CIA Part 1 Multiple Choice
Questions and Answers
Updated 2026
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. - AnswerD
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. - AnswerC. 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. - AnswerC.
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. - AnswerD. 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. - AnswerC. 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.
D. Fostering improved organizational processes and operations. - AnswerB. 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. - AnswerC.
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 - AnswerA.
,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 - AnswerC.
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. - AnswerC.
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 -
AnswerA
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 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. - AnswerB.
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. - AnswerD.
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. - AnswerA.
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. - AnswerB
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.
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. - AnswerA
Questions and Answers
Updated 2026
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. - AnswerD
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. - AnswerC. 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. - AnswerC.
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. - AnswerD. 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. - AnswerC. 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.
D. Fostering improved organizational processes and operations. - AnswerB. 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. - AnswerC.
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 - AnswerA.
,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 - AnswerC.
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. - AnswerC.
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 -
AnswerA
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 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. - AnswerB.
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. - AnswerD.
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. - AnswerA.
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. - AnswerB
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.
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. - AnswerA
