2026/2027 CIA FINAL EXAM REVIEW
Mission of Internal Audit - ANSWER-To enhance and protect organizational value by
providing risk-based and objective assurance, advice, and insight.
Core Principles for the Professional Practice of Internal Auditing - ANSWER-
Demonstrates integrity.
Demonstrates competence and due professional care.
Is objective and free from undue influence (independent).
Aligns with the strategies, objectives, and risks of the organization.
Is appropriately positioned and adequately resourced.
Demonstrates quality and continuous improvement.
Communicates effectively.
Provides risk-based assurance.
Is insightful, proactive, and future-focused.
Promotes organizational improvement.
Risk Categories - ANSWER-1. Business Disruption and System Failures
2. Clients, Products, & Business Practices
3. Credit
4. Damage to Physical Assets
5. External Fraud
6. Employment Practices and Workplace Safety
7. Execution, Delivery & Process Management
8. Internal Fraud
9. Insurance
10. Market
Types of Controls - ANSWER-1. Analytical Procedures
2. Approvals and Authorizations
3. Confirmations
4. Exception Reporting and Tracking
5. Ongoing Monitoring
6. Physical Security
7. Reconciliations
8. Segregation of Duties
9. Transaction/Application Controls
10. Information and Communication
11. Risk Assessment
12. Training
Definition of Internal Auditing - ANSWER-Internal auditing is an independent, objective
assurance and consulting activity designed to add value and improve an organization's
operations. It helps an organization accomplish its objectives by bringing a systematic,
,disciplined approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.
Code of Ethics — Principles - ANSWER-1. Integrity
2. Objectivity
3. Confidentiality
4. Competency
Integrity - ANSWER-Internal auditors:
Shall perform their work with honesty, diligence, and responsibility.
Shall observe the law and make disclosures expected by the law and the profession.
Shall not knowingly be a party to any illegal activity, or engage in acts that are
discreditable to the profession of internal auditing or to the organization.
Shall respect and contribute to the legitimate and ethical objectives of the organization.
Objectivity - ANSWER-Internal auditors:
Shall not participate in any activity or relationship that may impair or be presumed to
impair their unbiased assessment. This participation includes those activities or
relationships that may be in conflict with the interests of the organization.
Shall not accept anything that may impair or be presumed to impair their professional
judgment.
Shall disclose all material facts known to them that, if not disclosed, may distort the
reporting of activities under review.
Confidentiality - ANSWER-Internal auditors:
Shall be prudent in the use and protection of information acquired in the course of their
duties.
Shall not use information for any personal gain or in any manner that would be contrary
to the law or detrimental to the legitimate and ethical objectives of the organization.
Competency - ANSWER-Internal auditors:
Shall engage only in those services for which they have the necessary knowledge,
skills, and experience.
Shall perform internal audit services in accordance with the International Standards for
the Professional Practice of Internal Auditing (Standards).
, Shall continually improve their proficiency and the effectiveness and quality of their
services.
Add Value - ANSWER-The internal audit activity adds value to the organization (and its
stakeholders) when it provides objective and relevant assurance, and contributes to the
effectiveness and efficiency of governance, risk management, and control processes.
Adequate Control - ANSWER-Present if management has planned and organized
(designed) in a manner that provides reasonable assurance that the organization's risks
have been managed effectively and that the organization's goals and objectives will be
achieved efficiently and economically.
Assurance Services - ANSWER-An objective examination of evidence for the purpose
of providing an independent assessment on governance, risk management, and control
processes for the organization. Examples may include financial, performance,
compliance, system security, and due diligence engagements.
Board - ANSWER-The highest level of governing body charged with the responsibility to
direct and/or oversee the activities and management of the organization. Typically, this
includes an independent group of directors (e.g., a board of directors, a supervisory
board, or a board of governors or trustees). If such a group does not exist, the "board"
may refer to the head of the organization. "Board" may refer to an audit committee to
which the governing body has delegated certain functions.
Charter - ANSWER-A formal document that defines the internal audit activity's purpose,
authority, and responsibility. The internal audit charter establishes the internal audit
activity's position within the organization; authorizes access to records, personnel, and
physical properties relevant to the performance of engagements; and defines the scope
of internal audit activities.
Chief Audit Executive - ANSWER-A person in a senior position responsible for
effectively managing the internal audit activity in accordance with the internal audit
charter and the Definition of Internal Auditing, the Code of Ethics, and the Standards.
The chief audit executive or others reporting to the chief audit executive will have
appropriate professional certifications and qualifications. The specific job title of the
chief audit executive may vary across organizations.
Code of Ethics - ANSWER-Principles relevant to the profession and practice of internal
auditing, and Rules of Conduct that describe behavior expected of internal auditors. The
Code of Ethics applies to both parties and entities that provide internal audit services.
The purpose of the Code of Ethics is to promote an ethical culture in the global
profession of internal auditing.
Compliance - ANSWER-Adherence to policies, plans, procedures, laws, regulations,
contracts, or other requirements.
Mission of Internal Audit - ANSWER-To enhance and protect organizational value by
providing risk-based and objective assurance, advice, and insight.
Core Principles for the Professional Practice of Internal Auditing - ANSWER-
Demonstrates integrity.
Demonstrates competence and due professional care.
Is objective and free from undue influence (independent).
Aligns with the strategies, objectives, and risks of the organization.
Is appropriately positioned and adequately resourced.
Demonstrates quality and continuous improvement.
Communicates effectively.
Provides risk-based assurance.
Is insightful, proactive, and future-focused.
Promotes organizational improvement.
Risk Categories - ANSWER-1. Business Disruption and System Failures
2. Clients, Products, & Business Practices
3. Credit
4. Damage to Physical Assets
5. External Fraud
6. Employment Practices and Workplace Safety
7. Execution, Delivery & Process Management
8. Internal Fraud
9. Insurance
10. Market
Types of Controls - ANSWER-1. Analytical Procedures
2. Approvals and Authorizations
3. Confirmations
4. Exception Reporting and Tracking
5. Ongoing Monitoring
6. Physical Security
7. Reconciliations
8. Segregation of Duties
9. Transaction/Application Controls
10. Information and Communication
11. Risk Assessment
12. Training
Definition of Internal Auditing - ANSWER-Internal auditing is an independent, objective
assurance and consulting activity designed to add value and improve an organization's
operations. It helps an organization accomplish its objectives by bringing a systematic,
,disciplined approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.
Code of Ethics — Principles - ANSWER-1. Integrity
2. Objectivity
3. Confidentiality
4. Competency
Integrity - ANSWER-Internal auditors:
Shall perform their work with honesty, diligence, and responsibility.
Shall observe the law and make disclosures expected by the law and the profession.
Shall not knowingly be a party to any illegal activity, or engage in acts that are
discreditable to the profession of internal auditing or to the organization.
Shall respect and contribute to the legitimate and ethical objectives of the organization.
Objectivity - ANSWER-Internal auditors:
Shall not participate in any activity or relationship that may impair or be presumed to
impair their unbiased assessment. This participation includes those activities or
relationships that may be in conflict with the interests of the organization.
Shall not accept anything that may impair or be presumed to impair their professional
judgment.
Shall disclose all material facts known to them that, if not disclosed, may distort the
reporting of activities under review.
Confidentiality - ANSWER-Internal auditors:
Shall be prudent in the use and protection of information acquired in the course of their
duties.
Shall not use information for any personal gain or in any manner that would be contrary
to the law or detrimental to the legitimate and ethical objectives of the organization.
Competency - ANSWER-Internal auditors:
Shall engage only in those services for which they have the necessary knowledge,
skills, and experience.
Shall perform internal audit services in accordance with the International Standards for
the Professional Practice of Internal Auditing (Standards).
, Shall continually improve their proficiency and the effectiveness and quality of their
services.
Add Value - ANSWER-The internal audit activity adds value to the organization (and its
stakeholders) when it provides objective and relevant assurance, and contributes to the
effectiveness and efficiency of governance, risk management, and control processes.
Adequate Control - ANSWER-Present if management has planned and organized
(designed) in a manner that provides reasonable assurance that the organization's risks
have been managed effectively and that the organization's goals and objectives will be
achieved efficiently and economically.
Assurance Services - ANSWER-An objective examination of evidence for the purpose
of providing an independent assessment on governance, risk management, and control
processes for the organization. Examples may include financial, performance,
compliance, system security, and due diligence engagements.
Board - ANSWER-The highest level of governing body charged with the responsibility to
direct and/or oversee the activities and management of the organization. Typically, this
includes an independent group of directors (e.g., a board of directors, a supervisory
board, or a board of governors or trustees). If such a group does not exist, the "board"
may refer to the head of the organization. "Board" may refer to an audit committee to
which the governing body has delegated certain functions.
Charter - ANSWER-A formal document that defines the internal audit activity's purpose,
authority, and responsibility. The internal audit charter establishes the internal audit
activity's position within the organization; authorizes access to records, personnel, and
physical properties relevant to the performance of engagements; and defines the scope
of internal audit activities.
Chief Audit Executive - ANSWER-A person in a senior position responsible for
effectively managing the internal audit activity in accordance with the internal audit
charter and the Definition of Internal Auditing, the Code of Ethics, and the Standards.
The chief audit executive or others reporting to the chief audit executive will have
appropriate professional certifications and qualifications. The specific job title of the
chief audit executive may vary across organizations.
Code of Ethics - ANSWER-Principles relevant to the profession and practice of internal
auditing, and Rules of Conduct that describe behavior expected of internal auditors. The
Code of Ethics applies to both parties and entities that provide internal audit services.
The purpose of the Code of Ethics is to promote an ethical culture in the global
profession of internal auditing.
Compliance - ANSWER-Adherence to policies, plans, procedures, laws, regulations,
contracts, or other requirements.
