CIA Cheat Sheet 2026

The 30 highest-yield CIA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What continuing education requirement supports estate planning competence? → Ongoing education in regulatory changes, market developments, and best practices
2. Which financial statement reports a company's assets, liabilities, and equity at a specific point in time? → Balance sheet
3. Under the FCPA, which type of payment is generally permitted as an exception to the anti-bribery provisions? → Facilitating payments for routine governmental actions
4. Which SOX section requires the CEO and CFO to personally certify the accuracy of periodic financial reports filed with the SEC? → Section 302
5. A donor gives stock with a $10,000 basis and a $50,000 fair market value. The donee sells it for $55,000. What is the donee's gain? → $45,000
6. A closely held business wants to avoid double taxation on its distributed profits while keeping limited liability. Which structure best meets this goal? → S corporation
7. Strategic asset allocation differs from tactical asset allocation in that strategic allocation: → Sets long-term target weights based on the investor's objectives and constraints
8. Which situation gives rise to a deferred tax liability? → Accelerated depreciation for tax and straight-line for books
9. Breaking a large cash deposit into several smaller deposits specifically to avoid reporting thresholds is known as: → Structuring
10. Which of the following is the most common type of occupational fraud according to the ACFE Report to the Nations? → Asset misappropriation
11. A CIA examiner reviewing a company's IT controls finds that system administrators also perform end-user functions. This is an example of a failure in: → Segregation of duties
12. In evaluating IT general controls, which test procedure would an internal auditor most likely use to assess user access management? → Reviewing a listing of user accounts and comparing to HR termination records
13. A change from the FIFO to the weighted-average inventory method is accounted for as a: → Change in accounting principle, applied retrospectively
14. How should risk assessment performance be reported to clients? → Provide accurate, complete, and timely performance reporting with appropriate benchmarks
15. In states that recognize them, what makes a holographic will valid? → Its material provisions are in the testator's handwriting and the testator signs it
16. A control deficiency serious enough that a material misstatement might not be prevented or detected on a timely basis is called: → A material weakness
17. In IT auditing, what does 'segregation of duties' within the IT function typically require? → Separation of system development, operations, and security roles
18. Annual demand is 4,500 units, ordering cost is $100 per order, and holding cost is $10 per unit per year. What is the economic order quantity? → 300 units
19. Which activity BEST builds trust with engagement clients before fieldwork begins? → Holding an opening (entrance) meeting to discuss objectives, scope, and timing
20. What should an accountant do when facing an ethical dilemma? → Refer to the code of ethics and seek guidance
21. During audit planning, what must the auditor assess? → Risk of Material Misstatement
22. Which of the following best illustrates management override of controls? → A CFO directing staff to record unsupported top-side journal entries at quarter end
23. In the Three Lines Model, which function owns and manages risk on a day-to-day basis? → Operational management (first line)
24. Using the same division (income $60,000, assets $400,000) and a 12% minimum required return, what is residual income? → $12,000
25. An employee who steals cash before it is recorded in the accounting system is committing which type of fraud? → Skimming
26. What is a closing entry? → Transferring temporary account balances
27. Confidentiality in accounting requires that professionals: → Protect sensitive information unless required by law
28. What regulatory compliance requirement applies to financial planning? → Full compliance with all applicable federal, state, and industry regulations
29. The sales volume variance measures the difference between: → The flexible budget and the static (master) budget
30. Treasury stock under the cost method is reported on the balance sheet as: → A deduction from stockholders' equity