do not implement controls
In a review of EDI application using a third party provider, the auditor should do which or
all of the following
I Ensure encryption keys meet ISO standards
II Determine if an independent review of the service provider has been conducted
III Verify only public switched data networks are used by the serice provider
IV Verify that the service providers contract includes necessary clauses, such as the
right to audit - ANSWER-II and IV- the common theme for this is that these are in the
skillset of the internal auditor
III is incorrect because, based on the information, this is too specific of a question in
regards to EDI that the third party controls
I is incorrect because ISO standards may not be important for our organization and
therefore not a criteria the IA should be concerned about
