CIA Exam Part 1 - Practice Exam Questions
, , , , , , ,
and answers 2025
, , , ,
The ,CAE ,is ,considering ,different ,methods ,of ,providing ,training ,in ,personal
,communication ,skills ,for ,the ,entire ,internal ,audit ,staff. ,Which ,of ,the ,following
,methodologies ,would ,be ,the ,most ,effective ,means ,of ,delivering ,such ,training?
A) ,Computer-based ,training ,in ,human ,relations ,skills
B) ,Individual ,coaching ,by ,a ,professional ,communications ,specialist
C) ,Self-study ,booklets ,explaining ,communication ,theory
D) ,Lecture ,course ,on ,communications ,delivered ,by ,a ,motivational ,speaker ,-
,CORRECT ,ANSWER-B) ,Individual ,coaching ,by ,a ,professional ,communications
,specialist
Which ,is ,an ,acceptable ,role ,for ,the ,internal ,audit ,activity ,in ,the ,risk
,management ,process?
A) ,No ,role
B) ,Managing ,specific ,risks ,if ,defined ,in ,the ,internal ,audit ,plan
C) ,Active, ,continuous ,support ,in ,the ,process ,such ,as ,leadership ,of ,oversight
,committees
D) ,Managing ,and ,coordinating ,the ,risk ,management ,process ,- ,CORRECT
,ANSWER-A) ,No ,role
Which ,is ,a ,required ,type ,of ,knowledge, ,skill, ,and ,other ,competency ,for ,an
,internal ,auditor?
,A) ,Basic ,comprehension ,of ,internal ,audit ,standards, ,procedures, ,and
,techniques ,required ,in ,performing ,engagements
B) ,An ,understanding ,of ,management ,principles ,and ,good ,business ,practices ,so
,deviations ,can ,be ,recognized ,and ,evaluated
C) ,Proficiency ,in ,accounting ,principles ,and ,techniques ,for ,all ,auditors
D) ,Proficiency ,in ,subjects ,such ,as ,accounting, ,economics, ,commercial ,law,
,quantitative ,methods, ,and ,IT ,- ,CORRECT ,ANSWER-B) ,An ,understanding ,of
,management ,principles ,and ,good ,business ,practices ,so ,deviations ,can ,be
,recognized ,and ,evaluated
The ,bank's ,internal ,audit ,charter ,neither ,authorizes ,nor ,forbids ,the ,internal
,audit ,activity ,to ,perform ,assurances ,for ,outside ,parties. ,Which ,of ,the ,following
,conditions ,apply ,to ,providing ,the ,requested ,service?
A) ,The ,vice ,president ,of ,finance ,may ,authorize ,the ,chief ,audit ,executive ,to
,schedule ,the ,engagement ,without ,amending ,the ,charter.
B) ,Providing ,assurances ,to ,outside ,parties ,is ,a ,violation ,of ,the ,Standards.
C) ,The ,vice ,president ,of ,finance ,needs ,approval ,of ,the ,chief ,financial ,officer ,or
,the ,audit ,committee ,before ,authorizing ,the ,chief ,audit ,executive ,to ,schedule
,the ,engagement ,without ,amending ,the ,charter.
D) ,The ,charter ,should ,be ,amended ,to ,allow ,the ,internal ,audit ,activity ,to ,provide
,assurance ,services ,to ,outside ,parties. ,- ,CORRECT ,ANSWER-D) ,The ,charter
,should ,be ,amended ,to ,allow ,the ,internal ,audit ,activity ,to ,provide ,assurance
,services ,to ,outside ,parties.
How ,should ,the ,process ,be ,handled ,when ,considering ,risk ,response ,(or ,risk
,treatment) ,when ,the ,organization ,uses ,an ,ERM ,environment?
A) ,As ,an ,iterative ,process ,that ,looks ,at ,the ,big ,picture ,but ,also ,departments
,and ,functions
B) ,As ,a ,waterfall ,process ,that ,considers ,the ,risks ,at ,a ,holistic ,level
C) ,As ,a ,process ,that ,sets ,the ,risk ,tolerance ,at ,the ,enterprise ,level ,and ,ensures
,that ,all ,departments ,adhere ,to ,it
D) ,As ,a ,method ,for ,setting ,control ,activities ,that ,ensures ,that ,collective ,risk
,limits ,are ,not ,exceeded ,in ,any ,individual ,instances ,- ,CORRECT ,ANSWER-A) ,As
,an ,iterative ,process ,that ,looks ,at ,the ,big ,picture ,but ,also ,departments ,and
,functions
An ,internal ,auditor ,is ,assigned ,financial ,audits. ,She ,performs ,the ,audits ,out ,of
,the ,audit ,department, ,downloads ,records ,electronically, ,communicates ,with ,the
,client ,through ,email, ,and ,uses ,audit ,software. ,Is ,the ,internal ,auditor
,demonstrating ,the ,required ,knowledge, ,skills, ,and ,competencies ,for ,an ,IA?
,A) ,Yes, ,the ,auditor ,is ,working ,very ,efficiently ,by ,taking ,advantage ,of
,technology
B) ,No, ,financial ,audits ,require ,working ,more ,closely ,with ,top ,finance ,executives
,due ,to ,the ,need ,to ,provide ,assurance ,on ,ICFR ,for ,this ,type ,of ,audit ,client
C) ,No, ,by ,limiting ,contact ,with ,the ,client, ,oral ,communications ,skills ,are ,not
,being ,used ,to ,clearly ,and ,effectively ,convey ,items ,such ,as ,engagement
,objectives, ,evaluations, ,conclusions, ,and ,recommendations.
D) ,Yes, ,the ,auditor ,is ,avoiding ,taking ,up ,too ,much ,of ,the ,audit ,client's ,time,
,which ,is ,value-added, ,and ,is ,demonstrating ,professional ,skepticism ,by
,focusing ,primarily ,on ,financial ,- ,CORRECT ,ANSWER-C) ,No, ,by ,limiting ,contact
,with ,the ,client, ,oral ,communications ,skills ,are ,not ,being ,used ,to ,clearly ,and
,effectively ,convey ,items ,such ,as ,engagement ,objectives, ,evaluations,
,conclusions, ,and ,recommendations.
Goods ,received ,from ,a ,certain ,supplier ,occasionally ,arrive ,without ,a ,proper ,bill
,of ,lading. ,In ,these ,situation, ,the ,receiving ,clerk ,is ,directed ,to ,telephone ,the
,supplier ,and ,request ,a ,bill ,of ,lading ,by ,fax ,so ,that ,he ,or ,she ,can ,compare ,what
,was ,actually ,received ,to ,the ,bill ,and ,research ,any ,discrepancies. ,Which ,of ,the
,following ,is ,this ,type ,of ,control?
A) ,application ,control
B) ,preventative ,control
C) ,governance ,control
D) ,detective ,control ,- ,CORRECT ,ANSWER-D) ,detective ,control
An ,adequate ,system ,of ,internal ,controls ,is ,most ,likely ,to ,detect ,an ,irregularity
,perpetrated ,by ,a ,
A) ,single ,manager
B) ,single ,employee
C) ,group ,of ,managers ,in ,collusion
D) ,group ,of ,employees ,in ,collusion ,- ,CORRECT ,ANSWER-B) ,single ,employee
Which ,activity ,should ,be ,treated ,as ,a ,clear ,impairment ,of ,an ,internal ,auditor's
,independence ,and ,objectivity?
A) ,Overseeing ,installation ,of ,new ,IT ,equipment ,to ,ensure ,compliance ,with ,the
,Orgs ,objectives
B) ,Participating ,in ,a ,team ,that ,assesses ,IT ,acquisition ,possibilities
, C) ,Reviewing ,competitive ,bids ,for ,development ,of ,new ,sales-tracking ,software
,before ,a ,purchase ,decision ,is ,made
D) ,Applying ,for ,a ,position ,in ,a ,different ,organization's ,IT ,department ,while
,participating ,in ,a ,consulting ,engagement ,with ,the ,current ,organization's ,IT
,department ,- ,CORRECT ,ANSWER-A) ,Overseeing ,installation ,of ,new ,IT
,equipment ,to ,ensure ,compliance ,with ,the ,Orgs ,objectives
An ,organization ,has ,projected ,the ,direct ,and ,indirect ,costs ,of ,relocating ,some
,of ,its ,operations ,offshore. ,Based ,on ,analysis ,results, ,the ,organization ,decides
,to ,move ,forward ,with ,offshoring. ,Which ,of ,the ,following ,statements ,best
,describes ,this ,outcome?
A) ,The ,major ,risk ,events ,associated ,with ,success ,are ,high ,in ,impact ,and ,high
,in ,likelihood
B) ,the ,analysis ,determined ,that ,pervasive ,risk ,is ,minimal
C) ,the ,decision ,falls ,within ,the ,organization's ,risk ,appetite
D) ,Inherent ,risk ,is ,lower ,than ,residual ,risk ,- ,CORRECT ,ANSWER-C) ,the
,decision ,falls ,within ,the ,organization's ,risk ,appetite
In ,the ,final ,report ,for ,an ,internal ,audit, ,the ,internal ,auditor ,states ,that ,security
,controls ,are ,at ,the ,same ,level ,of ,effectiveness ,as ,in ,the ,previous ,audit. ,There
,is ,no ,mention ,that ,control ,activities ,in ,the ,previous ,audit ,were ,found ,to ,be
,unsatisfactory. ,According ,to ,the ,Code ,of ,Ethics, ,this ,communication ,is...
A) ,specific ,but ,not ,ethical
B) ,prudent ,and ,competent
C) ,balanced ,and ,objective
D) ,potentially ,biased ,- ,CORRECT ,ANSWER-D) ,potentially ,biased
Internal ,auditing ,is ,unique ,in ,that ,its ,scope ,often ,encompasses ,all ,areas ,of ,an
,organization. ,It ,is ,not ,possible ,for ,each ,internal ,auditor ,to ,possess ,detailed
,competence ,in ,all ,areas ,that ,might ,be ,audited. ,However, ,which ,of ,the ,following
,competencies ,is ,required ,by ,the ,Standards ,for ,every ,internal ,auditor?
A) ,proficiency ,in ,management ,principles
B) ,taxation ,and ,law ,as ,it ,applies ,to ,the ,operation ,of ,the ,organization
C) ,sufficient ,knowledge ,of ,key ,information ,technology ,risks ,and ,controls
D) ,proficiency ,in ,accounting ,principles ,- ,CORRECT ,ANSWER-C) ,sufficient
,knowledge ,of ,key ,information ,technology ,risks ,and ,controls
, , , , , , ,
and answers 2025
, , , ,
The ,CAE ,is ,considering ,different ,methods ,of ,providing ,training ,in ,personal
,communication ,skills ,for ,the ,entire ,internal ,audit ,staff. ,Which ,of ,the ,following
,methodologies ,would ,be ,the ,most ,effective ,means ,of ,delivering ,such ,training?
A) ,Computer-based ,training ,in ,human ,relations ,skills
B) ,Individual ,coaching ,by ,a ,professional ,communications ,specialist
C) ,Self-study ,booklets ,explaining ,communication ,theory
D) ,Lecture ,course ,on ,communications ,delivered ,by ,a ,motivational ,speaker ,-
,CORRECT ,ANSWER-B) ,Individual ,coaching ,by ,a ,professional ,communications
,specialist
Which ,is ,an ,acceptable ,role ,for ,the ,internal ,audit ,activity ,in ,the ,risk
,management ,process?
A) ,No ,role
B) ,Managing ,specific ,risks ,if ,defined ,in ,the ,internal ,audit ,plan
C) ,Active, ,continuous ,support ,in ,the ,process ,such ,as ,leadership ,of ,oversight
,committees
D) ,Managing ,and ,coordinating ,the ,risk ,management ,process ,- ,CORRECT
,ANSWER-A) ,No ,role
Which ,is ,a ,required ,type ,of ,knowledge, ,skill, ,and ,other ,competency ,for ,an
,internal ,auditor?
,A) ,Basic ,comprehension ,of ,internal ,audit ,standards, ,procedures, ,and
,techniques ,required ,in ,performing ,engagements
B) ,An ,understanding ,of ,management ,principles ,and ,good ,business ,practices ,so
,deviations ,can ,be ,recognized ,and ,evaluated
C) ,Proficiency ,in ,accounting ,principles ,and ,techniques ,for ,all ,auditors
D) ,Proficiency ,in ,subjects ,such ,as ,accounting, ,economics, ,commercial ,law,
,quantitative ,methods, ,and ,IT ,- ,CORRECT ,ANSWER-B) ,An ,understanding ,of
,management ,principles ,and ,good ,business ,practices ,so ,deviations ,can ,be
,recognized ,and ,evaluated
The ,bank's ,internal ,audit ,charter ,neither ,authorizes ,nor ,forbids ,the ,internal
,audit ,activity ,to ,perform ,assurances ,for ,outside ,parties. ,Which ,of ,the ,following
,conditions ,apply ,to ,providing ,the ,requested ,service?
A) ,The ,vice ,president ,of ,finance ,may ,authorize ,the ,chief ,audit ,executive ,to
,schedule ,the ,engagement ,without ,amending ,the ,charter.
B) ,Providing ,assurances ,to ,outside ,parties ,is ,a ,violation ,of ,the ,Standards.
C) ,The ,vice ,president ,of ,finance ,needs ,approval ,of ,the ,chief ,financial ,officer ,or
,the ,audit ,committee ,before ,authorizing ,the ,chief ,audit ,executive ,to ,schedule
,the ,engagement ,without ,amending ,the ,charter.
D) ,The ,charter ,should ,be ,amended ,to ,allow ,the ,internal ,audit ,activity ,to ,provide
,assurance ,services ,to ,outside ,parties. ,- ,CORRECT ,ANSWER-D) ,The ,charter
,should ,be ,amended ,to ,allow ,the ,internal ,audit ,activity ,to ,provide ,assurance
,services ,to ,outside ,parties.
How ,should ,the ,process ,be ,handled ,when ,considering ,risk ,response ,(or ,risk
,treatment) ,when ,the ,organization ,uses ,an ,ERM ,environment?
A) ,As ,an ,iterative ,process ,that ,looks ,at ,the ,big ,picture ,but ,also ,departments
,and ,functions
B) ,As ,a ,waterfall ,process ,that ,considers ,the ,risks ,at ,a ,holistic ,level
C) ,As ,a ,process ,that ,sets ,the ,risk ,tolerance ,at ,the ,enterprise ,level ,and ,ensures
,that ,all ,departments ,adhere ,to ,it
D) ,As ,a ,method ,for ,setting ,control ,activities ,that ,ensures ,that ,collective ,risk
,limits ,are ,not ,exceeded ,in ,any ,individual ,instances ,- ,CORRECT ,ANSWER-A) ,As
,an ,iterative ,process ,that ,looks ,at ,the ,big ,picture ,but ,also ,departments ,and
,functions
An ,internal ,auditor ,is ,assigned ,financial ,audits. ,She ,performs ,the ,audits ,out ,of
,the ,audit ,department, ,downloads ,records ,electronically, ,communicates ,with ,the
,client ,through ,email, ,and ,uses ,audit ,software. ,Is ,the ,internal ,auditor
,demonstrating ,the ,required ,knowledge, ,skills, ,and ,competencies ,for ,an ,IA?
,A) ,Yes, ,the ,auditor ,is ,working ,very ,efficiently ,by ,taking ,advantage ,of
,technology
B) ,No, ,financial ,audits ,require ,working ,more ,closely ,with ,top ,finance ,executives
,due ,to ,the ,need ,to ,provide ,assurance ,on ,ICFR ,for ,this ,type ,of ,audit ,client
C) ,No, ,by ,limiting ,contact ,with ,the ,client, ,oral ,communications ,skills ,are ,not
,being ,used ,to ,clearly ,and ,effectively ,convey ,items ,such ,as ,engagement
,objectives, ,evaluations, ,conclusions, ,and ,recommendations.
D) ,Yes, ,the ,auditor ,is ,avoiding ,taking ,up ,too ,much ,of ,the ,audit ,client's ,time,
,which ,is ,value-added, ,and ,is ,demonstrating ,professional ,skepticism ,by
,focusing ,primarily ,on ,financial ,- ,CORRECT ,ANSWER-C) ,No, ,by ,limiting ,contact
,with ,the ,client, ,oral ,communications ,skills ,are ,not ,being ,used ,to ,clearly ,and
,effectively ,convey ,items ,such ,as ,engagement ,objectives, ,evaluations,
,conclusions, ,and ,recommendations.
Goods ,received ,from ,a ,certain ,supplier ,occasionally ,arrive ,without ,a ,proper ,bill
,of ,lading. ,In ,these ,situation, ,the ,receiving ,clerk ,is ,directed ,to ,telephone ,the
,supplier ,and ,request ,a ,bill ,of ,lading ,by ,fax ,so ,that ,he ,or ,she ,can ,compare ,what
,was ,actually ,received ,to ,the ,bill ,and ,research ,any ,discrepancies. ,Which ,of ,the
,following ,is ,this ,type ,of ,control?
A) ,application ,control
B) ,preventative ,control
C) ,governance ,control
D) ,detective ,control ,- ,CORRECT ,ANSWER-D) ,detective ,control
An ,adequate ,system ,of ,internal ,controls ,is ,most ,likely ,to ,detect ,an ,irregularity
,perpetrated ,by ,a ,
A) ,single ,manager
B) ,single ,employee
C) ,group ,of ,managers ,in ,collusion
D) ,group ,of ,employees ,in ,collusion ,- ,CORRECT ,ANSWER-B) ,single ,employee
Which ,activity ,should ,be ,treated ,as ,a ,clear ,impairment ,of ,an ,internal ,auditor's
,independence ,and ,objectivity?
A) ,Overseeing ,installation ,of ,new ,IT ,equipment ,to ,ensure ,compliance ,with ,the
,Orgs ,objectives
B) ,Participating ,in ,a ,team ,that ,assesses ,IT ,acquisition ,possibilities
, C) ,Reviewing ,competitive ,bids ,for ,development ,of ,new ,sales-tracking ,software
,before ,a ,purchase ,decision ,is ,made
D) ,Applying ,for ,a ,position ,in ,a ,different ,organization's ,IT ,department ,while
,participating ,in ,a ,consulting ,engagement ,with ,the ,current ,organization's ,IT
,department ,- ,CORRECT ,ANSWER-A) ,Overseeing ,installation ,of ,new ,IT
,equipment ,to ,ensure ,compliance ,with ,the ,Orgs ,objectives
An ,organization ,has ,projected ,the ,direct ,and ,indirect ,costs ,of ,relocating ,some
,of ,its ,operations ,offshore. ,Based ,on ,analysis ,results, ,the ,organization ,decides
,to ,move ,forward ,with ,offshoring. ,Which ,of ,the ,following ,statements ,best
,describes ,this ,outcome?
A) ,The ,major ,risk ,events ,associated ,with ,success ,are ,high ,in ,impact ,and ,high
,in ,likelihood
B) ,the ,analysis ,determined ,that ,pervasive ,risk ,is ,minimal
C) ,the ,decision ,falls ,within ,the ,organization's ,risk ,appetite
D) ,Inherent ,risk ,is ,lower ,than ,residual ,risk ,- ,CORRECT ,ANSWER-C) ,the
,decision ,falls ,within ,the ,organization's ,risk ,appetite
In ,the ,final ,report ,for ,an ,internal ,audit, ,the ,internal ,auditor ,states ,that ,security
,controls ,are ,at ,the ,same ,level ,of ,effectiveness ,as ,in ,the ,previous ,audit. ,There
,is ,no ,mention ,that ,control ,activities ,in ,the ,previous ,audit ,were ,found ,to ,be
,unsatisfactory. ,According ,to ,the ,Code ,of ,Ethics, ,this ,communication ,is...
A) ,specific ,but ,not ,ethical
B) ,prudent ,and ,competent
C) ,balanced ,and ,objective
D) ,potentially ,biased ,- ,CORRECT ,ANSWER-D) ,potentially ,biased
Internal ,auditing ,is ,unique ,in ,that ,its ,scope ,often ,encompasses ,all ,areas ,of ,an
,organization. ,It ,is ,not ,possible ,for ,each ,internal ,auditor ,to ,possess ,detailed
,competence ,in ,all ,areas ,that ,might ,be ,audited. ,However, ,which ,of ,the ,following
,competencies ,is ,required ,by ,the ,Standards ,for ,every ,internal ,auditor?
A) ,proficiency ,in ,management ,principles
B) ,taxation ,and ,law ,as ,it ,applies ,to ,the ,operation ,of ,the ,organization
C) ,sufficient ,knowledge ,of ,key ,information ,technology ,risks ,and ,controls
D) ,proficiency ,in ,accounting ,principles ,- ,CORRECT ,ANSWER-C) ,sufficient
,knowledge ,of ,key ,information ,technology ,risks ,and ,controls
