1
CIA Part 1 Multiple Choice Questions
and Answers
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
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.
1
, 2
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.
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.
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.
2
, 3
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
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.
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.
3
, 4
D. Fostering improved organizational processes and operations. - -
Correct Answer-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. - -Correct Answer-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 - -Correct Answer-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
4
CIA Part 1 Multiple Choice Questions
and Answers
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
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.
1
, 2
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.
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.
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.
2
, 3
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
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.
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.
3
, 4
D. Fostering improved organizational processes and operations. - -
Correct Answer-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. - -Correct Answer-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 - -Correct Answer-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
4
