Below are challenging, examinable, essay-based MCQ questions with on Objectivity, Integrity, Independence, Proficiency, Confidentiality, and Due Professional Care, strictly aligned with the CIA Part 1 (Foundations of Internal Auditing) – 2025 syllabus.
CIA PART 1 – ETHICS & ATTRIBUTE STANDARDS
(Objectivity • Integrity • Independence • Proficiency • Confidentiality)
Section A…. 15MCQ Essay based…
Q1. (Integrity vs Objectivity – Subtle Threat)
An internal auditor discovers minor but recurring policy violations by a department head who is also a close mentor and instrumental in the auditor’s career growth. The violations are unlikely to be material individually but indicate a pattern of non-compliance. The auditor considers excluding these findings to avoid damaging the relationship.
Which principle of the IIA Code of Ethics is most directly compromised if the auditor omits the findings?
A. Independence
B. Confidentiality
C. Integrity
D. Proficiency
Correct Answer: C. Integrity
Explanation:
Integrity requires honesty and courage to report facts truthfully, regardless of personal consequences. The issue is not bias in judgment (objectivity) but deliberate suppression of known facts, which violates integrity.
Q2. (Objectivity vs Independence – Exam Favorite Trap)
An internal auditor is assigned to audit the procurement function. Two years ago, the auditor worked in the same function but had no involvement in current procurement decisions. Management insists that independence is impaired.
What is the best CIA-compliant conclusion?
A. Independence is impaired because of prior employment
B. Objectivity is impaired but independence is not
C. Neither independence nor objectivity is impaired
D. Independence is not impaired, but objectivity should be assessed and safeguards applied
Correct Answer: D
Explanation:
Independence relates to the organizational reporting line, not personal history. Prior involvement creates a potential objectivity threat, requiring disclosure and safeguards—not automatic disqualification.
Q3. (Confidentiality – Legal vs Ethical Conflict)
During an engagement, an internal auditor uncovers evidence of illegal data manipulation. Senior management instructs the auditor not to disclose the information externally to avoid reputational damage. No law explicitly requires reporting.
What is the auditor’s most appropriate action?
A. Maintain confidentiality and follow management’s instruction
B. Report the issue only if required by law
C. Escalate internally according to governance protocols
D. Immediately disclose the issue to regulators
Correct Answer: C
Explanation:
Confidentiality does not override governance responsibilities. The auditor must escalate internally (e.g., audit committee). External disclosure occurs only when legally mandated.
Q4. (Proficiency vs Due Professional Care)
An internal auditor accepts an IT audit engagement despite limited technical knowledge, believing general audit skills are sufficient. The auditor does not consult specialists and fails to identify critical system vulnerabilities.
Which standard is primarily violated?
A. Objectivity
B. Proficiency
C. Independence
D. Confidentiality
Correct Answer: B
Explanation:
Proficiency requires possessing or obtaining necessary knowledge. Due professional care relates to diligence, but the root failure is lack of competence.
Q5. (Independence – Organizational Reporting Line)
The Chief Audit Executive (CAE) reports administratively and functionally to the CFO. The CFO frequently modifies audit scopes and delays issuing reports.
Which CIA principle is most seriously threatened?
A. Objectivity
B. Integrity
C. Independence
D. Proficiency
Correct Answer: C
Explanation:
Functional reporting to management compromises organizational independence. The CAE should report functionally to the board or audit committee.
Q6. (Objectivity – Gifts & Familiarity Threat)
An internal auditor accepts a high-value gift from an auditee after completing an engagement. The audit report was already issued and unbiased.
What is the best CIA-based assessment?
A. Acceptable because the audit is complete
B. Acceptable if disclosed to management
C. Unacceptable as it impairs objectivity in appearance
D. Acceptable if local company policy allows it
Correct Answer: C
Explanation:
Objectivity includes appearance of bias, not just actual bias. High-value gifts create familiarity and self-interest threats.
Q7. (Integrity – Selective Reporting)
An auditor reports control weaknesses accurately but deliberately delays issuing the report to align with management’s preferred timing for public disclosures.
Which ethical principle is violated?
A. Objectivity
B. Integrity
C. Confidentiality
D. Proficiency
Correct Answer: B
Explanation:
Integrity requires timely and honest communication. Deliberate delay for strategic advantage undermines ethical conduct.
Q8. (Confidentiality – Personal Benefit)
An internal auditor uses non-public audit information to advise a friend to avoid investing in the organization.
Which action best describes this situation?
A. Acceptable personal judgment
B. Breach of confidentiality
C. Lack of objectivity only
D. Violation only if financial gain occurs
Correct Answer: B
Explanation:
Using confidential information for any personal advantage, direct or indirect, violates confidentiality—financial gain is not required.
Q9. (Proficiency – Continuous Improvement)
Which situation best demonstrates non-compliance with proficiency standards?
A. Auditor relies on past experience instead of updated standards
B. Auditor seeks expert help for complex valuation
C. Auditor attends regular professional training
D. Auditor uses automated audit tools
Correct Answer: A
Explanation:
Proficiency requires continuous development. Outdated knowledge is a direct violation.
Q10. (Objectivity vs Advocacy – Very Tricky)
An internal auditor recommends a specific vendor solution during consulting work and later audits the implementation of that solution.
What is the most appropriate CIA position?
A. No issue since consulting was allowed
B. Objectivity is impaired and safeguards are required
C. Independence is automatically impaired
D. Confidentiality is violated
Correct Answer: B
Explanation:
Advocacy creates self-review threat. Objectivity—not independence—is affected. Disclosure and safeguards are mandatory.
Q11. (Integrity – Pressure from Senior Management)
Management pressures an internal auditor to soften language in an audit report to “maintain harmony,” though findings remain factually correct.
What should the auditor do?
A. Modify wording to maintain relationships
B. Refuse and escalate to governance
C. Accept changes if conclusions remain same
D. Delay report issuance
Correct Answer: B
Explanation:
Integrity requires resisting undue influence and escalating ethical pressure to appropriate governance bodies.
Q12. (Confidentiality – Accidental Disclosure)
An auditor accidentally shares sensitive audit findings with an unauthorized employee.
Which principle is breached?
A. Integrity
B. Objectivity
C. Confidentiality
D. Proficiency
Correct Answer: C
Explanation:
Intent is irrelevant. Confidentiality applies to careless or accidental disclosure as well.
Q13. (Due Professional Care vs Proficiency – Examiner Trap)
An experienced auditor fails to expand testing despite red flags due to time constraints.
Which standard is primarily violated?
A. Proficiency
B. Integrity
C. Due Professional Care
D. Independence
Correct Answer: C
Explanation:
The auditor has knowledge but fails to apply reasonable diligence and judgment, violating due professional care.
Q14. (Independence – Consulting Engagements)
Which consulting activity is most likely to impair independence?
A. Advising on risk assessment methodology
B. Facilitating control self-assessment workshops
C. Designing controls and later auditing them
D. Training staff on internal controls
Correct Answer: C
Explanation:
Designing controls creates a self-review threat, impairing independence unless strictly managed.
Q15. (Integrated Ethics Question – High Difficulty)
An internal auditor with strong technical skills intentionally withholds unfavorable findings, accepts gifts, and uses insider information socially.
Which statement best summarizes the situation?
A. Only confidentiality is violated
B. Only objectivity is impaired
C. Multiple ethical principles are violated
D. Only independence is compromised
Correct Answer: C
Explanation:
The scenario violates integrity (withholding facts), objectivity (gifts), and confidentiality (insider information) simultaneously—common CIA exam integration.
🔑 CIA EXAM TIP
• Integrity = honesty & courage
• Objectivity = unbiased mindset + appearance
• Independence = organizational freedom
• Proficiency = knowledge + skills
• Confidentiality = protect & not misuse info
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Section B…. 50MCQ…
CIA PART 1 – MCQs (50 Questions)
Topics Covered:
Integrity • Objectivity • Independence • Proficiency • Confidentiality • Due Professional Care • Code of Ethics
Q1
An internal auditor knowingly omits an immaterial error because management assures it will be corrected later.
The primary ethical violation is of:
A. Objectivity
B. Independence
C. Integrity
D. Proficiency
Answer: C
Reason: Deliberate omission = lack of honesty, regardless of materiality.
Q2
An auditor audits a process they designed three years ago but fully discloses this to the CAE.
Which statement is MOST accurate?
A. Independence is impaired
B. Objectivity threat exists and safeguards are required
C. No ethical issue exists
D. Confidentiality is violated
Answer: B
Q3
An auditor accepts a low-value promotional item during an audit.
Which factor MOST determines ethical acceptability?
A. Value of the item
B. Local law
C. Appearance of impaired objectivity
D. Timing of acceptance
Answer: C
Q4
An internal auditor reports functionally to the audit committee but administratively to the CFO.
Which principle is BEST preserved?
A. Objectivity
B. Integrity
C. Independence
D. Confidentiality
Answer: C
Q5
An auditor delays issuing a report to allow management time to “prepare explanations.”
This MOST directly violates:
A. Confidentiality
B. Integrity
C. Objectivity
D. Proficiency
Answer: B
Q6
An internal auditor uses professional skepticism but lacks technical knowledge in cybersecurity.
Which standard is MOST compromised?
A. Due Professional Care
B. Proficiency
C. Objectivity
D. Independence
Answer: B
Q7
An auditor refuses an engagement due to family relationships with the auditee.
This action BEST supports:
A. Integrity
B. Independence
C. Objectivity
D. Confidentiality
Answer: C
Q8
An auditor shares audit results internally with unauthorized staff to “raise awareness.”
Which principle is violated?
A. Integrity
B. Objectivity
C. Confidentiality
D. Independence
Answer: C
Q9
Which situation creates a self-review threat?
A. Rotating audit assignments
B. Auditing previously designed controls
C. Reporting to senior management
D. Using audit software
Answer: B
Q10
An auditor knowingly uses outdated audit standards.
This violates:
A. Proficiency
B. Integrity
C. Objectivity
D. Confidentiality
Answer: A
Q11
Management pressures an auditor to remove “harsh wording” but not findings.
The BEST response is to:
A. Agree for diplomacy
B. Escalate to governance
C. Delay the report
D. Accept wording change
Answer: B
Q12
An auditor discloses fraud only to management despite board-level reporting requirements.
Which principle is MOST affected?
A. Objectivity
B. Independence
C. Integrity
D. Confidentiality
Answer: C
Q13
An internal auditor accepts consulting work designing risk controls.
What must be done later?
A. Audit immediately
B. Avoid auditing the area
C. Apply safeguards if auditing
D. Ignore consulting role
Answer: C
Q14
Which scenario BEST demonstrates impaired independence?
A. Prior employment in auditee
B. CAE reporting to CFO functionally
C. Familiarity with auditee staff
D. Consulting engagement
Answer: B
Q15
An auditor fails to expand testing despite red flags due to time pressure.
This violates:
A. Proficiency
B. Due Professional Care
C. Objectivity
D. Integrity
Answer: B
Q16
Using confidential audit data to advise a friend informally violates:
A. Independence
B. Integrity
C. Confidentiality
D. Objectivity
Answer: C
Q17
Which action MOST preserves objectivity?
A. Declining gifts
B. Rotating audit staff
C. Reporting to audit committee
D. Maintaining competence
Answer: B
Q18
An auditor accepts management’s assurance without evidence.
Which standard is breached?
A. Objectivity
B. Proficiency
C. Due Professional Care
D. Confidentiality
Answer: C
Q19
Which is NOT part of integrity?
A. Honesty
B. Courage
C. Impartiality
D. Timeliness
Answer: C
(Impartiality relates to objectivity)
Q20
An auditor modifies conclusions to protect organizational reputation.
This violates:
A. Integrity
B. Confidentiality
C. Independence
D. Proficiency
Answer: A
Q21
Accepting gifts AFTER audit completion is:
A. Always acceptable
B. Acceptable if disclosed
C. Acceptable if immaterial
D. Unacceptable due to appearance
Answer: D
Q22
Which BEST defines independence?
A. Mental attitude
B. Technical skill
C. Organizational freedom
D. Professional judgment
Answer: C
Q23
An auditor lacks knowledge but consults a specialist.
Which principle is upheld?
A. Integrity
B. Proficiency
C. Objectivity
D. Confidentiality
Answer: B
Q24
Which creates an advocacy threat?
A. Training staff
B. Recommending vendors
C. Auditing transactions
D. Risk assessment
Answer: B
Q25
Failing to report immaterial fraud violates:
A. Proficiency
B. Integrity
C. Objectivity
D. Independence
Answer: B
Q26
An auditor leaks audit findings unintentionally.
Which principle applies?
A. Intent matters
B. Confidentiality applies regardless
C. Objectivity only
D. Integrity only
Answer: B
Q27
Professional skepticism MOST supports:
A. Integrity
B. Objectivity
C. Due Professional Care
D. Confidentiality
Answer: C
Q28
An auditor designs KPIs for management and later audits them.
This creates:
A. Familiarity threat
B. Self-interest threat
C. Self-review threat
D. Advocacy threat
Answer: C
Q29
Which is the BEST safeguard for objectivity?
A. Disclosure
B. Rotation
C. Supervision
D. All of the above
Answer: D
Q30
An auditor refuses to change findings despite CEO pressure.
This BEST demonstrates:
A. Objectivity
B. Integrity
C. Proficiency
D. Confidentiality
Answer: B
Q31
Which situation MOST threatens confidentiality?
A. Internal escalation
B. Audit committee reporting
C. Social discussion
D. Legal disclosure
Answer: C
Q32
An auditor relies on management representations alone.
This violates:
A. Integrity
B. Due Professional Care
C. Independence
D. Confidentiality
Answer: B
Q33
Independence is primarily a function of:
A. Behavior
B. Ethics
C. Reporting structure
D. Competence
Answer: C
Q34
Which activity is LEAST likely to impair objectivity?
A. Consulting
B. Prior employment
C. Staff rotation
D. Close relationships
Answer: C
Q35
Using audit results to negotiate salary violates:
A. Confidentiality
B. Integrity
C. Objectivity
D. All of the above
Answer: D
Q36
An auditor knowingly issues a misleading report.
This violates:
A. Objectivity only
B. Integrity only
C. Confidentiality only
D. Multiple principles
Answer: D
Q37
Proficiency requires:
A. Initial qualification only
B. Continuous development
C. Management approval
D. Audit experience only
Answer: B
Q38
Which threat arises from personal relationships?
A. Self-review
B. Familiarity
C. Advocacy
D. Intimidation
Answer: B
Q39
Which is a core duty of confidentiality?
A. Sharing lessons learned
B. Preventing misuse of info
C. Full transparency
D. Public disclosure
Answer: B
Q40
Time pressure NEVER justifies violating:
A. Integrity
B. Proficiency
C. Objectivity
D. Confidentiality
Answer: A
Q41
An auditor audits an area under performance incentives.
Which threat arises?
A. Advocacy
B. Self-interest
C. Familiarity
D. Intimidation
Answer: B
Q42
Which is MOST aligned with due professional care?
A. Speed
B. Compliance
C. Reasonable assurance
D. Absolute assurance
Answer: C
Q43
Ethical behavior is BEST described as:
A. Rule-based
B. Situation-based
C. Principle-based
D. Outcome-based
Answer: C
Q44
An auditor ignores minor policy breaches.
This MOST violates:
A. Proficiency
B. Confidentiality
C. Integrity
D. Objectivity
Answer: C
Q45
Which safeguard addresses independence threats?
A. Peer review
B. Training
C. Reporting to board
D. Documentation
Answer: C
Q46
Which BEST defines objectivity?
A. Neutral reporting
B. Unbiased mental attitude
C. Organizational freedom
D. Technical expertise
Answer: B
Q47
An auditor uses audit info for personal gain.
Which principles are violated?
A. Confidentiality only
B. Integrity only
C. Objectivity only
D. Multiple principles
Answer: D
Q48
Which is NOT a confidentiality exception?
A. Legal obligation
B. Professional duty
C. Personal judgment
D. Regulatory requirement
Answer: C
Q49
Which MOST threatens integrity?
A. Bias
B. Dishonesty
C. Incompetence
D. Familiarity
Answer: B
Q50
An auditor faces ethical conflict. FIRST step?
A. Resign
B. Ignore
C. Escalate through governance
D. External disclosure
Answer: C
🔥 CIA EXAM STRATEGY
• Integrity = honesty even when inconvenient
• Objectivity = mindset + appearance
• Independence = reporting line
• Proficiency ≠ due care (knowledge vs application)
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