Many candidates lose marks not because they lack knowledge, but because they answer a different question from the one being asked. The CIA Challenge Exam tests the practical application of internal audit knowledge, so the way you read a scenario matters as much as what you know. Knowing how to read a question carefully is just as important as knowing the content.
A Seven-Step Method for Reading Exam Questions
- Identify what the question is asking. Read the final sentence first to understand what you need to answer, then read the scenario carefully.
- Look for key words such as NOT, BEST, FIRST, MOST APPROPRIATE, and LEAST LIKELY. These words can change which answer is correct. Pay close attention to them.
- Identify who is responsible for acting. Is the question about the internal auditor, the chief audit executive (CAE), management, or the board? Each has different responsibilities, so the correct action depends on who is involved.
- Identify the concept and syllabus section. Is the question about independence, audit planning, evidence, findings, or follow-up? Recognising this helps you apply the right principle.
- Remove two options you are sure about. Look for options that do not fit the scenario or go against internal audit principles. Removing these options makes it easier to compare the remaining choices.
- Look for the option that best follows the applicable Standards, supports sound professional judgement, and fits the situation. Do not automatically choose the quickest or easiest solution.
- Check the question one last time. Before selecting your answer, reread the key words and make sure your choice answers exactly what was asked.
A quick example
Suppose management has accepted a risk that the chief audit executive believes is too high, and a discussion with senior management has not resolved it. What should the chief audit executive do in response?
How to work through the question:
- Identify the actor: The chief audit executive.
- Identify the issue: Management has accepted a level of risk that may be unacceptable to the organisation.
- Identify what has happened: The CAE has already raised the concern with senior management, but it remains unresolved.
- Choose the next step: Escalate the matter to the board, in line with the applicable internal audit requirements. Risk acceptance and escalation are covered in Section E of the CIA Challenge Exam syllabus.
Practise it
In our programmes, we work through exam-style questions with this method until it becomes automatic, whatever your background in accounting, information systems or audit.