CIA TEST PREP FINAL EXAM 2026\2027.
(T/F) The Institute of Internal Auditors' International Professional Practices
Framework consists of mandatory guidance, strongly recommended guidance, and
preferred guidance.
FALSE. The Institute of Internal Auditors' (The IIA's) International Professional Practices
Framework (IPPF) only contains mandatory guidance and strongly recommended guidance.
(T/F) The Racketeer Influenced and Corrupt Organizations (RICO) Act has both civil
and criminal provisions.
TRUE. RICO has both civil and criminal provisions. The criminal portion provides for fines and
prison sentences, and the civil portion provides for the awarding of treble damages and
attorney's fees to the successful plaintiff.
(T/F) The mandatory guidance of the IPPF consists of two elements: the Code of
Ethics and the Standards.
TRUE. The mandatory guidance consists of four elements: the Core Principles, the Definition
of Internal Auditing, the Code of Ethics, and the Standards.
(T/F) The Standards (known formally as the International Standards for the
Professional Practice of Internal Auditing) only serve the following three purposes
described by The IIA:
1. Guiding adherence to the mandatory elements of the IPPF.
2. Providing a framework for performing and promoting a broad range of value-
added internal auditing
3. Fostering improved organizational processes and operations
FALSE: The Standards serve the following four purposes:
1. Guiding adherence to the mandatory elements of the IPPF
2. Providing a framework for performing and promoting a broad range of value-added
internal auditing
, CIA TEST PREP FINAL EXAM 2026\2027.
3. Establishing the basis for the evaluation of internal audit performance
4. Fostering improved organizational processes and operations
(T/F) The two strongly recommended elements of the IPPF are Implementation
Guidance and Supplemental Guidance.
TRUE: The two strongly recommended elements of the IPPF are Implementation Guidance and
Supplemental Guidance.
(T/F) Clarifications are provided by The IIA to clarify terms and concepts referred to
in Attribute or Performance Standards.
FALSE: Interpretations are provided by The IIA to clarify terms and concepts referred to in
Attribute or Performance Standards.
(T/F) Internal auditing is defined as 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.
TRUE: Internal auditing is correctly defined as 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
evaluating and improving the effectiveness of risk management, control, and governance
processes (Definition of Internal Auditing).
(T/F) The primary purpose of a code of ethical behavior for a professional
organization is to promote an ethical culture among professionals who serve others.
TRUE: The primary purpose of a code of ethical behavior for a professional organization is to
promote an ethical culture among professionals who serve others.
(T/F) The existence of a code of ethical behavior will ensure that those outside the
organization will believe that the organization is trustworthy.
(T/F) The Institute of Internal Auditors' International Professional Practices
Framework consists of mandatory guidance, strongly recommended guidance, and
preferred guidance.
FALSE. The Institute of Internal Auditors' (The IIA's) International Professional Practices
Framework (IPPF) only contains mandatory guidance and strongly recommended guidance.
(T/F) The Racketeer Influenced and Corrupt Organizations (RICO) Act has both civil
and criminal provisions.
TRUE. RICO has both civil and criminal provisions. The criminal portion provides for fines and
prison sentences, and the civil portion provides for the awarding of treble damages and
attorney's fees to the successful plaintiff.
(T/F) The mandatory guidance of the IPPF consists of two elements: the Code of
Ethics and the Standards.
TRUE. The mandatory guidance consists of four elements: the Core Principles, the Definition
of Internal Auditing, the Code of Ethics, and the Standards.
(T/F) The Standards (known formally as the International Standards for the
Professional Practice of Internal Auditing) only serve the following three purposes
described by The IIA:
1. Guiding adherence to the mandatory elements of the IPPF.
2. Providing a framework for performing and promoting a broad range of value-
added internal auditing
3. Fostering improved organizational processes and operations
FALSE: The Standards serve the following four purposes:
1. Guiding adherence to the mandatory elements of the IPPF
2. Providing a framework for performing and promoting a broad range of value-added
internal auditing
, CIA TEST PREP FINAL EXAM 2026\2027.
3. Establishing the basis for the evaluation of internal audit performance
4. Fostering improved organizational processes and operations
(T/F) The two strongly recommended elements of the IPPF are Implementation
Guidance and Supplemental Guidance.
TRUE: The two strongly recommended elements of the IPPF are Implementation Guidance and
Supplemental Guidance.
(T/F) Clarifications are provided by The IIA to clarify terms and concepts referred to
in Attribute or Performance Standards.
FALSE: Interpretations are provided by The IIA to clarify terms and concepts referred to in
Attribute or Performance Standards.
(T/F) Internal auditing is defined as 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.
TRUE: Internal auditing is correctly defined as 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
evaluating and improving the effectiveness of risk management, control, and governance
processes (Definition of Internal Auditing).
(T/F) The primary purpose of a code of ethical behavior for a professional
organization is to promote an ethical culture among professionals who serve others.
TRUE: The primary purpose of a code of ethical behavior for a professional organization is to
promote an ethical culture among professionals who serve others.
(T/F) The existence of a code of ethical behavior will ensure that those outside the
organization will believe that the organization is trustworthy.
