Examination Questions And Correct

Certified Internal Auditor (CIA) Practice Examination Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

Part 1: Essentials of Internal Auditing

1. The primary purpose of internal auditing is to:

• Detect fraud within the organization
• Evaluate and improve the effectiveness of risk management, control,

and governance processes

• Prepare financial statements
• Ensure compliance with external regulations

Rationale: The internal audit activity’s mission per the IIA is to enhance and protect organizational value by providing risk-based and objective 1 / 4

assurance, advice, and insight. This includes improving risk management, control, and governance.

• The independence of the internal audit function is primarily achieved

through:

• The size of the internal audit staff
• The auditor’s technical competence
• The organizational placement and reporting lines of the internal audit

function

• The use of external consultants

Rationale: Functional reporting to the board or audit committee ensures

independence from management influence.

• Which of the following best defines due professional care?
• Strict adherence to audit procedures
• Following management’s expectations
• Applying the care and skill expected of a reasonably prudent and

competent auditor

• Completing audits quickly

Rationale: Due professional care means internal auditors use diligence and

competence similar to that expected of a prudent internal auditor in similar circumstances. 2 / 4

4. The Chief Audit Executive (CAE) should report functionally to:

• The Chief Executive Officer
• The Audit Committee or Board of Directors
• The Chief Financial Officer
• The Risk Management Department

Rationale: Functional reporting to the board preserves independence and

objectivity of internal audit.

5. The Standards require internal auditors to maintain:

• Political awareness
• Financial expertise
• Independence and objectivity
• Operational control

Rationale: Standards 1100–1130 emphasize independence (organizational)

and objectivity (individual).

6. Assurance engagements are primarily intended to:

• Implement controls
• Support management decisions
• Provide an independent assessment on risk management, control, or

governance 3 / 4

• Design new procedures

Rationale: Assurance services offer an independent evaluation rather than

advisory input.

7. Consulting services differ from assurance services because they:

• Include audit findings
• Require sampling
• Are advisory in nature and intended to add value
• Are performed annually

Rationale: Consulting engagements provide advice or insight rather than

formal assurance conclusions.

8. A key element of quality assurance and improvement programs (QAIP) is:

• Annual budget review
• Risk assessment of auditees
• Periodic internal and external assessments
• Management’s self-assessment

Rationale: Standard 1312 requires external assessment at least once every

five years.

9. Objectivity is impaired when an internal auditor:

• Performs a consulting engagement
• / 4