CERTIFIED INTERNAL AUDITOR (CIA)
PRACTICE EXAM 2 QUESTIONS AND
ANSWERS| ACCURATE ANSWERS|UPDATED
VERSION 2025 Q&A |WITH RATIONALE
, CERTIFIED INTERNAL AUDITOR (CIA) PRACTICE EXAM 2 QUESTIONS
AND ANSWERS| ACCURATE ANSWERS|UPDATED VERSION 2025 Q&A
|WITH RATIONALE
1. Which of the following best describes the purpose of internal auditing?
A. To ensure compliance with accounting standards
B. To evaluate and improve the effectiveness of risk management, control, and
governance processes
C. To detect and prevent fraud in the organization
D. To review the financial statements of the organization
Rationale: The IIA defines internal auditing as an independent, objective
assurance and consulting activity designed to add value and improve an
organization's operations. Its primary purpose is to evaluate and improve risk
management, control, and governance.
2. The independence of the internal audit activity is achieved through:
A. The internal auditor's objectivity
B. Organizational status and objectivity
, C. Regular communication with operational management
D. The implementation of internal controls
Rationale: Independence is achieved through the internal audit activity’s status
in the organization and the objectivity of internal auditors. Organizational
status enables unrestricted access and reporting.
3. According to the IIA Code of Ethics, which principle requires internal auditors
to respect and contribute to the legitimate and ethical objectives of the
organization?
A. Integrity
B. Objectivity
C. Confidentiality
D. Competency
Rationale: The principle of integrity includes contributing to the ethical
objectives of the organization and performing duties honestly and responsibly.
4. Internal auditors should possess which of the following to perform their
duties effectively?
A. CPA certification
B. Minimum of five years’ experience
C. Sufficient knowledge to evaluate the risk of fraud
D. Advanced degree in accounting
PRACTICE EXAM 2 QUESTIONS AND
ANSWERS| ACCURATE ANSWERS|UPDATED
VERSION 2025 Q&A |WITH RATIONALE
, CERTIFIED INTERNAL AUDITOR (CIA) PRACTICE EXAM 2 QUESTIONS
AND ANSWERS| ACCURATE ANSWERS|UPDATED VERSION 2025 Q&A
|WITH RATIONALE
1. Which of the following best describes the purpose of internal auditing?
A. To ensure compliance with accounting standards
B. To evaluate and improve the effectiveness of risk management, control, and
governance processes
C. To detect and prevent fraud in the organization
D. To review the financial statements of the organization
Rationale: The IIA defines internal auditing as an independent, objective
assurance and consulting activity designed to add value and improve an
organization's operations. Its primary purpose is to evaluate and improve risk
management, control, and governance.
2. The independence of the internal audit activity is achieved through:
A. The internal auditor's objectivity
B. Organizational status and objectivity
, C. Regular communication with operational management
D. The implementation of internal controls
Rationale: Independence is achieved through the internal audit activity’s status
in the organization and the objectivity of internal auditors. Organizational
status enables unrestricted access and reporting.
3. According to the IIA Code of Ethics, which principle requires internal auditors
to respect and contribute to the legitimate and ethical objectives of the
organization?
A. Integrity
B. Objectivity
C. Confidentiality
D. Competency
Rationale: The principle of integrity includes contributing to the ethical
objectives of the organization and performing duties honestly and responsibly.
4. Internal auditors should possess which of the following to perform their
duties effectively?
A. CPA certification
B. Minimum of five years’ experience
C. Sufficient knowledge to evaluate the risk of fraud
D. Advanced degree in accounting
