The Realest Study Materials IIA-CIA-Part1 Dumps Updated Aug 18, 2026 [Q48-Q72]

Q48. An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices. Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors. Which course of action should the CAE follow?

Report the communication to the organization’s general counsel.

Report the instruction to the chairperson of the audit committee.

Inform the head of the organization that the investigation will continue as planned.

Inform the external auditors of the findings and the mandate to stop investigating.

Q49. A chief audit executive (CAE) is considering hiring a candidate who most recently worked for a large public accounting firm What would be the CAE’s most likely concern regarding this candidate*?

Low-level audit expertise

Narrow industry experience

MPotential conflict of interest

Weak interpersonal skills

Q50. A daily report which lists unsuccessful attempts to log on to a computer system is a:

Corrective control.

Preventive control.

Detective control.

Compensating control.

Q51. An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts asbad debts. Which of the following irregularities is the most likely cause of the auditor’s suspicion?

A much higher bad debt expense as a percentage of sales than that of previous years.

A much higher bad debt expense as a percentage of sales than that of other stores.

A much higher percentage of past-due accounts receivable than that of other stores.

A much higher percentage of past-due accounts receivable than that of previous years.

Q52. An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired.
Which of the following would be the most persuasive piece of evidence in support of the auditor’s suspicions?

Credit memos issued after year end for goods shipped before year end.

Evidence of returned goods in the shipping and receiving area.

An unusual number of customer complaints.

The results of a complete physical inventory taken at year end.

Q53. An organization has limited resources to spend on corporate social responsibility initiatives. Which is the most suitable approach to determine how these resources should be used?

Support a mix of environmental economic and social initiatives to ensure a balanced approach is taken

Survey employees and external stakeholders to see which causes are best suited to the organization.

Select corporate social responsibility initiatives that support the overall strategic goals of the organization

Conduct a financial analysis to determine where the most impact can be made with the budget available

Q54. For a new board chair who has not previously served on the organization’s board, which of the following steps should first be undertaken to ensure effective leadership to the board?

Chair should learn the current organizational culture of the company.

Chair should learn the current risk management system of the company.

Chair should determine the appropriateness of the current strategic risks.

Chair should gain an understanding of the needs of key stakeholders.

Q55. During an audit of the procurement department, the internal auditor interviewed the department manager to ask questions about the purchasing process. There have been a number of employee complaints, tips, and reports regarding the purchasing process via the organization’s whistleblower hotline. Which of the following phrases from the interviewee is most likely to raise concerns regarding potential control deficiencies or fraud risks?

“The process works the way it is mandated to work.”

“I never did it this way.”

“I cannot take more than a few days of vacation, as nobody else can perform my duties.”

“There are policies or procedures for this process.”

Q56. An internal audit activity is using the auditing-by-element approach to audit the organization’s controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

Working conditions.

Employees’ families.

Marketplace competition.

Shareholders and investors.

Q57. According to the IIA Code of Ethics, the deliberate omission of relevant information from an audit report would violate which principle?

Honesty.

Competency.

Responsibility.

Integrity.

Q58. According to IIA guidance, which of the following statements is true regarding the internal audit activity’s responsibilities in providing consulting services?

The chief audit executive is responsible for deciding the priority of consulting services in the internal audit plan

The scope of consulting services is determined primarily by the internal auditor with input from management of the area under review

The board defines the internal audit activity’s responsibilities over consulting activities

Adding value to an organization requires the internal audit activity to initiate a consulting engagement

Q59. Which of the following is an example of a risk avoidance strategy?

Outsourcing the payroll function

Installing cameras in the mailroom

Exiting a product line

Insuring all fixed assets

Q60. The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?

Intimidation threats may compromise the auditor’s objectivity due to multiple negative audit reports completed by the auditor.

The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity’s independence.

A negative cognitive bias may be in place that affects the employee’s objectivity due to the recent audits with uncorrected control deficiencies.

The auditor may have formed a cultural bias, as the department under review is in the auditor’s geographic area.

Q61. The board of directors of a newly formed organization wants to establish an ethics program.
Which of the following parties is most appropriate to assume responsibility for implementing the program?

The internal audit activity.

Business unit management.

Senior management.

This responsibility cannot be delegated.

Q62. According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?

The CAE seeks senior management approval of the internal audit charter

The CAE obtains senior management’s approval to hire staff

The CAE reports significant issues to the organization’s CEO

The CAE provides the board with an annual budget for approval

Q63. A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud?

Develop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.

Require all submitted claims to be followed by a signed statement by the dentist testifying to the fact that the claimed procedures were performed.

Send confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the insurance provider.

Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

Q64. An internal auditor would most likely judge an error in an account balance to be material if the error involves:

A data input function.

A large percentage of net income.

An unverified routine transaction.

An unusual transaction for the company.

Q65. Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.

1 and 2 only

1 and 3 only

2 and 3 only

1, 2, and 3

Q66. Which of the following lists the audit activities in the order in which they would generally be completed during a preliminary survey?
I.Write detailed audit procedures.
II.
Identify client objectives, goals, and standards.
III.
Identify risks and controls intended to prevent associated losses.
IV.
Determine relevant engagement objectives.

II, I, IV, III.

II, III, IV, I.

III, IV, II, I.

II, IV, I, III.

Q67. Upon completion of an external quality assessment, which of the following would the chief audit executive be required to report to the board?

The total time spent to accomplish the external assessment

The detailed evaluation results of the external assessment

The competency and independence of the external assessment team

The timetable and schedule of the next external assessment

Q68. The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigate. Which of the following would most likely be the next step?

Ask internal auditors to gather all relevant information evidence

Identify and interview witnesses first potential suspects later.

Conduct a fraud risk assessment to the most vulnerable areas.

Determine me competencies needed and assess whatever team members have a conflict of interest.

Q69. According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?

Consulting engagements typically involve four or five parties: the internal audit activity, engagement client, senior management, board, and sometimes the external auditor.

The scope of a consulting engagement is determined by either the engagement supervisor or chief audit executive, and it is finalized prior to beginning fieldwork.

According to the Standards, internal auditors are permitted to carry out certain management functions during a consulting engagement.

A preliminary risk assessment may not be needed for consulting engagements, because the expectations and objectives of the engagement are determined by the engagement client.

Q70. Which of the following is an example of a transaction-level control?

Human resource policies.

Tone at the top.

Reconciliations of primary accounts.

Inventory counts.

Q71. The primary reason that a chief audit executive (CAE) reviews external audit management
letters and management response is to:

Select areas to emphasize in future internal audit engagements.

Check the effectiveness of external audit resources used.

Ensure that comments in the letter are supported by evidence.

Verify that there has been no duplication of internal audit work.

Q72. Which of the following is true about corporate social responsibility (CSR)?

Social and environmental considerations are required parts of an organization’s decision making