Skip Ribbon Commands
Skip to main content
Sign In
The Institute of Internal Auditors North AmericaBreadcrumb SeparatorCertificationBreadcrumb SeparatorCIA CertificationBreadcrumb SeparatorSample Exam Questions
Certifications & Qualifications
Expand/CollapseNew to Certification?

Expand/CollapseCurrently Enrolled?

Expand/CollapseAlready Certified?

Expand/CollapseCIA Certification
Get Started
Internal Audit Practitioner
Internal Audit Practitioner FAQ
Eligibility Requirements
Exam Syllabus
Sample Exam Questions
CPE Requirements
Prepare and Practice for Exams
Practice Tests
Exam Review Courses

Expand/CollapseQIAL Qualification

Expand/CollapseCGAP Certification
Expand/CollapseCFSA Certification
Expand/CollapseCCSA Certification
Expand/CollapseCRMA Certification
Expand/CollapseBEAC Certification

Access CCMS & User Guide
Administrative Directives
CBT Exam Tutorial
CCMS Single Sign On
Certification Corner News
Certifications Merchandise
Candidate Eligibility Extension
Document Upload Portal
Download Handbook
Exam Language Offerings
Pricing Structure
Recognized CPE Providers
Social Media & Open Badging
Certification FAQ

Certified Internal Auditor® (CIA®) Sample Exam Questions​

Part 1 Sample Exam Questions
  •   According to IIA guidance, independence of the internal audit activity is achieved through which of the following?
    1. Staffing and supervision.
    2. Continuing professional development and due professional care.
    3. Human relations and communications.
    4. Organizational status and objectivity.

    View answer
    1. Incorrect. Staffing and supervision relate to the professional proficiency of the internal audit activity.
    2. Incorrect. Continuing professional development and due professional care relate to the professional proficiency of the internal auditor.
    3. Incorrect. Human relations and communications relate to the professional proficiency of the internal auditor.
    4. Correct. According to Practice Advisory 1110-1, organizational status and objectivity permit members of the internal audit activity to render the impartial and unbiased judgments essential to the proper conduct of engagements.
  •   An organization’s accounts receivable turnover rate decreased from 7.3 to 4.3 over the last three years. Which of the following is most likely the cause of the decrease?
    1. An increase in the discount offered for early payment.
    2. A more liberal credit policy.
    3. A change in net payment due, from 30 to 25 days.
    4. Increased cash sales.

    View answer
    1. Incorrect. This should have the opposite effect.
    2. Correct. With a liberal credit policy, customers would be taking longer to pay (365/4.3 compared to 365/7.3).
    3. Incorrect. This should have the opposite effect.
    4. Incorrect. This is irrelevant, since cash sales will have no impact.
  •   Considering the differences between statistical and judgmental sampling, which of the following statements about statistical sampling is true?
    1. No judgment is required, because everything is computed according to a formula.
    2. A smaller sample can be used.
    3. More accurate results are obtained.
    4. Population estimates can be made with measurable reliability.

    View answer
    1. Incorrect. Judgment is needed for confidence levels and sample unit definition.
    2. Incorrect. A statistical sample may result in either a smaller or larger sample.
    3. Incorrect. There is no way to determine which method would produce greater accuracy.
    4. Correct. The only way to have measured reliability (stated in terms of confidence intervals) is to use a statistical sample.
Part 2 Sample Exam Questions
  •   Two internal auditors left the organization and cannot be replaced due to budget constraints. Which of the following is the least desirable option for completing future audit engagements?
    1. Use self-assessment questionnaires to address audit objectives.
    2. Employ IT solutions for audit planning, sampling, and documentation.
    3. Eliminate consulting engagements from the audit plan.
    4. Fill vacancies with personnel from operating departments that are not being audited.

    View answer
    1. Incorrect. Self-assessment questionnaires are a means of efficiently addressing the objectives of certain internal audits.
    2. Incorrect. Use of technology is an appropriate means of achieving efficiencies in audit execution.
    3. Correct. The audit schedule should only be reduced as a last resort once all other viable alternatives have been explored, including the request for additional resources.
    4. Incorrect. Using operating personnel with internal audit interest and corporate experience is an appropriate way to enhance internal audit resources.
  •   Which of the following fraudulent entries is most likely to be made to conceal the theft of an asset?
    1. Debit expenses, and credit the asset.
    2. Debit the asset, and credit another asset account.
    3. Debit revenue, and credit the asset.
    4. Debit another asset account, and credit the asset.

    View answer
    1. Correct. Most fraud perpetrators would attempt to conceal their theft by charging it against an expense account.
    2. Incorrect. Debiting the stolen asset account would be going in the wrong direction to conceal an asset theft.
    3. Incorrect. An entry decreasing revenue would be unusual and would stand out.
    4. Incorrect. This entry would not permanently conceal the fraud. It would simply shift the irreconcilable balance to another asset account.
  •   Which of the following statements are true regarding audit workpaper documentation for a fraud investigation?
    1. All incriminating evidence should be included in the workpapers.
    2. All important testimonial evidence should be reviewed to ensure that it provides sufficient basis for the conclusions reached.
    3. If interviews are held with a suspected perpetrator, written transcripts or statements should be included in the workpapers.

    1. 1 and 2 only.
    2. 1 and 3 only.
    3. 2 and 3 only.
    4. 1, 2, and 3.

    View answer
    1. Correct. All incriminating evidence should be included.
    2. Correct. All important testimonial evidence should be reviewed.
    3. Correct. Written transcripts or statements from interviews held with suspected perpetrators should be included.
Part 3 Sample Exam Questions
  •   Which of the following is the best strategy for limiting production delays caused by equipment breakdown and repair?
    1. Schedule production based on capacity planning.
    2. Plan maintenance activity based on an analysis of equipment repair work orders.
    3. Preauthorize equipment maintenance and overtime pay.
    4. Establish a preventive maintenance program for all production equipment.

    View answer
    1. Incorrect. Scheduling production based on capacity utilization ignores other important factors such as demands.
    2. Incorrect. Budgeting maintenance department activities based on previous work orders will not prevent equipment breakdowns and repairs.
    3. Incorrect. Standing authorizations of work orders and overtime will not address the problem posed.
    4. Correct. A preventive maintenance program will reduce equipment breakdowns and repairs.
  •   Franchising and horizontal mergers are commonly used strategies in which of the following industry environments?
    1. Emerging industries.
    2. Declining industries.
    3. Fragmented industries.
    4. Mature industries.

    View answer
    1. Incorrect. See answer “C”.
    2. Incorrect. See answer “C”.
    3. Correct. Strategies such as chaining, franchising, and horizontal mergers are commonly used in fragmented industries, because there are low barriers to entry. Companies in fragmented industries face many opportunities for differentiation but each opportunity for competitive advantage is small.
    4. Incorrect. See answer “C”.
  •   Which of the following costs do management need to consider when introducing a new product or substituting a new product for an existing one?
    1. Costs of retraining employees.
    2. Costs of acquiring new ancillary equipment.
    3. Write-offs due to undepreciated investment in old technology.
    4. Capital requirements for changeover.

    1. 1 and 3 only.
    2. 1, 2, and 4 only.
    3. 2, 3, and 4 only.
    4. 1, 2, 3, and 4.

    View answer
    1. Correct. Costs that management should consider would include costs of retraining employees.
    2. Correct. Costs that management should consider would include costs of acquiring new ancillary equipment.
    3. Correct. Management should consider the costs of writing off the old technology when introducing a new project. The undepreciated balance of the old technology will be written down to zero, causing an expense to be recorded. If the new product weren't implemented, the old technology would continue to be depreciated over the remaining life. Although there isn't an out-of-pocket cost, there is an impact to net income.
    4. Correct. Costs that management should consider would include capital requirements and research and development costs of the changeover.

IMPORTANT! CCMS users go here to prepare for Single Sign On.

Access CCMS

Candidates from the following countries must refer to their local IIA Institute web-site or contact their local representative for more information about local certification processes:

The information contained on this website pertains to all other countries.