This is a sample version. Full version is available for subscription from [Link].

us
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INDEX
Let’s Connect With Each Other……………………………………………………………………………….3
Preface…………………………………………………………………………………………………………………..4
A Gentle Reminder from Heart……………………………………………………………………………….6
Certified Internal Auditor (CIA) Exam Guide………………...……………………………….…..…11
Letter from Muhammad Zain…………………………………………..…………………………………..45

Section A – Engagement Planning….…..…………………………………………………….….…..….50

Section B – Information Gathering, Analysis and Evaluation….….…………………….….951
Section C – Engagement Supervision and Communication………………………………1252

About the Author………………………………………………………………………………..…….……..1453

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Let’s Connect with Each Other

[Link]

Web: [Link]
[Link]

[Link]
help@[Link]

Email: help@[Link]
help@[Link]

help@[Link]
WhatsApp (Messaging & Call): +92 311 222 4261
International Call: +92 311 222 4261
US & Canada Call: +1 646 979 0865
[Link]

Facebook: [Link]

YouTube: [Link]
[Link]

LinkedIn: [Link] [Link]

Instagram: [Link]
[Link]

Pinterest: [Link]

Special Credit For Contribution

I am grateful to Ms. Maha Zahid for being the Co-Author in this book. Special thanks to Mr. Abdullah Yousaf and Ms. Hira
Muhammad for their sincere efforts in making this book a reality.
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PREFACE
Every thread of knowledge woven into the tapestry of my understanding is a divine gift from the Supreme
Architect, the Almighty Allah. It is His infinite mercy and blessing that empowered me to conquer the daunting
peaks of the Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Internal
Auditor (CIA), and Masters of Business Administration (MBA) exams in my maiden attempt.

My heart thrums with gratitude as I recall the unceasing support of my family. Their enduring sacrifices – the
surrendering of resources and time – have fueled my growth in all dimensions: moral, physical, and spiritual. I
extend a profound token of thanks to my mentors, whose wisdom, experience, and teachings have sculpted
me into the person I am today.

This book reflects the symphony of wisdom bestowed upon me by Allah, in conjunction with the tapestry of
experiences and learnings acquired over a lifetime. My thirst for knowledge has led me on countless quests,
diving into the endless seas of information found on the Internet, Blogs, Social Media, and Wikipedia. To all
the scribes and curators of Google, Blogs, Social Media, and Wikipedia, I owe a debt of gratitude for feeding
my insatiable curiosity and illuminating my path with their wisdom.

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Yet, as I delved deeper, a profound realization dawned upon me: our human understanding is but a mere
droplet in the boundless ocean of knowledge yet to be explored and discovered. This very human curiosity
sparks a cascade of innovations, discoveries, and ideas, nudging us ever so slightly closer to the vast unknown.

In the grand scheme of this infinite wisdom, if my words happen to echo any copyrighted material, I assure
you it is nothing but a coincidence. Any perceived resemblance is unintentional, a serendipitous concurrence
of thoughts and ideas.

I warmly welcome you, dear readers, to freely explore this book for your personal growth and enlightenment,
devoid of any time or device constraints. To make this treasure trove of knowledge accessible to all, I have
consciously kept the price minimal, thereby encouraging genuine engagement with the material.

I strive for accuracy and integrity in every word that this book carries, yet I am aware of the fallibility of
human knowledge. If you stumble upon any discrepancies or inaccuracies, I graciously invite your critique and
correction for future updates.

In the spirit of learning and wisdom, I implore our Lord, the Supreme Master and Judge, to bless us with
greater understanding and wisdom in this world, and eternal grace in the Life Hereafter. Ameen. 5
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A GENTLE REMINDER FROM HEART

Dear Reader,

This book you hold is not merely a compilation of words and knowledge—it is a labor of love, a reflection of
tireless devotion, and a gift of insight shaped through countless hours of discipline, reflection, and sincere
effort. Every line, every concept, every question is woven with care, intending to serve your journey toward
excellence and success.

As you benefit from its content, we humbly request you to uphold the sacred values of integrity,
professionalism, and gratitude. Sharing or distributing this material without permission may seem like an act
of generosity, but in truth, it silently erodes the foundation upon which future knowledge is built. It
discourages creation, disrespects the creator's effort, and—most importantly—plants the seed of unethical
practice.

Remember, helping someone through unlawful means may seem noble on the surface, but it teaches them to
seek shortcuts, to rely on what is not rightfully earned, and to repeat the same act with others. This cycle not
only harms the creator—it subtly harms the learner too.

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A GENTLE REMINDER FROM HEART

Let us instead be among those who protect, honor, and uplift the knowledge we receive. By respecting the
rights of authors and educators, you become a partner in their mission and a light-bearer in your own path of
learning.

May God bless your intentions, guide your actions, and grant you success in both this world and the
Hereafter.

Ameen.

With heartfelt gratitude,

Zain Academy

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CERTIFIED INTERNAL AUDITOR (CIA) EXAM GUIDE

The Certified Internal Auditor (CIA) certification offers many benefits. No matter where you are in your career, there
are many ways the CIA certification can help you move forward.

Becoming certified will

• Unlock career opportunities

• Demonstrate your expertise
• Increase earning potential
• Build confidence
• Improve knowledge and skills
• Earn the respect of peers

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THE INSTITUTE OF INTERNAL AUDITORS (IIA)

The Institute of Internal Auditors (IIA ) is an international professional association that was organized in 1941 to
serve and develop the internal audit community. It holds conferences; provides continuing professional education
courses; publishes newsletters, books, and magazines; and offers several professional certifications, of which the CIA
is most in demand. The IIA acts as the voice of the internal audit profession.

THE PROFESSION

The CIA is the only globally recognized certification in the internal audit and compliance industry. According to The
IIA, by earning it, “individuals demonstrate their professionalism in the internal audit field,” and will have gained
“educational experience, information, and business tools that can be applied immediately in any organization or
business environment.”

The IIA publishes the major guidance for the profession, including The International Professional Practices
Framework (IPPF ) and the Global Internal Audit Standards.

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MEMBERSHIP

Membership with The IIA isn’t required to become a CIA, but we recommend it because it provides many benefits.

Chapters and affiliated institutes around the world hold regular meetings, seminars, and conferences that encourage
members to network with peers, develop professional contacts, and stay informed about current issues and
practices in internal auditing.

Local institutes charge their own membership fees. Contact your local institute directly to obtain specific
information.

THE IIA REQUIREMENTS TO BECOME CERTIFIED

Auditors must meet requirements known collectively as the four Es (Education, Ethics, Examinations, and
Experience) in order to become a Certified Internal Auditor. Once your application to the CIA program is approved,
you have 3 years to complete the program requirements. However, you can apply for a program eligibility or
hardship extension. Each extension has its own duration, procedures, and fees.

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a. Education

• Master’s degree or equivalent; or

• Bachelor’s degree or equivalent; or
• Active Internal Audit Practitioner designation holder; or
• Equivalent experience – i.e. candidates without any of the above education levels may be approved into the CIA
program if they already have five years of internal audit experience.

Note for Students – Students can apply and sit for the exam before they meet the education requirement. However,
the education requirements must be met within 3 years of applying.

b. Ethics

Agree to abide by The IIA’s standards of ethics and professionalism and continually exhibit high moral and
professional character.
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c. Examinations

Pass all three parts of the CIA exam. This is the requirement candidates spend the most time concerned about. But
don’t worry! We offer step by step advice that will set you up for exam success.

d. Experience

The required amount of internal audit experience (or equivalent) depends on your educational background.

Master’s degree or equivalent – 1 year

Bachelor’s degree or equivalent – 2 years
Active Internal Audit Practitioner designation holder – 5 years

THE CIA EXAM

The CIA exam is created by The IIA’s Professional Certification Department, which is comprised of the Professional
Certifications Board (PCB) and the Exam Development Committee (EDC), to reflect current knowledge and practices
in the internal auditing profession. 15
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Together, these entities write the syllabus and questions, grade the exams, and ensure the integrity of the exam
process by maintaining its non-disclosed status. The EDC is not affiliated with any review course provider. All review
courses, including Zain, have access to the same IIA syllabus that the EDC makes publicly available.

The CIA exam focuses on internal audit topics, such as internal controls and risk management, auditing processes,
control frameworks, fraud, documentation standards, engagement planning and procedures, IT and security
systems, governance and business controls, and regulatory issues.

CIA EXAM STRUCTURE AND CONTENT

The total exam is 6.5 hours of testing (2.5 hours for Part 1 and 2 hours each for Parts 2 and 3), plus 5 minutes per
part for a survey. Each of the three exam parts tests candidates on a few different content areas, called “sections.”
Each of these sections is further broken down according to the syllabus released by The IIA.

IIA RELEASED QUESTIONS

Test questions are released to review course providers and the general public when they are retired (i.e., no longer
used on the exam). Actual CIA exam questions and other exam content remains non-disclosed and is not available to
anyone, not even The IIA at large. 16
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Review providers rely on the publicly available exam syllabus, the IPPF, retired CIA exam questions, and their
knowledge of the trends currently developing in the field to equip candidates to pass the exam. At Zain, we rely on
our staff of professional auditors, accountants, and editors (which includes CIAs, CPAs, and CMAs), as well as
contributions from professors at prestigious universities to ensure our review materials are of the highest quality.

CIA PART 1 – INTERNAL AUDIT FUNDAMENTALS

a. Section A – Foundations of Internal Auditing – 35% weightage

b. Section B – Ethics and Professionalism – 20% weightage

c. Section C – Governance, Risk Management and Control – 30% weightage

d. Section D – Fraud Risks – 15% weightage

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CIA PART 2 – INTERNAL AUDIT ENGAGEMENT

a. Section A – Engagement Planning – 50% weightage

b. Section B – Information Gathering, Analysis and Evaluation – 40% weightage

c. Section C – Engagement Supervision and Communication – 10% weightage

CIA PART 3 – INTERNAL AUDIT OPERATIONS

a. Section A – Internal Audit Operations – 25% weightage

b. Section B – Internal Audit Plan – 15% weightage

c. Section C – Quality of the Internal Audit Function – 15% weightage

d. Section D – Engagement Results and Monitoring – 45% weightage

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HOW THE CIA EXAM IS SCORED

The exam is computer-graded. You’ll receive a printed unofficial score report before you leave the testing center, so
you’ll know right away whether you’ve passed. Scores are determined by converting the value of questions
answered correctly to a scale that ranges from 250 to 750. The IIA has set the scaled passing score at 600, which
corresponds to the minimum level of knowledge deemed acceptable for new CIAs.

HOW TO APPLY FOR THE CIA EXAM

The CIA exam is offered year-round with no blackout dates, so you can take it as soon as you’re prepared, whenever
is convenient. There are four things you must do before you can sit for an exam part.

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a. Create a profile in the IIA’s Certification Candidate Management System (CCMS)

Go to The IIA’s website and create an account. You do not need to become a member, but you should consider it
before applying for the CIA Certification Program.

With your IIA account, go to CCMS on The IIA’s website and create your profile. The IIA will send you a Candidate ID
number and information on how to activate your account.

b. Apply for the CIA Certification Program

Upload the required documents for program approval.

• Proof of Identity – The IIA will accept a copy of your government-issued driver’s license, passport, military ID,
alien registration card, or government-issued local language ID.
• Proof of Education – The IIA will accept a copy of your degree or official transcripts, a letter from your college or
university confirming your degree, or a letter from an academic evaluation service confirming your degree level.
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c. Register for an Exam Part

Once you have met all entry requirements and your application is approved, log into CCMS and register for the exam
part you wish to take. Once payment for your exam registration is complete, your exam authorization window is 180
days or until your program expiration date. You must schedule the exam part for which you registered within your
180-day window.

d. Schedule Your Exam at Pearson VUE

Log into your CCMS account to schedule your exam at Pearson VUE. Alternatively, you can schedule your
[Link]/iia/contact/

appointment by calling Pearson VUE customer service ([Link]/iia/contact/). You will be able to
select the preferred testing center location.

Review your appointment details to ensure you have the correct time, date, and location before you finalize your
payment. Pearson VUE will send you an email confirming your payment and your appointment details.

Note for Rescheduling Exam - You can change your appointment through CCMS or by contacting Pearson VUE up to
48 hours prior to your confirmed appointment, but there is a fee for rescheduling.
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CIA EXAM FEES

While we recommend everyone join The Institute of Internal Auditors, all non-students should definitely join The IIA
before beginning CIA exam registration because IIA members save a total of $525 on exam fees compared to non-
members. (Students pay even lower fees than IIA members.)

Aside from saving on exam fees, IIA membership affords many other benefits, such as access to the latest
information about the profession; complimentary members-only webinars with CPE; member-only rates on in-
person, online, and on-demand training; and exclusive networking opportunities. Additionally, North American IIA
members have their CPE reporting fee waived.
Non-Member Member Student
Application Fee USD 240 USD 120 USD 65
CIA Part 1 Exam Fee USD 445 USD 310 USD 245
CIA Part 2 Exam Fee USD 415 USD 280 USD 215
CIA Part 3 Exam Fee USD 415 USD 280 USD 215
Total USD 1,515 USD 990 USD 740
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IIA MEMBERSHIP FEES

IIA membership comes with its own annual fees, which vary by membership type. If you pass all 3 parts of the CIA
exam in one year, which is completely possible, your certification fee savings will more than offset the membership
fee for one year.

But if passing takes longer, the amount you’ve paid for IIA membership could exceed the amount saved on CIA
certification. That said, remaining an IIA member will still bring multiple benefits beyond just exam fee savings.

IIA membership fees are slightly more complicated for members of the international community because
certification processes, pricing, and taxes may vary in countries where exams are administered through agreements
with IIA affiliates. Contact your local IIA Institute to verify pricing in your country.

Membership Type Fee

Individual USD 290
Educator USD 200
Student USD 0
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INVESTMENT IN ZAIN CIA STUDY MATERIALS

[Link] Product Price

1. CIA Part 1 Study Guide 2025 USD 89
2. CIA Part 1 Exam Questions 2025 USD 89
3. CIA Part 2 Study Guide 2025 USD 89
4. CIA Part 2 Exam Questions 2025 USD 89
5. CIA Part 3 Study Guide 2025 USD 89
6. CIA Part 3 Exam Questions 2025 USD 89
7. CIA Exam Review Complete Set 2025 – (this includes USD 299
the study guides and exam questions for all the three
parts mentioned above in 45% discounted pricing.

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FREE CIA STUDY RESOURCES

Get access to sample of Zain’s CIA Study Guides and Exam Questions by filling out a form on
[Link]

[Link]

I highly recommend that the candidates pay their dues through DEBIT CARD only. This way, you will be free from all
bank claims and will be much relieved. The target must be to clear the exams on 1st Attempt so that the examination
fee is paid only once, and benefits of opportunity costs can be derived.

REMEMBER to subscribe to Zain’s study guide and exam questions as they are economical, comprehensive, and
result oriented.

ALSO, REMEMBER that a discount of 45% is offered to candidates for subscribing to all three parts together.
However, if funds availability is an issue, then subscribe for each part separately to get the time benefit.

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PREPARING FOR THE CIA EXAM

Success on the CIA Exam requires a systematic approach to your preparations and exam-day strategy. For most
candidates, we recommend beginning with Part 1 and proceeding in order. Sign up to take one part at a time so you
can focus all your efforts toward passing that one part. Candidates should plan to complete all three parts in 6
months.

TIME ALLOCATION

Candidates have to give at least three hours on daily basis and 6 hours on weekends for 2 months continuously to
each CIA Exam part.

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HOW TO STUDY

You should study when and where you study best. The exam center is very quiet, so candidates should complete
practice exams in a similar environment. Find study areas that are calm, well-lit, and distraction- free, and schedule
your study time for when you are most productive and able to focus. If you’re a morning person, don’t expect to get
your best studying done into the late hours of the night. Make CIA review your top priority until you’ve passed the
exam.

Zain CIA Review makes it easy to study anywhere. Access your course on your phone, tablet, or laptop. Look for
nearby libraries, hotels, coffee shops, and restaurants that have free Wi-Fi, a good ambiance, and comfortable
chairs. If your commute is long or you use public transportation, consider spending that time listening to video
lectures.

SET ATTAINABLE GOALS

Make realistic and manageable goals to help stay motivated. Just take it one step at a time. Breakdown “passing the
CIA exam” into smaller, more achievable parts. It’s easy to feel overwhelmed by everything in front of you, but
breaking your exam preparation into manageable blocks makes passing simple. Have an idea of how much you want
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to accomplish in each study session and hold yourself to that goal.
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YOU NEED A CIA PREP COURSE

You need a review course to pass. Preparing for the exam on your own would require you to spend nearly as much
time figuring out what to study and searching for materials as it would for you to study for the exam.

We’ve already done that work for you. More specifically, our team of internal audit experts, mostly professors at
top-ranking accounting schools with actual industry experience, has made sure every topic is taught in a way you
can easily understand.

Zain CIA Review features the most comprehensive coverage of exam content using proven techniques and
innovative new technology to help you study smarter.

Our system is all about breaking your studies down into simple steps and straightforward recommendations, and our
easy-to-use platform gives you responsive feedback so you always know where you are, what’s next, and how far
you have left to go.

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ZAIN CIA REVIEW 2025 WITH LATEST FEATURES

Zain CIA Review 2025 have two prime resources and two secondary resources.

a. Prime Resources

• CIA Study Guides 2025 - have key learning outcomes, questioning mind study points, true false questions, fill in
the blanks, one word answer questions, matching questions, memory aids and mnemonics, mind maps and
practical examples.

• CIA Exam Questions 2025 – have challenging multiple choice questions (of higher IQ levels) with explanations of
all answer choices.

b. Secondary Resources
Zain Academy’s YouTube channel

• CIA Learning Videos – they are accessible from Zain Academy’s YouTube channel
WhatsApp Email

• CIA Support and Guidance – candidates can ask unlimited questions either through the WhatsApp or Email till
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they pass the exams.
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HOW TO ATTEMPT MULTIPLE CHOICE QUESTIONS

a. Start by reading the sentence actually asking the question.

This is usually the last sentence of the question stem. Use the question to decide what information in the stem is
essential and what is extraneous.

b. Read the answer choices carefully

• Even if the first answer appears to be the correct choice, do not skip the remaining answer choices. Questions
often ask for the “best” of the choices provided.
• Treat each answer choice as a true/false question as you analyze it.
• In computational items, distractors are carefully calculated to represent common mistakes. Be careful, and
double-check your computations if time permits.

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c. Determine the best available answer

By exam day, you’ll likely have an idea of what the correct answer will look like before you see it. As you practice
answering questions and get more familiar with the concepts being tested, you’ll hone your intuition and get better
at identifying what exactly you’re being asked.

Even if you’re stumped, and sometimes you might be, don’t panic. You don’t need to get every single question right
to pass.

NOTE: Never leave a question unanswered.

Your score is based on the number of questions you answer correctly. You are not penalized for answering a
question wrong, which is why we recommend educated guessing. Remember to click the “Mark for Review” button
in the upper-right corner of your screen for every question you guess on and plan on returning to later if time
allows.

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EDUCATED GUESS TECHNIQUE

Do not agonize over any one item. If you encounter a CIA exam question that is ambiguous or unfamiliar, make an
educated guess.

Educated Guessing involves the three steps.

a. Rule out easily identifiable distractors.

b. Speculate on the rationale behind the question.

c. Select the best answer or your best guess between equally appealing options.

You have a 25% chance of answering the question correctly by blindly guessing. For many multiple-choice questions,
a few answer choices can be eliminated with minimal effort, which increases your odds considerably of getting the
answer right.

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Once you’ve made your guess, mark that question and move on. You can return to the question during your review,
but you should not waste time agonizing over your best guess before you’ve answered all of the exam questions.

When you review, unless you made an obvious mistake or computational error, try to avoid changing the answer at
the last minute. Your first guess is usually the most intuitive.

During your study sessions, read the answer explanations for all of the questions so you can see the results of your
guess and get the information you need to avoid guessing next time.

LEARN FROM YOUR MISTAKES THROUGHOUT YOUR STUDIES

Learning from questions you answer incorrectly is very important. Each question you answer incorrectly during your
practice exams is an opportunity to avoid missing actual test questions on your CIA exam.

Carefully study the answer explanations provided until you understand why the original answer you chose was
wrong, as well as why the correct answer is right. You should even do this for questions where you made an
educated guess. Mistakes are more memorable than getting a question right, so this will help inform your intuition
for future questions and sharpen that skill before exam day.
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COMMON ERRORS BY CANDIDATES

I. Misreading the question stem

II. Not understanding what is required
III. Making a math error
IV. Applying the wrong rule or concept
V. Getting distracted by one or more of the answer choices
VI. Eliminating answers from consideration too quickly
VII. Not knowing the topic tested

The first six reasons can be fixed by practicing and working through the questions systematically and keeping calm
on test day. The seventh is just a matter of giving yourself enough time to learn the material.

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ZAIN TIME MANAGEMENT SYSTEM FOR CIA PART 1

The key to finishing 125 MCQs in 150 minutes for Part 1 is answering them at a rate of one minute per question. At
this rate, you can complete all the questions in 125 minutes and have 25 minutes left over to review any marked
questions.

If you average one minute per question during the exam, you’ll begin a new set of 20 questions every 20 minutes.

ZAIN TIME MANAGEMENT SYSTEM FOR CIA PART 2 AND 3.

Both Part 2 and Part 3 require you to answer 100 MCQs in 120 minutes. Though the amount of questions and total
testing time differ from Part 1, we still recommend answering MCQs at a rate of one minute per question.

By averaging one minute per question you can complete all 100 MCQs in 100 minutes. This leaves you 20 minutes
left over to review any marked questions.

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TIME MANAGEMENT ADVICE

Practice makes perfect. It’s difficult at first, but it is reasonable for most candidates to develop a multiple-choice
question- answering technique that gets them to a rate of one minute per question. The built- in review time from
this method gives you the option to spend more time on difficult questions if necessary.

Any extra time you build into your overall budget should be used wisely. Ultimately, you want to make full use of all
time available. No matter how much extra time you have left, use it purposefully and use it all; don’t leave the
testing center early.

PASSING THE CIA EXAM

You will be more confident on exam day if you know what to expect.

a. The Day before Exam Date

Drive to the testing center prior to your exam date to make sure you can easily locate it and know how to find
parking on the day of the exam. This helps eliminate a potential exam day stressor.
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b. The Day of your Exam

Plan to arrive at the Pearson VUE test center at least 30 minutes before your scheduled appointment time. When
you arrive, you will check in and present your government-issued ID.

Your ID must

• Contain your name exactly as it appears on your Pearson VUE exam appointment confirmation letter and exactly
as you provided it when applying to the program and registering for your exam
• Have a permanently affixed photo of your face
• Be current
• Be an original document

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Acceptable Forms of Identification

• Government Issued Driver’s license

• Passport
• Military ID
• Alien Registration Card
• Government Issued local language ID

Unacceptable Forms of Identification

• Employee ID / Work Badge

• University / College ID
• Insurance Card

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What to bring to Pearson Vue

• Your appointment confirmation letter from Pearson Vue

• Your registration confirmation notification from The IIA
• Your identification

c. Beginning Your Exam in Person

After you check in, you will be escorted to a computer station and given an erasable note board. There may be
candidates taking different exams in the room with you (financial exams, medical exams, etc.).

Do not start the test right away. Once you sit down, make sure you get situated by testing your pens, properly
adjusting your chair, and taking a deep breath before touching your computer. The timer does not start until you see
the first question, so take a few minutes to make sure you are in control by mentally preparing and relaxing.

After you are logged into your exam, proceed through the welcome and nondisclosure agreement screens without
delay. There is a time limit on the initial screens, and if that time limit is exceeded, the exam session will
automatically begin. 39
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If you encounter a computer problem, report it immediately to the exam proctor. Don’t try to resolve it yourself.

If you leave the testing room for any reason, you will be required to sign the test center log and show your
identification to reenter the room. Don’t forget to bring it with you!

When you finish your exam, quietly leave the testing room, return your erasable note board and markers to the
exam administrator, and collect your belongings. You will receive a printed unofficial score report upon completion
of your exam.

d. Score Reporting

Examination scores are confidential and are shared only with the candidate and The IIA. Candidates receive an
unofficial printed score report before leaving the test site. For a passing exam, the score report will only show a
passing designation. It will not show a score.

For a failing exam, the score report will show a scaled score between 250 and 599. In addition, diagnostic
information detailing the section(s) in which the candidate needs improvement is provided. This information will aid
future exam preparation. An email will be sent when official results are available in CCMS.
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RETAKING THE EXAM

The IIA’s Retake Policy limits the number of times you may take the exam to eight (8) during your program eligibility
window.

The earliest appointment date that you will be able to schedule and retake a failed exam is 30 days from the date
you last took that exam. You must complete a new registration with payment to retake a failed exam. If you do not
complete your certification program within the program eligibility window, you will forfeit all fees paid and exam(s)
passed.

You are not permitted to retake an exam that you previously passed, unless your certification program window has
expired. If you need to retake an exam or exam part that you previously passed (because your certification program
window expired), the earliest exam appointment date that you can select will be 30 days from the date you last took
that exam.

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CIA CANDIDATE MISCONDUCT AND CHEATING

The IIA and its Professional Certifications Board consider candidate misconduct related to the certification process a
serious offense. If you violate any of the testing rules, attempt to remove test items from the center, or are
disruptive to other candidates, your exam may be terminated, your test scores may be invalidated, and you may be
disqualified from participation in all IIA certification programs. The IIA may also take other actions to the extent
permitted by law.

THE IIA’S NONDISCLOSURE POLICY

As part of The IIA’s nondisclosure policy, a confidentiality and nondisclosure statement must be accepted before
each part is taken. This statement is reproduced here to remind all CIA candidates about The IIA’s strict policy of
nondisclosure, which Zain supports and upholds.

AFTER YOU PASS

Congratulations! Once you pass the exam and meet all other program requirements, you will be eligible to receive
your certificate.
42
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MAINTAIN YOUR CIA CERTIFICATION

After certification, CIAs are required to maintain and update their knowledge and skills. Practicing CIAs must meet
Annual Certification Renewal requirements and complete 40 hours of Continuing Professional Education (CPE) every
year by December 31. The CPE requirement begins the calendar year after you receive your CIA certification.

Complete the Annual Certification Renewal process in CCMS by signing a statement that all applicable requirements
have been met. Processing fees vary based on location, membership status, and the method you use to report.

ENJOY YOUR CIA BENEFITS

A higher earning potential and better opportunities are yours once you achieve certification. Display your
certification proudly! Use a digital badge and get your electronic or printed certificate from The IIA. Log into CCMS
and complete the Certificate Order Form to request it. Plus, you can opt in to be listed in The IIA Certification
Registry, a public record that can help potential employers verify your certification.

43
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SHARE YOUR FEEDBACK

We value and depend on feedback from CIAs and CIA candidates to know how to improve our materials, specifically
on topics to be strengthened and/or added in our course.
Zain Academy’s Google Page

When you have completed the exam, please post a review and rating on Zain Academy’s Google Page We want to
know how well we prepared you for your testing experience, plus your feedback can help guide the next batch of
CIA candidates.

44
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LETTER FROM MUHAMMAD ZAIN

22 May 2025

Dear Future CIAs,

May the Peace, Blessings, and Mercy of Allah be upon you—and especially upon the Noble Messenger, Prophet
Muhammad (Peace Be Upon Him), his blessed Family, and his noble Companions.

You were not created to simply exist—you were created to excel. To rise above the ordinary. To leave a mark of
purpose, integrity, and contribution on the world.

Deep within your soul lies a universe waiting to be explored—full of intelligence, drive, and potential gifted by Allah
(SWT). The journey to becoming a Certified Internal Auditor is not merely academic. It is spiritual. It is intellectual. It
is transformational. And it begins now.

We are entering a golden age—a time where intelligence is multiplied, technology is evolving at the speed of light,
and opportunities abound for those who are prepared. In this new era, professionals who combine ethical
grounding with analytical strength will lead nations, organizations, and communities to success.

45
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This is your invitation to be among them.

The CIA Part 2 Exam Questions 2025 is not just another exam resource. It is your launchpad.

Crafted with precision and foresight, this guide is designed for the challenges of today’s internal audit landscape—
cybersecurity, AI, global governance, and strategic risk. But more than that, it speaks to the needs of a new kind of
professional—someone driven by values, vision, and a hunger to make a difference.

Here’s what makes it exceptional:

• 700 High-Quality MCQs with detailed explanations of all answer choices—designed to test and train a higher
level of critical thinking.

46
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• Fully integrated with the CIA Part 2 Study Guide 2025—which includes:

o Study Points

o True/False Questions

o Fill-in-the-Blanks

o One-Word Answer Questions

o Real-World Practical Examples

o Mnemonics, Mind Maps, and Key Learning Outcomes

All materials are delivered in an instantly downloadable, printable PDF format, accessible on any device, with
lifetime access and zero limitations.

But the real difference? It’s not just in the content—it’s in the commitment.

47
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The Power Guarantee

I will support you until you pass—no matter how long it takes.

Ask unlimited questions—via WhatsApp or Email—and receive direct, personal support. There are no barriers, no
hidden charges—just sincere guidance rooted in the intention to help you succeed, both in the exam and beyond.

At Zain Academy, we don’t just prepare you for a certification—we prepare you for impact.

We believe your success in the CIA exam can be a catalyst:

Toward entrepreneurship
Toward financial independence
Toward a life free from debt and compromise
Toward service to humanity with honesty and excellence

Let this certification be more than a credential. Let it be a statement of who you are—an individual who dares to
live with purpose, who learns as a form of worship, and who leads with both mind and soul.

48
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We urge you to think beyond employment. Embrace ownership. Embrace responsibility. Embrace freedom. Invest in
gold, silver, and land—not liabilities. And most importantly, live light, live ethically, and build a legacy of value and
virtue.
The future does not belong to those who wait.
It belongs to those who believe, who begin, and who become.

Let every hour you dedicate to study become a source of blessings. Let every concept you master elevate you
spiritually and professionally. And let this journey be your stepping stone to both World success and Hereafter
reward.

This work is humbly dedicated to Prophet Muhammad (Peace Be Upon Him)—a mercy to all the worlds. May every
benefit that flows from this effort become a source of continuous reward in my grave—Ameen.

With love, care, and unwavering belief in your success,

Muhammad Zain
Founder, Zain Academy

49
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SECTION A –
ENGAGEMENT
PLANNING
50% Weightage and 450 MCQs
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 1
Which of the following is the primary reason internal auditors must understand general
business concepts?

A. To perform financial statement audits

B. To ensure external auditors follow compliance procedures
C. To provide valuable insights and objective guidance to management and the board
D. To design the organization’s IT infrastructure

51
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 1
CORRECT ANSWER IS C . Its Explanation is

Internal auditors need business understanding to provide insights that add value and support organizational objectives.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Financial statement audits are typically performed by external auditors.
Explanation for Choice B:
Internal auditors assess internal processes, not external auditor procedures.
Explanation for Choice D:
IT infrastructure design is outside the internal auditor’s scope.

52
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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 2
Which department is primarily responsible for ensuring enough cash flow for operations?

A. Human Resources
B. Research and Development
C. Finance and Accounting
D. Sales and Marketing

53
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 2
CORRECT ANSWER IS C . Its Explanation is

Finance and Accounting ensures there’s sufficient cash for operations.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
HR manages people, not cash flow.
Explanation for Choice B:
R&D focuses on innovation, not cash management.
Explanation for Choice D:
Sales and Marketing generate revenue but don’t directly manage cash flow.

54
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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 3
In the COSO framework, which component involves evaluating whether controls are
operating as intended?

A. Control Environment
B. Control Activities
C. Monitoring
D. Risk Assessment

55
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 3
CORRECT ANSWER IS C . Its Explanation is

Monitoring assesses the functioning of controls over time.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
The control environment sets the tone but doesn’t assess functionality.
Explanation for Choice B:
These are the procedures, not the evaluators.
Explanation for Choice D:
Risk assessment identifies and evaluates risks, not control effectiveness.

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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 4
What is the main objective of business process outsourcing?

A. Eliminate the need for management oversight

B. Achieve cost savings and operational efficiency
C. Reduce the number of employees
D. Eliminate the internal audit function

57
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 4
CORRECT ANSWER IS B . Its Explanation is

Outsourcing aims to enhance efficiency and reduce costs.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Management must still oversee outsourced processes.
Explanation for Choice C:
Staff reductions may occur but are not the primary goal.
Explanation for Choice D:
Outsourcing internal audit is rare and must be carefully managed.

58
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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 5
Which COSO component includes policies and procedures that mitigate risks?

A. Risk Assessment
B. Control Activities
C. Information and Communication
D. Control Environment

59
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 5
CORRECT ANSWER IS B . Its Explanation is

Control activities are designed to mitigate risks.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Risk assessment identifies and evaluates risks but doesn’t implement procedures.
Explanation for Choice C:
Communication facilitates execution but isn't a control itself.
Explanation for Choice D:
The environment sets tone but doesn't directly mitigate risks.

60
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 6
Which risk response strategy is used when an organization decides not to engage in a risky
activity?

A. Transfer
B. Avoidance
C. Reduction
D. Acceptance

61
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 6
CORRECT ANSWER IS B . Its Explanation is

Avoidance means eliminating the risk by not undertaking the activity.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Transfer shifts risk (e.g., insurance) but doesn’t eliminate it.
Explanation for Choice C:
Reduction lowers the risk but still accepts some exposure.
Explanation for Choice D:
Acceptance is doing nothing despite the risk.

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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 7
Which of the following BEST describes the function of the control environment in the
COSO framework?

A. It assesses the effectiveness of risk responses

B. It identifies risks related to operational objectives
C. It sets the tone of the organization, influencing the control consciousness
D. It ensures communication flows freely between departments

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Section A – Engagement Planning

ANSWER TO QUESTION NO. 7
CORRECT ANSWER IS C . Its Explanation is

The control environment is the foundation influencing the overall control culture.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
That’s monitoring.
Explanation for Choice B:
That’s part of risk assessment.
Explanation for Choice D:
That’s related to information and communication.

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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 443
Which approach helps internal auditors assess the resilience of controls during significant
operational changes?

A. Supplier vetting
B. Stress testing
C. Role reclassification
D. Risk appetite recalibration

935
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Section A – Engagement Planning

ANSWER TO QUESTION NO. 443
CORRECT ANSWER IS B . Its Explanation is

Stress tests simulate disruptive conditions to evaluate control effectiveness.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Supplier vetting is relevant for procurement risks.
Explanation for Choice C:
Role adjustments are structural, not evaluative.
Explanation for Choice D:
Recalibrating appetite is strategic, not control-testing focused.

936
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Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 444
A key challenge in a decentralized structure from a risk management perspective is:

A. Slower adaptation to local changes

B. Inability to delegate responsibilities
C. Inconsistent application of control policies
D. Redundant communication layers

937
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 444
CORRECT ANSWER IS C . Its Explanation is

Units may interpret or apply controls differently.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Decentralized structures adapt quickly to local conditions.
Explanation for Choice B:
These structures rely on delegation.
Explanation for Choice D:
Redundancy is more common in hierarchical structures.

938
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 445
How does organizational culture directly impact the control environment?

A. It dictates the layout of the office for process efficiency

B. It determines internal audit sampling procedures
C. It shapes employee behaviors and attitudes toward compliance
D. It reduces the need for periodic risk assessments

939
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 445
CORRECT ANSWER IS C . Its Explanation is

Culture influences ethics, accountability, and adherence to controls.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Office layout is not directly cultural.
Explanation for Choice B:
Audit procedures are technical, not cultural.
Explanation for Choice D:
Culture supports but doesn’t eliminate risk monitoring needs.

940
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 446
What is the most effective method for tracking risks that arise due to staff turnover and
restructuring?

A. Annual financial analysis

B. Static audit plans
C. Continuous monitoring and KPIs
D. Exclusive reliance on internal control questionnaires

941
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 446
CORRECT ANSWER IS C . Its Explanation is

Ongoing monitoring and indicators help spot risks early.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Financials may not reveal control risks timely.
Explanation for Choice B:
Static plans don’t respond to changes.
Explanation for Choice D:
Questionnaires are limited without active monitoring.

942
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 447
What does the "tone at the top" refer to in evaluating risk culture?

A. The visual branding of the internal audit function

B. The CEO’s social media presence
C. Senior management’s commitment to ethical behavior and control enforcement
D. The color scheme used in risk reporting dashboards

943
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 447
CORRECT ANSWER IS C . Its Explanation is

Leadership’s behavior sets expectations and influences the entire organization’s culture.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Branding has no impact on control effectiveness.
Explanation for Choice B:
Online presence is irrelevant unless related to ethics.
Explanation for Choice D:
Aesthetics don’t impact tone.

944
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 448
What is the best mitigation strategy for new workflow automation risks?

A. Outsourcing the audit to third parties

B. Ignoring the risks due to assumed efficiencies
C. Conducting control walkthroughs and system compatibility reviews
D. Relying solely on employee feedback

945
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 448
CORRECT ANSWER IS C . Its Explanation is

Walkthroughs and reviews reveal gaps in new systems.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Risk should be addressed internally.
Explanation for Choice B:
Automation introduces new vulnerabilities.
Explanation for Choice D:
Feedback is useful but not comprehensive alone.

946
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 449
In assessing control effectiveness, which of the following is most indicative of a well-
functioning control?

A. It is inexpensive to implement
B. It detects and prevents the targeted risk consistently
C. It was recommended by external consultants
D. It is aligned with outdated company policies

947
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 449
CORRECT ANSWER IS B . Its Explanation is

A good control reliably addresses the risk it was designed for.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Cost-efficiency is desirable, but not at the expense of effectiveness.
Explanation for Choice C:
External advice is helpful, but effectiveness must be tested.
Explanation for Choice D:
Alignment with current, not outdated, policies is needed.

948
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

MULTIPLE CHOICE QUESTION NO. 450
Which of the following is a true statement regarding control environments?

A. They are established once and remain unchanged over time

B. They include only tangible processes like procedures and checklists
C. They are influenced by organizational culture, structure, and leadership
D. They are monitored only during year-end audits

949
 This is a sample version. Full version is available for subscription from [Link]

Section A – Engagement Planning

ANSWER TO QUESTION NO. 450
CORRECT ANSWER IS C . Its Explanation is

Control environments are shaped by structural, cultural, and leadership dynamics.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Control environments evolve with the organization.
Explanation for Choice B:
They include intangible elements like tone and behavior.
Explanation for Choice D:
Monitoring should be ongoing.

950
 This is a sample version. Full version is available for subscription from [Link]

SECTION B –
INFORMATION
GATHERING, ANALYSIS
AND EVALUATION
40% Weightage and 150 MCQs
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 1
Which of the following characteristics best describes reliable information?

A. Information that is logically connected to the purpose of the engagement.

B. Information that allows the internal auditor to perform walkthroughs efficiently.
C. Information that is obtained directly by the internal auditor and free from bias.
D. Information that is subjective and based on testimonial evidence.

952
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 1
CORRECT ANSWER IS C . Its Explanation is

Reliable information is factual, current, and free from bias—especially when obtained directly or from independent
sources.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
This describes relevant information, not reliable.
Explanation for Choice B:
This pertains to audit technique efficiency, not reliability.
Explanation for Choice D:
Testimonial evidence is the least reliable form and often subjective.

953
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 2
An internal auditor is evaluating whether a sample size is adequate to support a
conclusion. Which attribute of information is the auditor most directly assessing?

A. Relevance
B. Reliability
C. Sufficiency
D. Authenticity

954
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 2
CORRECT ANSWER IS C . Its Explanation is

Sufficiency relates to whether enough evidence has been collected to support conclusions.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Relevance assesses logical connection to the objective.
Explanation for Choice B:
Reliability concerns accuracy and freedom from bias.
Explanation for Choice D:
Authenticity is a subset of reliability, not the main attribute being assessed.

955
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 3
Which source of evidence provides the highest level of persuasiveness?

A. Testimonial evidence from a senior employee

B. Observation of a process
C. Confirmation received from a third party
D. Physical inspection by the internal auditor

956
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 3
CORRECT ANSWER IS D . Its Explanation is

Physical inspection is considered the most persuasive form of audit evidence.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Testimonial evidence is the least persuasive.
Explanation for Choice B:
Observation is persuasive but not as strong as direct physical inspection.
Explanation for Choice C:
Confirmations are reliable but not as persuasive as firsthand evidence.

957
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 4
What type of evidence does vouching most directly provide?

A. Completeness
B. Relevance
C. Existence
D. Accuracy

958
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 4
CORRECT ANSWER IS C . Its Explanation is

Vouching supports the existence or occurrence assertion by going backward from records to source documents.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Tracing, not vouching, supports completeness.
Explanation for Choice B:
Relevance is a quality attribute, not a specific assertion.
Explanation for Choice D:
Accuracy may be tested, but it’s not the main assertion validated by vouching.

959
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 5
Which of the following is a primary advantage of internal control questionnaires?

A. They provide direct evidence about control design.

B. They reduce the need for interviews.
C. They enhance engagement scope understanding and promote self-evaluation.
D. They are more flexible than interviews in capturing audit evidence.

960
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 5
CORRECT ANSWER IS C . Its Explanation is

Internal control questionnaires help organizations understand engagement scope and promote control awareness.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
They provide indirect evidence, not direct.
Explanation for Choice B:
They supplement, not replace, interviews.
Explanation for Choice D:
Interviews are more flexible than questionnaires.

961
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 6
An internal auditor traces shipping documents to sales records. What is the auditor
testing?

A. Validity
B. Occurrence
C. Existence
D. Completeness

962
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 6
CORRECT ANSWER IS D . Its Explanation is

Tracing tests completeness by ensuring all documents are recorded.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Validity overlaps with occurrence but isn’t the specific assertion tested here.
Explanation for Choice B:
This would be vouching, not tracing.
Explanation for Choice C:
Existence is tested by vouching from sales records to shipping docs.

963
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 7
What is a potential drawback of using a checklist during an audit?

A. It enhances auditor independence.

B. It ensures flexibility in the audit process.
C. It provides a false sense of security that all relevant areas are covered.
D. It increases the probability of nonresponse bias.

964
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 7
CORRECT ANSWER IS C . Its Explanation is

A checklist may mislead the auditor into thinking every critical aspect has been addressed.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Checklists have no impact on independence.
Explanation for Choice B:
They reduce flexibility due to their structured nature.
Explanation for Choice D:
Nonresponse bias is a concern with surveys, not checklists.

965
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 144
Which of the following is most likely a segment summary?

A. “The internal control over procurement is unsatisfactory.”

B. “A review of purchase orders showed 5 errors in 50 samples.”
C. “This section covers vendor selection and contract management findings.”
D. “We recommend segregation of duties in the accounts department.”

1238
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 144
CORRECT ANSWER IS C . Its Explanation is

Segment summaries introduce the content of a workpaper section.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
That’s a conclusion.
Explanation for Choice B:
That’s a specific finding.
Explanation for Choice D:
That’s a recommendation.

1239
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 145
Which is TRUE about tick marks in audit workpapers?

A. They are decorative elements in electronic templates

B. They are used to highlight headings in reports
C. They symbolize audit procedures performed
D. They are only relevant in paper-based audits

1240
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 145
CORRECT ANSWER IS C . Its Explanation is

Tick marks indicate steps taken (e.g., traced, vouched, recalculated).

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Tick marks are functional, not decorative.
Explanation for Choice B:
Not related to formatting.
Explanation for Choice D:
Still highly relevant in electronic audits — even more so with digital tools.

1241
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 146
Which of the following examples demonstrates the use of evaluation criteria?

A. Testing if invoices are authorized using a sample of 40

B. Noting that 10% of transactions exceeded budget
C. Comparing control procedures against company policy
D. Interviewing staff to assess understanding of controls

1242
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 146
CORRECT ANSWER IS C . Its Explanation is

Evaluation criteria are standards (e.g., policies) used for comparison.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
That’s a procedure, not a comparison against a benchmark.
Explanation for Choice B:
A statistical result, not necessarily an evaluation against criteria.
Explanation for Choice D:
Interviews gather input but don’t serve as evaluation benchmarks.

1243
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 147
Which of the following most enhances transparency and accountability in the internal
audit process?

A. Use of cloud-based dashboards

B. Standardized engagement templates
C. Thorough and organized documentation of workpapers
D. Conducting unannounced audits

1244
Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 147
CORRECT ANSWER IS C . Its Explanation is

Well-prepared workpapers demonstrate evidence-based conclusions and accountability.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Dashboards support visibility but not necessarily audit integrity.
Explanation for Choice B:
Templates help standardization but not full transparency.
Explanation for Choice D:
Surprise audits serve a different purpose (detection), not documentation.

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Section B – Information Gathering, Analysis and
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Evaluation
MULTIPLE CHOICE QUESTION NO. 148
Which statement best describes the purpose of a root cause analysis?

A. To identify the number of errors in a sample

B. To determine which policy was violated
C. To understand why a control failure occurred
D. To finalize the recommendation section of the report

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Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 148
CORRECT ANSWER IS C . Its Explanation is

Root cause analysis digs deeper to understand why issues arose.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
That’s a finding, not an analysis.
Explanation for Choice B:
Identifying a policy violation is part of criteria comparison.
Explanation for Choice D:
Recommendations follow root cause analysis — not the same step.

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Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 149
In a final communication, stating that “controls over sales discounts need improvement” is
an example of:

A. An audit finding
B. An engagement conclusion
C. An evaluation criterion
D. A summary

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Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 149
CORRECT ANSWER IS B . Its Explanation is

This is a judgment based on findings, which makes it a conclusion.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Findings are factual (e.g., “unauthorized discounts observed”).
Explanation for Choice C:
Criteria are benchmarks, not judgments.
Explanation for Choice D:
Summaries group findings — this is an evaluative statement.

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Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
MULTIPLE CHOICE QUESTION NO. 150
Which of the following best illustrates the connection between findings, conclusions, and
recommendations?

A. Findings are listed after recommendations

B. Conclusions are objective facts and do not change
C. Recommendations are based on the significance and root cause of findings
D. Recommendations are optional if management disagrees

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Section B – Information Gathering, Analysis and
This is a sample version. Full version is available for subscription from [Link]

Evaluation
ANSWER TO QUESTION NO. 150
CORRECT ANSWER IS C . Its Explanation is

Recommendations stem from analyzing the significance and root cause of findings.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Sequence matters less than logic — recommendations must follow conclusions.
Explanation for Choice B:
Conclusions involve professional judgment — they are not always fixed.
Explanation for Choice D:
Recommendations must still be offered regardless of initial agreement.

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This is a sample version. Full version is available for subscription from [Link]

SECTION C –
ENGAGEMENT
SUPERVISION AND
COMMUNICATION
10% Weightage and 100 MCQs
Section C – Engagement Supervision and
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Communication
MULTIPLE CHOICE QUESTION NO. 1
Which of the following best explains why effective engagement supervision is essential for
internal auditing?

A. It allows the CAE to delegate all responsibilities.

B. It reduces the need for engagement planning.
C. It ensures objectives are met and staff develop professionally.
D. It replaces the requirement for professional skepticism.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 1
CORRECT ANSWER IS C . Its Explanation is

Effective supervision ensures audit objectives are achieved, quality standards are upheld, and auditors grow professionally.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Delegation is part of supervision but not the core reason it is essential.
Explanation for Choice B:
Engagement planning remains a necessary component regardless of supervision.
Explanation for Choice D:
Supervision supports, but does not replace, the need for professional skepticism.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 2
During engagement planning, which of the following is the supervisor not primarily
responsible for?

A. Approving the engagement work program

B. Monitoring post-engagement performance reviews
C. Allocating resources according to auditor competencies
D. Ensuring engagement objectives align with preliminary risk assessment

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 2
CORRECT ANSWER IS B . Its Explanation is

Post-engagement performance reviews occur after the engagement; while supervisors contribute, they are not the
primary focus during planning.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Supervisors must approve the engagement work program during planning.
Explanation for Choice C:
Resource allocation is a key part of engagement planning and supervision.
Explanation for Choice D:
Alignment of objectives with risk assessment is a planning task.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 3
The most appropriate reason for documenting supervisor reviews of audit workpapers is
to:

A. Reduce the time required for final report preparation

B. Comply with external financial audit requirements
C. Demonstrate accountability and quality control
D. Prevent auditors from using professional judgment

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 3
CORRECT ANSWER IS C . Its Explanation is

Documentation of supervisory reviews enhances transparency, accountability, and supports QAIP.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Documentation may help efficiency, but it’s not the primary reason.
Explanation for Choice B:
Internal audits are not governed by external financial audit requirements.
Explanation for Choice D:
Professional judgment is encouraged, not restricted.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 4
According to the IIA, what is the key role of the supervising auditor regarding workpapers?

A. Minimizing the need for staff development

B. Ensuring workpapers support audit conclusions
C. Adjusting the organization’s risk appetite
D. Preparing risk registers

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 4
CORRECT ANSWER IS B . Its Explanation is

The supervisor must ensure that workpapers substantiate the audit findings and conclusions.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Supervisors are expected to foster, not minimize, development.
Explanation for Choice C:
Risk appetite is determined by senior management, not audit supervisors.
Explanation for Choice D:
Risk registers are typically maintained by risk management functions.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 5
Which of the following must be included as evidence of supervisory review of audit
workpapers?

A. Signed engagement letter

B. Engagement client satisfaction survey
C. Reviewer initials and review checklists
D. Peer benchmarking data

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 5
CORRECT ANSWER IS C . Its Explanation is

Reviewer initials and standardized checklists document supervisory review.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Engagement letters are part of audit planning, not supervisory review.
Explanation for Choice B:
Satisfaction surveys relate to client feedback, not documentation of supervision.
Explanation for Choice D:
Benchmarking is not part of workpaper review evidence.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 6
What is the primary objective of assigning qualified personnel to audit tasks during
supervision?

A. To allow management to reduce audit budgets

B. To enhance social bonding in the team
C. To ensure the audit objectives are effectively met
D. To rotate team members regularly

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 6
CORRECT ANSWER IS C . Its Explanation is

Assigning qualified personnel ensures tasks are completed effectively, contributing to audit success.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Budget efficiency is a consideration, but not the primary objective.
Explanation for Choice B:
Team cohesion helps, but qualification ensures competence.
Explanation for Choice D:
Rotation may be helpful but isn’t the primary reason for assignments.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 7
Which of the following is true about the use of review notes during workpaper review?

A. They should only be communicated verbally.

B. They must be discarded immediately after use.
C. They help clarify issues and must be resolved or documented.
D. They should be used only by external auditors.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 7
CORRECT ANSWER IS C . Its Explanation is

Review notes document questions and responses, ensuring clarity and resolution.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Review notes should be documented, not only verbal.
Explanation for Choice B:
They should be archived or securely discarded per policy, not immediately.
Explanation for Choice D:
Internal auditors and supervisors use review notes as part of the internal audit process.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 95
Why is maintaining a standard distribution list important for audit communications?

A. To reduce printing costs

B. To ensure recipients are aware of external regulations
C. To standardize communication flow to relevant recipients
D. To comply with tax authority rules

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 95
CORRECT ANSWER IS C . Its Explanation is

Standard lists ensure consistent, relevant, and timely distribution of engagement results.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
These are unrelated to audit communication efficiency.
Explanation for Choice B:
These are unrelated to audit communication efficiency.
Explanation for Choice D:
These are unrelated to audit communication efficiency.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 96
Which of the following best describes formal communication?

A. Rumors passed through the grapevine

B. Conversations at the water cooler
C. Engagement planning memoranda
D. Social media posts from employees

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 96
CORRECT ANSWER IS C . Its Explanation is

Memoranda are structured, documented, and official.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
These are informal and unstructured.
Explanation for Choice B:
These are informal and unstructured.
Explanation for Choice D:
These are informal and unstructured.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 97
What is the CAE’s role when management fails to act on high-risk audit findings?

A. Do nothing unless legally required

B. Revise the audit report to reduce severity
C. Escalate concerns through the appropriate channels
D. Remove the findings from the final report

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 97
CORRECT ANSWER IS C . Its Explanation is

Escalation is essential when serious risks remain unaddressed.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
These actions undermine audit integrity and violate standards.
Explanation for Choice B:
These actions undermine audit integrity and violate standards.
Explanation for Choice D:
These actions undermine audit integrity and violate standards.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 98
Which of the following communication outcomes indicates the highest level of
effectiveness?

A. Management reads the report

B. Stakeholders acknowledge receipt
C. The board uses the findings to take corrective action
D. Audit reports are archived for compliance

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 98
CORRECT ANSWER IS C . Its Explanation is

Action taken based on audit findings is the ultimate measure of effectiveness.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
These reflect process completion, not impact.
Explanation for Choice B:
These reflect process completion, not impact.
Explanation for Choice D:
These reflect process completion, not impact.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 99
How should audit teams address scope limitations during fieldwork?

A. Proceed with the remaining audit areas silently

B. Notify the board immediately
C. Communicate the issue to the CAE and assess impact
D. Request the scope be changed to exclude the issue

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 99
CORRECT ANSWER IS C . Its Explanation is

Escalation to the CAE is the appropriate first step.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Ignoring scope limitations is unacceptable.
Explanation for Choice B:
Notification may eventually reach the board but not immediately.
Explanation for Choice D:
Exclusion without evaluation compromises audit integrity.

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
MULTIPLE CHOICE QUESTION NO. 100
What is the purpose of executive summaries in final engagement communication?

A. To provide training to staff

B. To present high-level findings to senior leaders
C. To list all internal audit procedures
D. To disclose whistleblower identities

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Section C – Engagement Supervision and
This is a sample version. Full version is available for subscription from [Link]

Communication
ANSWER TO QUESTION NO. 100
CORRECT ANSWER IS B . Its Explanation is

Executive summaries highlight key points and support decision-making at the top.

INCORRECT CHOICES EXPLANATION

Explanation for Choice A:
Not the purpose of an executive summary.
Explanation for Choice C:
Not the purpose of an executive summary.
Explanation for Choice D:
Not the purpose of an executive summary.

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This is a sample version. Full version is available for subscription from [Link]