العربية

CIA Part 1

Certified Internal Auditor (CIA) Part 1: Internal Audit Fundamentals: free practice test

Start with 10 free questions to see what needs more practice. Finish to see your score, weakest units and every option explained.

Back to Certified Internal Auditor (CIA) Part 1: Internal Audit Fundamentals

Practice test questions with answers and explanations

Try the questions in the test above first, then open each one here to see the correct answer and why every other option is wrong.

01The board of a regional bank asks the chief audit executive (CAE) to explain the value internal audit adds beyond checking compliance. Which response best reflects the Global Internal Audit Standards?

Practice question Unit: Foundations of Internal Auditing

  1. AIt also takes key decisions on controls so that managers can focus on strategy

    Taking control decisions is a management responsibility; internal audit gives insight that helps others decide.

  2. BIt mainly identifies staff and supervisors behind control failures and reports them to the board and management for discipline

    Internal audit reports control weaknesses and root causes to support improvement; discipline is a management matter.

  3. CIt certifies to regulators that the bank’s risk management cannot fail

    Internal auditing gives assurance, not a certification that controls cannot fail.

  4. DIt also gives insight and foresight that help the board and management make decisions and oversee risks ✓ Correct answer

    Beyond assurance, the purpose statement includes advice, insight, and foresight that enhance decision-making and oversight.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section A, Topic 1, p.1; The IIA, Global Internal Audit Standards (2024), Domain I: Purpose of Internal Auditing

02A bank’s regulator issues a rule that prescribes part of the internal audit function’s responsibilities. What must the chief audit executive do regarding the internal audit charter?

Practice question Unit: Foundations of Internal Auditing

  1. AKeep the charter unchanged, since regulatory rules override the charter automatically

    The charter must reflect the legal requirements rather than leave them outside it.

  2. BLet senior management decide how to reflect the rule

    Applicability of a regulation is not a choice for senior management.

  3. CSubstitute the regulation for the charter as the governing document

    The charter remains necessary and still covers the elements the Standards require.

  4. DSet out the legal requirements of the mandate in the charter ✓ Correct answer

    Where laws or regulations prescribe the mandate wholly or partly, the charter must set out those legal requirements.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section A, Topic 2, p.1; The IIA, Global Internal Audit Standards (2024), Standard 6.1 Internal Audit Mandate; Standard 6.2 Internal Audit Charter

03A CAE has drafted a new charter. Before presenting it for approval, what do the Standards require the CAE to do?

Practice question Unit: Foundations of Internal Auditing

  1. AHave an external quality assessor certify it for the board

    External assessors review conformance periodically; they do not certify a draft charter.

  2. BObtain sign-off from senior management and every department head subject to audit work

    Auditees’ sign-off is not required and could compromise independence.

  3. CGo over it with the board and senior management to confirm it reflects their expectations ✓ Correct answer

    The CAE must discuss the proposed charter with the board and senior management to confirm it reflects their understanding and expectations.

  4. DPublish it on the intranet for employee comments for one month

    Employee consultation is not a requirement of the Standards.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section A, Topic 3, p.1; The IIA, Global Internal Audit Standards (2024), Standard 6.2 Internal Audit Charter

04Which statement best distinguishes reasonable assurance from limited assurance?

Practice question Unit: Foundations of Internal Auditing

  1. AReasonable assurance rests on more extensive procedures, giving a higher, but not absolute, level of confidence ✓ Correct answer

    The level of assurance depends on the nature, timing, and extent of procedures; reasonable assurance is higher but never absolute.

  2. BLimited assurance is given by external auditors and reviewers, not by internal auditors

    Internal auditors may give limited or reasonable assurance depending on the work performed.

  3. CLimited assurance is the level that may be used in advisory engagements

    Advisory services provide no assurance at all.

  4. DWhereas limited assurance covers a sample, reasonable assurance is absolute, covering every transaction

    No assurance is absolute because of inherent limitations such as sampling and judgment.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section A, Topic 4, p.1; The IIA, Global Internal Audit Standards (2024), Glossary: assurance services; Internal Auditing: Assurance & Advisory Services, 6th edition

05A regional manager asks Mariam, an internal auditor, to delete a finding from her draft report, saying it 'will cost him his bonus'. The finding is supported by evidence. What should Mariam do?

Practice question Unit: Ethics and Professionalism

  1. AKeep the finding and discuss the pressure with her supervisor ✓ Correct answer

    Standard 1.1 forbids concealing findings and expects auditors to discuss challenging situations with a supervisor.

  2. BSoften the finding until the manager agrees

    Diluting a supported finding to gain agreement is misleading.

  3. CRemove the finding and mention it orally to the manager’s superior

    Removing a supported finding conceals it, even if it is mentioned orally.

  4. DDelete it to protect the bonus

    Personal consequences do not justify concealment.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section B, Topic 1, p.3; The IIA, Global Internal Audit Standards (2024), Standard 1.1 Honesty and Professional Courage

06Hamad audited the procurement unit for five straight years and has grown close to its staff. In this year’s draft he wrote, 'Controls are working as in prior years,' without new testing. He never designed or operated any procurement controls. Which bias is most evident?

Practice question Unit: Ethics and Professionalism

  1. AA self-interest bias

    Self-interest arises when the auditor stands to gain personally or financially; nothing in the case points to any gain for Hamad.

  2. BPrejudice against people or groups

    Prejudice is a predisposed view about characteristics of people or groups; nothing here concerns people or groups.

  3. CFamiliarity bias ✓ Correct answer

    Years on the same unit, close ties with its staff, and relying on past results instead of fresh evidence reflect familiarity bias; he never designed or ran the controls, so this is not self-review.

  4. DGroupthink bias

    Groupthink arises when a team suppresses dissent to reach consensus; Hamad made the judgment alone.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section B, Topic 2, p.3; The IIA, Global Internal Audit Standards (2024), Standard 2.1 Individual Objectivity; Standard 4.3 Professional Skepticism

07The audit committee chair asks to meet the CAE alone each quarter. The CFO objects and insists on attending every meeting. What is the most appropriate position?

Practice question Unit: Governance, Risk Management, and Control

  1. AAllow the CFO to attend the private sessions

    Budget involvement does not give the CFO a right to attend private sessions.

  2. BMeet once a year with the CFO present for part of the session

    Annual sessions with the CFO partly present still deny the board regular private access to the CAE.

  3. CRun the sessions with the CAE if the CEO approves them in writing first

    Board access to the CAE should not depend on management approval.

  4. DHold the private sessions without management present ✓ Correct answer

    An essential condition in Standard 6.3 is that the board meets periodically with the CAE without senior management present.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section C, Topic 1, p.4; The IIA, Global Internal Audit Standards (2024), Standard 6.3 Board and Senior Management Support

08A company has a detailed, board-approved conduct policy. An employee survey shows that most staff fear retaliation if they report misconduct. What does this most likely indicate?

Practice question Unit: Governance, Risk Management, and Control

  1. AThe control environment is strong with a policy in place

    A policy on paper does not make the environment strong if people do not trust it.

  2. BThe ethical culture is weaker than the written policy suggests ✓ Correct answer

    Fear of retaliation shows that actual behavior does not match the stated values, which weakens the control environment.

  3. CThe survey is unreliable, so it should be set aside

    Survey results are useful evidence about culture and should be followed up.

  4. DThe reporting hotline needs to be replaced with a new external provider

    The concern is about trust and leadership behavior, not just the hotline vendor.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section C, Topic 2, p.4; The IIA, Global Internal Audit Standards (2024), Standard 1.2 Organization’s Ethical Expectations; IIA Global PG: Auditing Culture, 2nd edition; COSO, Internal Control – Integrated Framework (2013)

09A logistics company is opening operations in a new country next year. When updating the internal audit plan, what should the CAE make sure is identified?

Practice question Unit: Governance, Risk Management, and Control

  1. AThe group policies, leaving local law to legal staff

    Internal auditors must understand relevant laws, not leave them to legal staff.

  2. BThe new country’s laws and rules that apply to the operations ✓ Correct answer

    New jurisdictions bring new legal and regulatory requirements that affect risks and the plan.

  3. CThe tax rate, the largest legal cost

    Tax is one requirement among many, such as labor and licensing rules.

  4. DThe home country’s laws and rules, applied in the same way to the new operations

    Home-country laws do not replace the laws of the new country where operations take place.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section C, Topic 3, p.5; The IIA, Global Internal Audit Standards (2024), Standard 1.3 Legal and Ethical Behavior; Standard 9.1 Understanding Governance, Risk Management, and Control Processes

10An employee with heavy personal debts tells a colleague that the company underpays staff and that taking a little would only be fair, since it could be paid back later. Which fraud triangle elements are shown?

Practice question Unit: Fraud Risks

  1. AOpportunity and rationalization

    Nothing in the facts describes access or weak controls.

  2. BPressure and rationalization ✓ Correct answer

    Debt is a pressure, and calling it fair or a loan is a rationalization.

  3. CPressure and opportunity

    Pressure is present, but opportunity is not described.

  4. DOpportunity by itself

    The facts show pressure and an excuse, not opportunity.

Reference: CIA Part 1 Expanded Test Specifications (2025 syllabus, V2.09.2024), Section D, Topic 1, p.6; Internal Auditing: Assurance & Advisory Services, 6th edition

Keep preparing for Certified Internal Auditor (CIA) Part 1: Internal Audit Fundamentals

See also: Accounting & Tax Exams

All Accounting & Tax Exams (14)