Free IIA CIA Part 3 (Internal Audit Function) Quality of the Internal Audit Function Practice Questions
Quality of the Internal Audit Function on CIA Part 3 covers the quality assurance and improvement program, internal and external quality assessments, conformance reporting, and performance measurement of the function. 15% of Part 3.
71 questions37 easy29 medium5 hard2026 syllabus
Sample Questions
Question 1
Easy
Which of the following is best characterized as a leading indicator of internal audit performance?
🎉
Correct Answer: A
Solution
A is correct. Leading indicators measure the capabilities and inputs that shape future results, so a prepared candidate looks for a measure taken before the work is delivered. Training completion tracks whether the function is building the competence its plan will require, giving the chief audit executive time to act before delivery suffers. Lagging indicators, by contrast, report outcomes after the work is finished, and a balanced scorecard under Standard 12.2 combines both.
Question 2
Medium
An internal audit function adopts a key performance indicator requiring at least six reported findings per engagement. Which risk of this indicator is greatest?
🎉
Correct Answer: B
Solution
B is correct. When setting indicators and targets, the chief audit executive considers the behavior a target drives. A minimum findings count rewards volume rather than significance, so auditors can satisfy the measure by elevating minor observations, diluting the value of engagement communications and distorting management's view of risk. Targets should be tied to the outcomes the internal audit mandate seeks, and quantitative measures should be balanced with qualitative indicators such as stakeholder feedback and engagement quality reviews (Standard 12.2, Performance Measurement).
Question 3
Hard
A chief audit executive reviews four departures from the Global Internal Audit Standards identified during the year. Which departure must be disclosed to senior management and the board?
🎉
Correct Answer: C
Solution
C is correct. Disclosure to senior management and the board is required when nonconformance affects the internal audit function's overall scope or operation, and the disclosure states the circumstances, the impact, the actions taken or planned, and the rationale. Operating without a board-approved charter means the function's authority, mandate, access, and reporting lines are not formally established, which is a pervasive condition affecting the entire function and its ability to state conformance (Standards 6.2 and 12.1). Isolated documentation, archiving, or scheduling lapses are corrected through ongoing monitoring and methodology reinforcement.
FreeFellow was built by Jeffrey Ting, a credentialed actuary and CFA charterholder who passed thirteen of the hardest exams in finance on the first attempt, and paid four-figure prep fees for every one. The learning itself was always free. The price was a moat.
So he started writing his own questions, then lessons, then mock exams, until it grew into a full prep platform covering 40 finance credentials with more than 44,000 original practice questions. The name says exactly what it is: the question bank is free, and Fellow is what you become once you pass.
01
Cost shouldn't decide who gets in.
The exam is a fair gate. A four-figure prep course is not. FreeFellow takes the second gate down, so the exam is the only one left.
02
Free should mean free.
No trial clock, no email gate, no credit card. The question bank, worked solutions, lessons, and readiness score stay free, and they are enough to pass.
03
Built by someone who sat where you sit.
He paid for the big-name courses, found nothing he respected, and built the prep he wished had existed. Not a marketing team that has never sat an exam.
