CIA Part 1: Internal Audit Essentials – Complete Certification Prep

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CIA Part 1 Question and Answers

Mission of Internal Audit - -Correct 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 - -Correct
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 - -Correct Answer-1. Business Disruption and System
Failures
2. Clients, Products, & Business Practices
3. Credit
4. Damage to Physical Assets
5. External Fraud

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6. Employment Practices and Workplace Safety
7. Execution, Delivery & Process Management
8. Internal Fraud
9. Insurance
10. Market


Types of Controls - -Correct 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 - -Correct 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.

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Code of Ethics — Principles - -Correct Answer-1. Integrity
2. Objectivity
3. Confidentiality
4. Competency


Integrity - -Correct 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 - -Correct 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.

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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 - -Correct 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 - -Correct 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.

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