CIA-Part1-2025

CIA-Part1-2025 practice questions, page 3 of 5, with answer review and explanations.

Question 11

What must a chief audit executive do if significant changes to regulations may affect the nature of internal audit services?

  1. Discuss the changes with the external auditors.
  2. Discuss the changes with the CEO, who is responsible for escalating to the board.
  3. Discuss the changes with the board and senior management.
  4. No action is needed because the changes are unlikely to affect the work of internal auditors.

Question 12

Who is responsible for the design and implementation of the processes and structures for organizational governance?

  1. The board.
  2. The CEO.
  3. The chief financial officer
  4. Operational management.

Question 13

Which of the following is the primary reason that the quality assurance and improvement program should be detailed in the internal audit charter?

  1. To justify training costs in the internal audit function’s annual budget.
  2. To demonstrate the intent to fulfill responsibilities with proficiency and due professional care.
  3. To conform with mandatory IIA guidance regarding internal audit charters.
  4. To describe the significance of internal audit independence and the activities promoting it.

Question 14

Which of the following statements related to organizationwide risk management and control is true?

  1. Organizationwide risk management is a function or department.
  2. Organizationwide risk management addresses more than internal control.
  3. Organizationwide risk management sets adequate controls to ensure all risks are avoided.
  4. Organizationwide risk management is the checklist used during the risk and control self-assessment exercise.

Question 15

An internal auditor is working on an audit engagement of the inventory management process. There have been difficulties getting explanations from stakeholders regarding discrepancies between physical and system inventory records. Recently, the engagement supervisor informed the internal auditor that there was a whistleblowing report alleging that inventory theft was occurring. Which of the following skills and competencies would be most helpful for the internal auditor to fulfill the responsibilities of this audit engagement?

  1. The ability to investigate fraud, pursue litigation, and recover assets.
  2. The ability to understand the characteristics of fraud and the techniques used to commit fraud, and the various fraud schemes and scenarios.
  3. The ability to remain objective, calm, and rational during the audit engagement and the whistleblowing investigation.
  4. The ability to be agile and incorporate new risks when they are identified.