2015 05 - new cia exam format

IIA Ottawa Chapter Lunch & Learn:

New CIA Exam FormatPresenter: Robert VenczelMay 13, 2015

Learning Objectives

� Steps to attain The IIA's Certified Internal Auditor® (CIA®) Certification

� Continuing Professional Education (CPE) Requirements for Certified Internal Auditors (CIAs)

� CIA® Exam Preparation Resources

� Study Tips

� Test-taking Myths

� Strategies for Answering Exam Questions

Certified Internal Auditor® (CIA®) Eligibility Requirements� Candidates in the CIA program agree to accept

the conditions of the program, including eligibility requirements, exam confidentiality, Code of Ethics, and Continuing Professional Education (CPE), along with other conditions enacted by The IIA's Professional Certification Board (PCB).

� Requirements◦ Education:

� CIA candidates must hold a 3- or 4-year post-secondary degree (or higher), or

� With no Bachelor’s degree from an accredited university� Two years post-secondary education and five years verified

experience in internal audit or its equivalent, OR� Seven years verified experience in internal audit or its equivalent.

Certified Internal Auditor® (CIA®) Eligibility Requirements� Requirements (continued)◦ Work Experience: CIA candidates with a 4 year

post secondary degree must obtain a minimum of 24 months of internal auditing experience or its equivalent. A Masters degree can substitute for 12 of the required 24 months.◦ Character Reference: Candidates must exhibit

high moral and professional character and must submit a Character Reference Form signed by a CIA, CGAP, CCSA, CFSA, CRMA, or the candidate's supervisor.◦ Proof of Identification: Candidates must provide

proof of identification in the form of a copy of the candidate’s official passport or national identity card.

Other Relevant Information

� Eligibility Period: Effective November 2010, the certification program’s eligibility requires candidates to complete the program certification process within four years of application approval. If a candidate has not completed the certification process within four years, all fees and exam parts will be forfeited.

� Confidentiality: The CIA exam is a non-disclosed examination. Candidates in the program agree to keep the contents of the exam confidential and therefore may not discuss the specific exam content with anyone except The IIA's Certification Department.

� Code of Ethics: CIA candidates agree to abide by the Code of Ethics established by The IIA.

� Continuing Professional Education (CPE): Upon certification, CIAs are required to maintain their knowledge and skills and stay abreast of improvements and current developments by satisfying CPE requirements.

� IIA Membership: Here in Canada, you do not have to be a member of The IIA to take the CIA exam or become a CIA.

� Job Analysis Study (JAS) conducted in 2011: Exam structure updated to 3-part exam.

CIA Exam Overview

Part 1 Part 2 Part 3

Internal Auditing Basics

Internal Audit Practice

Internal Audit Knowledge Elements

Duration: 2.5 hours Duration: 2.0 hours Duration: 2.0 hours

125 Questions 100 Questions 100 Questions

� Awareness - Candidate exhibits awareness and knowledge. Candidate is able to define terms, recognize issues, and recall facts about the issues. (Level A)

� Proficiency - Candidate is able to exhibit the competency in understanding and applying the subject matter in the workplace on a regular basis with skill and expertise. (Level P)

Knowledge Level for Exam

Focus areas:

� IIA Mandatory Guidance (P)

� Internal Control and Risk (A)

� Tools and Techniques for Conducting the Audit Engagement (P)

Part 1: Internal Auditing Basics

Part 1

Internal Auditing Basics

Duration: 2.5 hrs

125 Questions

Focus areas:

� Managing the Internal Audit Function (A and P)

� Managing Individual Engagements (P)

� Fraud Risks and Controls (A and P)

Part 2: Internal Audit Practice

Part 2

Internal Audit Practice

Duration: 2.0 hrs

100 Questions

Focus areas:

� Governance (A and P)

� Risk Management (P)

� Organizational Structure and Business Processes (A)

� Communication (A)

� Leadership (A)

� IT/Business Continuity (Aand P)

� Financial Management (A)

� Global Business Environment (A)

Part 3: Internal Audit Knowledge Elements

Part 3

Internal Audit Knowledge Elements

Duration: 2.0 hrs

100 Questions

� Definition of Internal Auditing

� Code of Ethics

� International Standards forthe Professional Practiceof Internal Auditing(the Standards)

Preparing for the Exam

Study IPPF:

� Practice Advisories

� Practice Guides

� Position Papers

The Institute of Internal Auditors’ CIA Learning System Structure

�

Resource Center

� Updates

� Test-taking tips

� Certification information

� Reference material

� Feedback

Tip #1: Discover Your Learning Style

Study Tips

Visual Auditory Kinesthetic

People who learn best by relying on their sense of sight

People who learn best by relying on their sense of hearing

People who learn best through a hands-on approach

Visual learners:

� Color-code materials

� Use flashcards

Learning Style Preferences

Auditory learners:

� Read content aloud

� Record materials and playback

� Participate in study group

Kinesthetic learners:

� Need high level of engagement

� Participate in instructor-led classes, study group

� Study while at the gym, at the park

Tip #2: Create a SmartStudy Plan

Study Tips

� Determine how many hours you need to study based on your goals, experience and study preferences.

A SmartStudy planning tool is included in the CIA Learning

System.

Tip #3: Schedule Your Study Time

Study Tips

� Build in study time into your weekly calendar or schedule.

� Don’t create an unrealistic schedule; don’t cram.

Tip #4: Find a Study Method That Works for You

Study Tips

The IIA’s CIA Learning System

� Live or online review courses available

Tip #5: Study Topics that Need the Most Work

Study Tips

Focus your attention on:

� Topics weighted most heavily on the exam

� Topics that you have the least experience

� Topic areas you scored lowest on practice quizzes

Tip #6: Environment is Important

Study Tips

� Find the study environment that works best for you.

◦ Some like complete silence

◦ Some like crowded areas

� Mix up your study locations.

Tip #7: Form a Study Group

Study Tips

Effective way to study for the CIA Exam.

� Choose diverse mix of individuals, with varying areas of expertise.

Tip #8: Print out the Flashcards

Study Tips

A portable way to study key terms.

� Take them with you.

� Read and re-read questions for full understanding.

� Look for key words (“most,” “all,” “except,” or “not”).

� Identify your answer before reading the choices.

� Trust your first impression.

Strategies for Answering Exam Questions

� Eliminate obvious wrong choices:◦ Look for absolute words such as

“always” and “never.” Rarely do situations fall into those categories.

◦ If two or more options are identical, then both responses must be incorrect.

◦ If two options are opposites, then at least one of them may be eliminated.

◦ Select the option that is the most inclusive.

◦ Do not change your answers unless they are obviously wrong.


� Evaluate possible right choices.

� Use “educated guesses.”

� Don’t stop. If you are unsure, continue on and come back to unanswered questions. Exercise good time management.

� Don’t leave any questions blank at the end of the exam.


� Don’t look for answer patterns. (“c” will not necessarily be the most frequent answer).

� Length of an answer is a false clue.

Test-taking Myths

� Budget your time and don’t rush.

◦ Part 1: 2.5 hours = 1.4 min/question

◦ Part 2: 2 hours = 1.2 min/question

◦ Part 3: 2 hours = 1.2 min/question

� Review your answers.

� Take breaks; refocus your attention.

Use Your Time Wisely

Two internal auditors left the internal audit department who cannot be immediately replaced due to budget constraints. Which of the following is the least desirable option for efficiently completing future engagements, given this reduction in resources?

A. Using self-assessment questionnaires to address audit objectives.

B. Employing information technology in audit planning, sampling, and documentation.

C. Eliminating consulting engagements from the engagement work schedule.

D. Filling vacancies with personnel from operating departments that are

not being audited.

Sample Exam Questions

Which of the following fraudulent entries is most likely to be made to conceal the theft of an asset?

A. Debit expenses, and credit the asset.

B. Debit the asset, and credit another asset account.

C. Debit revenue, and credit the asset.

D. Debit another asset account, and credit the asset.


Which of the following statements is correct regarding audit engagement workpaper documentation for a fraud investigation?

I. All incriminating evidence should be included in the workpapers.

II. All important testimonial evidence should be reviewed to ensure that it provides sufficient basis for the conclusions reached.

III. If interviews are held with a suspected perpetrator, written transcripts or statements should be included in the workpapers.

A. I only.

B. II only.

C. II and III only.

D. I, II, and III.


If a country uses trade quotas to overcome chronic trade deficits, the most likely outcome would be that:

A. Unemployment and productivity rates will rise.

B. Unemployment rates will rise and productivity rates will decline.

C. Unemployment rates will decline and productivity rates will rise.

D. Unemployment and productivity rates will decline.


Which of the following costs does management need to consider when introducing a new product or substituting a new product for an existing one?

I. Costs of retraining employees.

II. Costs of acquiring new ancillary equipment.

III. Write-offs due to undepreciated investment in old technology.

IV. Capital requirements for changeover.

A. I and III only.

B. I, II, and IV only.

C. II, III, and IV only.

D. I, II, III, and IV.


Resources

� The IIA's Certification Candidate Handbook (https://na.theiia.org/certification/Pages/Certification-Candidate-Handbook.aspx)

� Certified Internal Auditor® (CIA®) Exam Preparation and Practice Resources (https://na.theiia.org/certification/CIA-Certification/Pages/Exam-Preparation-Resources.aspx)

� Certified Internal Auditor® (CIA®) Sample Exam Questions (https://na.theiia.org/certification/cia-certification/Pages/Sample-Exam-Questions.aspx)

� The Institute of Internal Auditors’ CIA Learning System (http://www.learncia.com/3partcia)

Questions?

Contact Information

Robert Venczel, MBA, CPA, CMA, CISA, PMP, CIA, CRMA

Bivium®

[email protected]

613-843-7629

2015 05 - new cia exam format

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