Certified Internal Auditor - Part 1 The Internal Audit Activitys Role in Governance Risk and Control

Here you have the best IIA IIA-CIA-Part1 practice exam questions

  • You have 1175 total questions across 235 pages (5 per page)
  • These questions were last updated on March 14, 2026
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Question 1 of 1175
The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives. This situation has the greatest negative impact on which of the following internal control components?
Answer

Suggested Answer

The suggested answer is B.

The situation described has the greatest negative impact on the control environment component of internal control. The control environment sets the tone for the organization, influencing the control consciousness of its people. It includes the integrity, ethical values, and competence of the entity’s people; management's philosophy and operating style; and the way management assigns authority and responsibility, and organizes and develops its people. In this case, the reluctance to deny reimbursement for non-allowable charges due to fear of losing top sales representatives indicates a weak control environment where ethical standards and integrity are being compromised.

Community Votes2 votes
BSuggested
50%
A
50%
Question 2 of 1175
Which of the following factors affects the control risk of a company?
Answer

Suggested Answer

The suggested answer is B.

Unusual pressures on management can affect the control risk of a company. Control risk is the risk that a company’s internal controls will not prevent or detect a material misstatement. If management is under unusual pressures, they may override internal controls or manipulate financial information, increasing the overall control risk. Other factors such as technological obsolescence, complex accounts, or segregation of duties are either unrelated to control risk or directly related to other types of risks such as operational or inherent risks.

Question 3 of 1175
Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?
Answer

Suggested Answer

The suggested answer is C.

Question 4 of 1175
Which of the following is an appropriate role for the board in governance?
Answer

Suggested Answer

The suggested answer is B.

One appropriate role for the board in governance is ensuring that the financial statements are understandable, transparent, and reliable. This aligns with the board's responsibility to provide oversight and ensure accountability for financial reporting, thereby safeguarding the interests of stakeholders. Preparing written policies, assisting internal audits, or developing litigation strategies are tasks more aligned with management or specialist roles rather than the governance oversight provided by the board.

Question 5 of 1175
According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?

I. Oversight of Work -

Coordination of Activities -

Chief audit executive -

Senior management -

II. Board -

Chief audit executive -

III. Chief financial officer -

Chief audit executive -

IV. Board -

Chief financial officer -
Answer

Suggested Answer

The suggested answer is B.

According to the International Professional Practices Framework, the appropriate division of responsibilities for the coordination of internal and external audit efforts should involve oversight of the work by the board and the coordination of activities by the chief audit executive. This ensures that the top-level governance (the board) is overseeing the audit process while operational coordination is managed by the professional responsible for auditing.

About the IIA IIA-CIA-Part1 Certification Exam

About the Exam

The IIA IIA-CIA-Part1 (Certified Internal Auditor - Part 1 The Internal Audit Activitys Role in Governance Risk and Control) validates your knowledge and skills. Passing demonstrates proficiency and can boost your career prospects in the field.

How to Prepare

Work through all 1175 practice questions across 235 pages. Focus on understanding the reasoning behind each answer rather than memorizing responses to be ready for any variation on the real exam.

Why Practice Exams?

Practice exams help you familiarize yourself with the question format, manage your time, and reduce anxiety on the test day. Our IIA-CIA-Part1 questions are regularly updated to reflect the latest exam objectives.