Sample Exam Questions

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Sample Exam Questions

Certified Internal Auditor (CIA) Sample Exam

Questions
Part 1 Sample Exam Questions

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According to the International Professional Practices Framework, the independence

of the internal audit activity is achieved through:
Candidates from the following countries
must refer to their local IIA Institute website or contact their local representative for
more information about local certification
processes:

A. Staffing and supervision.

B. Continuing professional development and due professional care.
C. Human relations and communications.
D. Organizational status and objectivity.
View answer
Two internal auditors left the internal audit department who cannot be immediately
replaced due to budget constraints. Which of the following is the least desirable option
for efficiently completing future engagements, given this reduction in resources?
A. Using self-assessment questionnaires to address audit objectives.
B. Employing information technology in audit planning, sampling, and documentation.
C. Eliminating consulting engagements from the engagement work schedule.
D. Filling vacancies with personnel from operating departments that are not being
audited.

Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
China
Chinese Taiwan
Czech Republic
France
Germany
Greece
Indonesia
Italy
Japan

Korea
Malaysia
Mexico
Morocco
Netherlands
New Zealand
Norway
Philippines
Singapore
South Africa
Spain
Sweden
Switzerland
Thailand
Turkey

The information contained on the Global

IIA website pertains to all other countries.

View answer
Which of the following fraudulent entries is most likely to be made to conceal the theft
of an asset?
A. Debit expenses, and credit the asset.
B. Debit the asset, and credit another asset account.
C. Debit revenue, and credit the asset.
D. Debit another asset account, and credit the asset.
View answer

Part 2 Sample Exam Questions

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A companys accounts receivable turnover rate decreased from 7.3 to 4.3 over the last
three years. What is the most likely cause for the decrease?
A. An increase in the discount offered for early payment.
B. A more liberal credit policy.
C. A change in net payment due from 30 to 25 days.
D. Increased cash sales.
View answer
An important difference between a statistical and a judgmental sample is that with a
statistical sample:
A. No judgment is required because everything is computed according to a formula.
B. A smaller sample can be used.
C. More accurate results are obtained.
D. Population estimates with measurable reliability can be made.
View answer
Which of the following statements is correct regarding audit engagement workpaper

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Sample Exam Questions

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documentation for a fraud investigation?

I. All incriminating evidence should be included in the workpapers.
II. All important testimonial evidence should be reviewed to ensure that it provides
sufficient basis for the conclusions reached.
III. If interviews are held with a suspected perpetrator, written transcripts or statements
should be included in the workpapers.

A. I only.
B. II only.
C. II and III only.
D. I, II, and III.
View answer

Part 3 Sample Exam Questions

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A means of limiting production delays caused by equipment breakdown and repair is

to:
A. Schedule production based on capacity planning.
B. Plan maintenance activity based on an analysis of equipment repair work orders.
C. Pre-authorize equipment maintenance and overtime pay.
D. Establish a preventive maintenance program for all production equipment.
View answer
If a country uses trade quotas to overcome chronic trade deficits, the most likely
outcome would be that:
A. Unemployment and productivity rates will rise.
B. Unemployment rates will rise and productivity rates will decline.
C. Unemployment rates will decline and productivity rates will rise.
D. Unemployment and productivity rates will decline.
View answer
The difference between the required rate of return on a given risky investment and
that of a risk-free investment with the same expected return is the:
A. Risk premium.
B. Coefficient of variation.
C. Standard error of measurement.
D. Beta coefficient.
View answer
Which of the following would be of greatest concern to an auditor reviewing a policy
regarding the sale of a companys used personal computers to outside parties?
A. Whether deleted files on the hard disk drive have been completely erased.
B. Whether the computer has viruses.
C. Whether all software on the computer is properly licensed.
D. Whether there is terminal emulation software on the computer.
View answer

Part 4 Sample Exam Questions

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In the Boston Consulting Group (BCG) growth-share matrix, which strategy in the
matrix describes large generation of cash and heavy investment needed to grow and
maintain competitive positioning but net cash flow is usually modest?
A. Cash cows.
B. Question marks.
C. Dogs.
D. Stars.
View answer

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Sample Exam Questions

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In which of the following industry environments are franchising and horizontal

mergers commonly used strategies?
A. Emerging industries.
B. Declining industries.
C. Fragmented industries.
D. Mature industries.
View answer
Which of the following costs does management need to consider when introducing a
new product or substituting a new product for an existing one?
I. Costs of retraining employees.
II. Costs of acquiring new ancillary equipment.
III. Write-offs due to undepreciated investment in old technology.
IV. Capital requirements for changeover.

A. I and III only.

B. I, II, and IV only.
C. II, III, and IV only.
D. I, II, III, and IV.
View answer
Which of the following theories includes the assertion that employees may be
motivated by achievement of acceptance or esteem in the workplace?
A. Equity theory.
B. Expectancy theory.
C. Needs hierarchy theory.
D. Goal-setting theory.
View answer

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