IIA CIA Exam Changes: Major CIA Syllabus Changes in 2019

iia cia exam changes 2019

In the ever-changing environment of the business and accounting industries, professional accounting exams must be adjusted every 5-6 years to keep up. Therefore, IIA CIA exam changes arrived on January 1, 2019. So, if you’re starting your exam journey now, let me tell you all about the 2019 CIA exam changes so you can prepare to pass successfully.

The Purpose of CIA Exam Changes

In early 2017, the Institute of Internal Auditors (IIA) conducted an extensive analysis of the modern internal audit profession. With their research, they uncovered the knowledge, skills, and abilities current internal audit professionals need in their positions. The IIA then decided to modify the CIA exam syllabus so that the new version assess CIA candidates for such information and capabilities.

According to the IIA, an exam syllabus is an outline summarizing the topic areas the exam addresses. Therefore, each part of the CIA exam has its own separate syllabus. For this reason, CIA exam review providers and candidates can use the 3 CIA exam syllabi to identify and learn the content on which the exam will cover. The exam focuses on this content in order to prove candidate proficiency in internal audit during the process of earning the CIA designation.

The Timing of the 2019 CIA Exam Changes

As I mentioned, a new iteration of the CIA exam launched January 1, 2019. The IIA released the updated English version of the exam first. Other language versions of the exam will become available gradually throughout 2019.

LanguageAvailability Date
French and SpanishJune 1, 2019
German and TurkishJuly 1, 2019
Arabic and RussianAugust 1, 2019
Korean and PortugueseSeptember 1, 2019
Chinese Traditional and JapaneseOctober 1, 2019
Chinese SimplifiedDecember 2019 or early 2020

The Extent of the CIA Exam Changes 2019

Unaffected CIA Exam Features

The format of the CIA exam, which includes the following exam components, will remain the same:

Exam Structure

3 Parts

Exam Duration

150 minutes (Part 1)

120 minutes (Part 2)

120 minutes (Part 3)

Number of Exam Questions

125 Questions (Part 1)

100 Questions (Part 2)

100 Questions (Part 3)

Exam Grading

Scale: 250-700

Passing Score: 600

The CIA exam requirements will also stay the same.

Affected CIA Exam Features

The IIA has adjusted the syllabus of all 3 parts to reflect the latest global practice of internal audit. In particular, the IIA has revised Part 1 and Part 2 to better align with The IIA’s International Standards for the Professional Practice of Internal Auditing.

The IIA has also switched a few sections between Part 1 and Part 2 to create a more focused and coherent syllabus. Therefore, candidates who have already taken Part 1 or 2 may see some subject areas repeats if they take the other part in 2019.

CIA Syllabus Changes

Each new CIA syllabus for 2019 differs significantly from each old CIA syllabus 2018. As you can see in this comparison of the IIA syllabus for each part, the CIA Part 1 syllabus and the CIA Part 2 syllabus have gained content areas, while the CIA Part 3 syllabus has lost content areas.

CIA Part 1 Syllabus Changes

Essentials of Internal Auditing

Part 1 CIA Syllabus 2018Part 1 CIA Syllabus 2019
I. Mandatory Guidance (35-45%)I. Foundations of Internal Auditing (15%)
II. Internal Control / Risk (25-35%)II. Independence and Objectivity (15%)
III. Conducting Internal Audit Engagements – Audit Tools and Techniques (25-35%)III. Proficiency and Due Professional Care (18%)
IV. Quality Assurance and Improvement Program (7%)
V. Governance, Risk Management, and Control (35%)
VI. Fraud Risks (10%)

CIA Part 2 Syllabus Changes

Practice of Internal Auditing

Part 2 CIA Syllabus 2018Part 2 CIA Syllabus 2019
I. Managing the Internal Audit Function (40-50%)I. Managing the Internal Audit Activity (20%)
II. Managing Individual Engagements (40-50%)II. Planning the Engagement (20%)
III. Fraud Risks and Controls (5-15%)III. Performing the Engagement (40%)
IV. Communicating Engagement Results and Monitoring Progress (20%)

CIA Part 3 Syllabus Changes

Business Knowledge for Internal Auditing

Part 3 CIA Syllabus 2018Part 3 CIA Syllabus 2019
I. Governance / Business Ethics (5-15%)I. Business Acumen (35%)
II. Risk Management (10-20%)II. Informational Security (25%)
III. Organizational Structure / Business Processes and Risks (15-25%)III. Information Technology (20%)
IV. Communications (5-10%)IV. Financial Management (20%)
V. Management / Leadership Principles (10-20%)
VI. IT / Business Continuity
VII. Financial Management (10-20%)
VIII. Global Business Environment (0-10%)

The new syllabi also provide more information about how deeply the exam expects candidates to understand each topic. For example, the old syllabus told candidates to know all topics at the Proficient level as opposed to the Awareness level. Consequently, each new syllabus specifies whether an individual subtopic requires a Basic or Proficient level of knowledge. This detail helps candidates get a better impression of the relative importance of every topic.

Part 1 Changes in the CIA Exam

cia exam part 1 changesThe new CIA exam Part 1 syllabus reorganizes this part to cover a macro view of internal audit. Furthermore, the syllabus goes deeper into the foundations of internal auditing as defined by the IIA mission statements and standards.

Part 1 also tests the overall concept of governance, risk management and control, and fraud risk in more detail.

The syllabus has moved the application portion of internal audit (e.g. audit tools and techniques) to Part 2.

Section I to IV

These 4 sections include:

  • Foundations of Internal Auditing
  • Independence and Objectivity
  • Proficiency and Due Professional Care
  • Quality Assurance and Improvement Program

They are essentially the same as Section I in the old syllabus. The combined weighting (15%+15%+18%+7% = 55%) is higher than the old one (35-45%).

Changes include:

  • Under section IC, one new topic has been added about interpreting the difference between assurance and consulting services provided by the internal audit activity.
  • The questions involving definition now align with specific IIA standards instead of general rules in auditing.

Section V

Governance, Risk Management, and Control now appear in this section. Originally, these topics were located under Section II in the old syllabus.

Additionally, the subtopics in this section are almost evenly split between a Basic knowledge level requirement and a Proficient knowledge level requirement.

Finally, the weighting has increased from 25-35% to 35%.

Section VI

Fraud Risks was part of the old Section II. But now, this topic has merged with Section III in Part 2 to form a new separate section. At 10%, the weighting is about the same.

Furthermore, in the old exam, these topics were tested at the Awareness level in Part 1 and progressed to the Proficient level in Part 2. However, in the new exam, candidates must know almost all of these topics at the Proficient level.

Transferred Section

The old Section III, Conducting Internal Audit Engagement (25-35%), has moved to Part 2.

Knowledge Levels Required for CIA Exam Part 1 Topics

Basic

14
Proficient

19

CIA Exam Changes in Part 2

cia exam part 2 changesThe new CIA Part 2 syllabus now clarifies that this part tests the application of internal audit.

Specifically, Part 2 assesses candidates’ knowledge, skills, and abilities related to the IIA’s Performance Standards (Series 2000, 2200, 2300, 2400, 2500, and 2600) and current internal audit practices.

Section I

This section, called Managing the Internal Audit Activity, is the same as Section I in the old syllabus.

Nevertheless, Section I places less emphasis on the strategic role of internal auditors (previously addresses in Section 1A) and now only tests on this topic at the Basic level.

Accordingly, this section has experienced a great reduction in overall weighting, going from 40-50% to 20%.

Section II and IV

Previously, Section II on Planning the Engagement was the first part of the old Section II.

Additionally, Section IV on Communicating Engagement Results was the second part of the old Section II.

Not surprisingly, the newly combined weighting of this (20% + 20% = 40%) falls within the same range as the old version (40-50%).

Section III

The Performing the Engagement section used to be in Section III in Part 1. But now, the weighting has increased from 25-35% in old Part 1 to 40% in the new Part 2.

Transferred Section

The old Section III on Fraud Risk now resides in Section VI. Fraud Risk in Part 1.

Knowledge Levels Required for CIA Exam Part 2 Topics

Basic

14
Proficient

21

Part 3 CIA Exam Changes

cia exam part 3 changesThe new CIA Part 3 syllabus considerably streamlines this content to feature only the areas most relevant to internal auditors. For example, the IIA removed business competition, conflict management, cultural and political environment, and communications from the new CIA Part 3 syllabus.

Interestingly, the once heavily tested topic about COSO and ISO 31000 seems to have disappeared as well.

As a result, the new syllabus places much greater weight on Information Security and Information Technology.

Section I

This Business Acumen section is a combination of the old Sections III and V. For this reason, most of the topics continue to test at the Basic level. However, performance measures and the risk/control implications of common business processes now require a Proficient level of knowledge.

Moreover, with 35%, the weighting of this section stays within the old 25-40% range.

Section II and III

These 2 sections on Information Security and Information Technology pull from the old Section VI on the same subject. But, the weighting has increased significantly, going from a range of 15-25% to 45%.

Although, the cognitive level continues to be Basic. So, this section just tests candidates at an introductory level of the topics.

Section IV

This section on Financial Management is a duplicate of the old Section VII on the same subject. Hence, the testing level is still Basic for all topics except financial analysis (the ratios).

Once again, the weighting (20%) remains in the same range (15-20%) found in the old syllabus.

Knowledge Levels Required for CIA Exam Part 3 Topics

Basic

32
Proficient

3

The Effects of the IIA CIA Exam Changes on CIA Candidates

New Exam Candidates

Whether the new syllabus makes the exam harder or easier is hard to say. But new exam candidates can rest assured thatCIA exam review course providers have updated their content according to the new syllabus and will continue to adjust their practice questions and exams to better reflect the altered exam content as they receive more feedback from candidates.

Candidates Taking Part 1 and/or Part 2

As I mentioned, the topic switches that took place between the 2018 CIA syllabi and the 2019 CIA syllabi mean that candidates who took Part 1 or Part 2 in 2018 may see some of the same topics when they sit for the other part in 2019.

On the other hand, if you have to retake Part 1 or Part 2 in 2019, you’ll have to study some new topics in order to pass the new version.

Candidates Taking Part 3

Part 3 is now less of a mixed bag, which could be good news for many candidates.

For instance, Governance and ISO 31000 may no longer be tested (at least, the new syllabus does not explicitly mention them as the old syllabus did).

Also, the exam still tests financial management at the Basic level. In that case, those who use Gleim can still to stay away from the complex computational practice questions. The ratios remain important though. For this reason, you should memorize the formulas and know how to apply them.

Candidates Who Have Already Passed at Least 1 CIA Exam Part

Maybe you’re wondering, “I’ve already passed one part of the CIA exam. Do I need to retake that part in 2019? Will my credit for passed CIA exam parts carry over?”

No, you do not need to retake any passed parts in 2019. Because yes, credit for passed exam parts will carry over. As a result, you can combine credit for a part passed in 2018 with a part passed in 2019. Just remember: you have 3 years to pass all 3 CIA exam parts.

Preparing for the CIA Exam Changes 2019

To ensure that you’re prepared for the most recent exam version, you need to study with the most up-to-date review materials. If you purchased an online course that comes with free updates, make sure you accept those changes and get the latest edition of the printed book as well.

If your CIA materials are out of date and you can’t renew them for free, you must invest in new materials so you have the information you need to pass. Thankfully, you can save money on these materials when you use my CIA review discounts to make your purchase.

You can further diminish CIA exam uncertainty by taking our free mini-course. This course will help you pass the CIA exam with ease, so sign up directly below:

Reader Feedback on the New 2019 CIA Exam

The new exam has not been around for long, but we already have some valuable feedback on it from one of our readers. That’s because our reader Lio (who is now officially a CIA!) sat for the CIA Part 3 2019 exam and has this to say about his exam experience:

Lio’s Words

Lio Sat for 2019 CIA Exam“Great news! I passed the last part, and I’m now a full-fledged CIA! I’d like to thank you and the rest of the IPasstheCIAExam.com blogging community for helping me get through the last hurdle. Truth be told, your recurring emails about practical advice and review tips as well as your readers’ experiences did help in making sure I stayed focused down to the last stretch.

As a way of giving back to the community, I’d like to share my exam experience with your readers and hope that they, too, could learn from my experience. I think this is also insightful since I probably am one of the few ‘guinea pigs’ writing the new 2019 CIA syllabus exam.

Since it was such a frenzy, and everything happened in a daze (not-so-fun fact: I almost didn’t make it to the exam because I didn’t realize I had an expired driver’s license), I will try to recall as much as I can about the exam content and present that information here in bullet points.

Just a caveat: everything I’m saying here is based solely on my exam. It is very possible that other people who sit for the exam will see very different sets of study unit questions than I did. So without further ado, here are some tips and practical advice you might find useful.

Lio’s General CIA Exam Advice

  • Don’t spend too much time on your review course’s study/test questions; focus on the content of the study units instead. When you read the book, you take the concepts of what is covered in the exam to heart, which allows you to readily apply those concepts to the actual exam questions. Conversely, if you just memorize the sample questions from the test bank, you’re conditioning yourself to expect the same type of questions in the actual exam, which increases the risk of failure. In my actual exam, the type of questions I had was way, way different from the practice questions of my review course.
  • Choose a review course and stick to it. I noticed that a lot of your blog readers asked a lot of questions about what type of review course is best and which ones they need to use. For me, I found Gleim CIA to be the best material out there, content-wise and price-wise. Their 2019 course has this Personal Classroom review style that sets your knowledge baseline at the beginning of each study unit and adjusts that based on post-study unit questions. In doing so, the system is able to identify your weak points and reinforces those types of questions in succeeding study units. Finally, after finishing all 14 study units, it gives you this huge 100-question exam rehearsal and, based on your results, pinpoints which areas you need to focus on further. This worked great for me! (Heads up from Stephanie: these features are only available in the Premium and Traditional courses).

Lio’s Part 3 CIA 2019 Exam Syllabus Advice

IT

  • Make sure to learn all the IT-related study units by heart. I cannot emphasize enough how extremely important this advice is. Just to ballpark, half of the 100 questions in my exam were related to IT. So, be sure you know the difference between application and ITGCs and commit to memory the different types of these IT controls, especially the different types of application controls. Know the different IT stakeholders and the job functions and responsibilities they hold (senior management, management, system administrator, DBA, helpdesk, computer operator, network administrator, infrastructure support, etc.). There were also a lot of questions about cybersecurity and disaster recovery as well as some questions relevant to data analytics. What makes a database? What are its components? How does Internet work? TCP/IP, Firewall, IPS/IDS, anti-virus, malware: the whole nine yards. Just throwing some keywords in here.

Financial and Managerial Accounting

  • About 30-50% of my exam questions had to do with financial and managerial accounting. Hence, it is prudent for exam takers to have a solid understanding of basic and advanced financial and management accounting (In Gleim, these are Study Units 9, 10, 13, and 14). Not so much the calculation aspect (I only had 1-2 questions involving computation), but the concepts behind them. More often than not, the exam would give you a scenario, and you’d have to determine what effect would it have (or vice versa). For example, what would be the net effect of paying accounts payable in company X’s quick ratio? (Answer: zero net effect since both current asset and liability are reduced).
  • On the financial side, be sure you have a good understanding of basic and advanced financial accounting and managerial accounting (Study Units 9, 10, 13, 14). Also, don’t forget the basics of CVP analysis. Make sure you know the difference between variable costing, full costing, process costing, and JIT. And, be familiar with the concepts of BEP, CM, manufacturing COS, residual income, etc.

Lio’s CIA Exam Study Advice

  • Of course, the best plan is to have adequate review time for ALL the covered topics. But if push comes to shove and the exam taker has no other option but to procrastinate in their final review hours, their best bet for passing would be to focus on IT/Business Continuity and Financial Management. These 2 massive sections alone comprised 75-85% of the content of my exam. The rest of the questions were sporadically sourced from the remaining syllabus topics.

Lio’s Advice for CIA Exam Part 3 Questions

  • I just had 2 questions that involved calculations, so the focus should be on learning the concept more than on the process of how to compute. I didn’t encounter too many formulas either (maybe just a sprinkle).
  • For me, the least tested topics were project management and contracts (thank goodness, as this was my weakest point), taxation, and IT standards and frameworks (i.e. COBIT, COSO, NIST, ISO 9000, 14000, 27001, GTAGs), which was odd because these were the ones mostly tested back in 2018.
  • Finally, there were 1 or 2 questions related to strategic management, org structure and behavior, leadership, capital structure, and transfer pricing.
  • Side-note: As in the case of multiple-choice questions, the choices can be extra tricky, so you really have to read between the lines. Several times I felt like I was stuck with 2 possible answers (by process of elimination), but there can only be 1 BEST answer. So, being able to fully grasp the context of the question and relating that to your strong understanding of the topic concepts really helps a lot.

Lio’s Conclusions for CIA Exam Part 3

If you look at Lynette’s tips on passing CIA Part 3 last year and compare that with the type of questions I had this year, you can see how what seems to be the new norm is a stark departure from what has been frequently tested in the past. Then again, as I said, what holds true for my exam might not hold true for the exams of others.

I hope this information can add value to your readers who are currently preparing to write Part 3 soon.”

If you would like to contribute your own experience regarding the CIA Exam 2019 to this article, please send me a message.

Gleim CIA Review Course Changes

Gleim CIA Review is the most widely used CIA review course, and many of my readers use it. Therefore, I’d like to demonstrate just how much the CIA exam changed on January 1, 2019, by revealing how much the content of the 2019 edition of Gleim CIA Review differs from the 2018 edition. You can compare the detailed table of contents from each part of the 2019 Gleim course to your 2018 Gleim course to get a better sense of the new CIA exam syllabi’s effects. Also, if you’re interested in purchasing Gleim for your CIA 2019 study materials, make sure to check out my Gleim CIA discount page.

Gleim CIA Review Part 1 Detailed Table of Contents

Study Unit 1. Foundations of Internal Auditing

  • 1.1. Applicable Guidance (page 9)
  • 1.2. Codes of Ethical Conduct for Professionals (page 13)
  • 1.3. Internal Audit Ethics — Introduction and Principles (page 14)
  • 1.4. Internal Audit Ethics – Integrity (page 15)
  • 1.5. Internal Audit Ethics — Objectivity (page 16)
  • 1.6. Internal Audit Ethics – Confidentiality (page 17)
  • 1.7. Internal Audit Ethics — Competency (page 17)
  • 1.8. Internal Audit Charter (page 18)

Study Unit 2. Independence, Objectivity, Proficiency, Care, and Quality

  • 2.1. Independence of the Internal Audit Activity (page 30)
  • 2.2. Objectivity of Internal Auditors (page 33)
  • 2.3. Impairment to Independence and Objectivity (page 35)
  • 2.4. Auditor Proficiency (page 38)
  • 2.5. Internal Audit Resources (page 42)
  • 2.6. Due Professional Care and Continuing Professional Development (page 43)
  • 2.7. Quality Assurance and Improvement Program (QAIP) (page 46)
  • 2.8. Internal and External Assessments (page 48)
  • 2.9. Reporting on Quality Assurance (page 51)

Study Unit 3. Governance

  • 3.1. Governance Principles (page 60)
  • 3.2. Roles of Internal Auditors in Governance (page 66)
  • 3.3. Corporate Social Responsibility (CSR) (page 68)

Study Unit 4. Risk Management

  • 4.1. Risk Management Processes (page 79)
  • 4.2. COSO Framework — Enterprise Risk Management (ERM) (page 86)
  • 4.3. ISO 31000 Risk Management Framework (page 98)

Study Unit 5. Controls: Types and Frameworks

  • 5.1. Overview of Control (page 110)
  • 5.2. Types of Controls (page 114)
  • 5.3. Control Frameworks (page 118)

Study Unit 6. Controls: Application

  • 6.1. Flowcharts and Process Mapping (page 138)
  • 6.2. Accounting Cycles and Associated Controls (page 142)
  • 6.3. Management Controls (page 154)

Study Unit 7. Fraud Risks and Controls

  • 7.1. Fraud — Risks and Types (page 167)
  • 7.2. Fraud — Controls (page 171)
  • 7.3. Fraud – Investigation (page 172)

Gleim CIA Review Part 2 Detailed Table of Contents

Study Unit 1. Internal Audit Operations

  • 1.1. Introduction to Internal Auditing (page 10)
  • 1.2. Internal Audit Administrative Activities (page 12)
  • 1.3. Stakeholder Relationships (page 14)
  • 1.4. Internal Audit Resource Requirements (page 16)
  • 1.5. Coordination (page 18)

Study Unit 2. Assurance and Compliance Engagements

  • 2.1. Assurance Engagements (page 28)
  • 2.2. Risk and Control Self-Assessment (page 31)
  • 2.3. Audits of Third Parties and Contract Auditing (page 35)
  • 2.4. Quality Auditing (page 38)
  • 2.5. Security and Privacy Audits (page 40)
  • 2.6. Performance Auditing (page 43)
  • 2.7. Operational Auditing (page 45)
  • 2.8. Compliance Auditing (page 46)

Study Unit 3. Financial, Environmental, and Consulting Engagements

  • 3.1. Financial Engagements (page 56)
  • 3.2. Environmental Engagements (page 65)
  • 3.3. Consulting Engagements – Overview (page 69)
  • 3.4. Consulting Engagements – Internal Auditor (page 72)
  • 3.5. Consulting Engagements – Benchmarking (page 76)
  • 3.6. Consulting Engagements – Other Types (page 78)

Study Unit 4. The Internal Audit Plan

  • 4.1. Risk-Based Audit Plan (page 88)
  • 4.2. Risk Modeling (page 92)
  • 4.3. Communicating and Reporting to Senior Management and the Board (page 95)

Study Unit 5. Engagement Planning

  • 5.1. Engagement Planning and Risk Assessment (page 104)
  • 5.2. Engagement Objectives, Scope, and Criteria (page 108)
  • 5.3. Engagement Staff and Resources (page 110)
  • 5.4. Engagement Procedures (page 111)
  • 5.5. Engagement Work Program (page 116)

Study Unit 6. Information Gathering

  • 6.1. The Four Qualities of Information (page 126)
  • 6.2. Sources and Nature of Information (page 127)
  • 6.3. Questionnaires (page 130)
  • 6.4. Interviewing (page 131)
  • 6.5. Other Information-Gathering Methods (page 135)

Study Unit 7. Sampling and Statistical Quality Control

  • 7.1. Statistical Concepts (page 144)
  • 7.2. Sampling Concepts (page 148)
  • 7.3. Attribute Sampling (page 150)
  • 7.4. Variables Sampling (page 153)
  • 7.5. Statistical Quality Control (page 156)

Study Unit 8. Analysis, Evaluation, Documentation, and Supervision

  • 8.1. Computerized Audit Tools (page 168)
  • 8.2. Analytical Approaches and Process Mapping (page 170)
  • 8.3. Analytical Review Techniques (page 175)
  • 8.4. Workpapers — Purpose and Characteristics (page 178)
  • 8.5. Workpapers — Review, Control, and Retention (page 180)
  • 8.6. Drawing Conclusions (page 182)
  • 8.7. Supervision (page 184)

Study Unit 9. Communicating Results and Monitoring Progress

  • 9.1. Communication with Clients (page 194)
  • 9.2. Observations and Recommendations (page 195)
  • 9.3. Communicating Engagement Results (page 196)
  • 9.4. Communication Qualities and Overall Opinions (page 198)
  • 9.5. Exit Conference and Management’s Response (page 204)
  • 9.6. Approve and Distribute Reports (page 205)
  • 9.7. Monitor Engagement Outcomes (page 208)

Gleim CIA Review Part 3 Detailed Table of Contents

Study Unit 1. Strategic Management and Planning

  • 1.1. Strategic Management and Planning (page 10)
  • 1.2. Globalization (page 19)

Study Unit 2. Organizational Behavior and Performance Measures

  • 2.1. Organizational Theory (page 40)
  • 2.2. Motivation — Need-Based Theories and Rewards (page 43)
  • 2.3. Motivation — Process-Based Theories, Behavior, Job Design, and Other (page 46)
  • 2.4. Organizational Politics and Group Dynamics (page 49)
  • 2.5. Performance Measures (page 54)
  • 2.6. Performance Measures — Costs of Quality (page 57)
  • 2.7. Performance Measures — Balanced Scorecard (page 58)

Study Unit 3. Leadership, Organizational Structure, and Business Processes

  • 3.1. Leadership (page 68)
  • 3.2. Organizational Structure (page 78)
  • 3.3. Business Process — Human Resources and Outsourcing (page 90)
  • 3.4. Business Process — Pricing and the Supply Chain (page 95)
  • 3.5. Business Process – Procurement (page 99)

Study Unit 4. Project Management and Contracts

  • 4.1. Project Management – Concepts (page 110)
  • 4.2. Project Management – Techniques (page 117)
  • 4.3. Change Management (page 121)
  • 4.4. Contracts (page 122)
  • 4.5. Classification of Contracts (page 125)

Study Unit 5. Workstations, Databases, and Applications

  • 5.1. Workstations and Databases (page 134)
  • 5.2. Application Development and Maintenance (page 147)

Study Unit 6. IT Infrastructure

  • 6.1. Functional Areas of IT Operations (page 163)
  • 6.2. Web Infrastructure (page 165)
  • 6.3. IT System Communications and Software Licensing (page 169)
  • 6.4. Systems that Support Routine Processes (page 176)

Study Unit 7. IT Framework and Data Analytics

  • 7.1. IT Control Frameworks and International Organization for Standardization (ISO) Framework (page 186)
  • 7.2. Aspects of Automated Information Processing (page 195)
  • 7.3. IT Controls (page 197)
  • 7.4. Data Analytics (page 201)

Study Unit 8. Information Security and Disaster Recovery

  • 8.1. Information Security and Cybersecurity Related Policies and Controls (page 214)
  • 8.2. Authentication, Authorization, and Encryption (page 219)
  • 8.3. Information Protection (page 221)
  • 8.4. Contingency Planning and Disaster Recovery (page 229)

Study Unit 9. Concepts and Underlying Principles of Financial Accounting

  • 9.1. Concepts of Financial Accounting (page 242)
  • 9.2. Financial Statements (page 245)
  • 9.3. The Accrual Basis of Accounting (page 251)
  • 9.4. The Accounting Process (page 253)
  • 9.5. Cash, Accounts Receivable, and Inventory (page 255)
  • 9.6. Property, Plant, and Equipment and Intangible Assets (page 259)
  • 9.7. Accounts Payable, Accrued Expenses, and Deposits and Other Advances (page 262)
  • 9.8. The Time Value of Money (page 265)
  • 9.9. Bonds (page 266)
  • 9.10. Pensions (page 268)
  • 9.11. Leases and Contingencies (page 269)

Study Unit 10. Advanced Financial Accounting Concepts and Analysis

  • 10.1. Risk and Return (page 280)
  • 10.2. Derivatives (page 283)
  • 10.3. Foreign Currency Transactions (page 286)
  • 10.4. Business Combinations and Consolidated Financial Statements (page 287)
  • 10.5. Corporate Equity Accounts and Partnerships (page 290)
  • 10.6. Financial Statement Analysis — Liquidity Ratios (page 292)
  • 10.7. Financial Statement Analysis — Activity Ratios (page 294)
  • 10.8. Financial Statement Analysis — Solvency Ratios and Leverage (page 297)
  • 10.9. Financial Statement Analysis — ROI and Profitability (page 298)
  • 10.10. Financial Statement Analysis — Corporate Valuation and Common-Size Financial Statements Ratios (page 300)

Study Unit 11. Current Assets Management

  • 11.1. Working Capital and Cash Management (page 309)
  • 11.2. Receivables Management (page 313)
  • 11.3. Managing Inventory Costs and Quantities (page 315)
  • 11.4. Inventory Management Methods (page 317)
  • 11.5. Inventory Systems (page 320)

Study Unit 12. Capital Structure and Budget, Basic Taxation, and Transfer Pricing

  • 12.1. Corporate Capital Structure — Debt Financing (page 334)
  • 12.2. Corporate Capital Structure — Equity Financing (page 336)
  • 12.3. Corporate Capital Structure — Cost of Capital (page 339)
  • 12.4. Capital Budgeting (page 342)
  • 12.5. Short-Term Financing (page 347)
  • 12.6. Methods of Taxation (page 351) 12.7. Transfer Pricing (page 353)

Study Unit 13. Managerial Accounting: General Concepts

  • 13.1. Cost Management Terminology (page 364)
  • 13.2. Budget Systems (page 365)
  • 13.3. Budget Methods (page 373)
  • 13.4. Cost-Volume-Profit (CVP) Analysis and Cost-Benefit Analysis (page 375)
  • 13.5. Responsibility Accounting (page 380)

Study Unit 14. Managerial Accounting: Costing Systems and Decision Making

  • 14.1. Cost Behavior and Relevant Range (page 390)
  • 14.2. Activity-Based Costing (page 394)
  • 14.3. Process Costing (page 400)
  • 14.4. Absorption (Full) vs. Variable (Direct) Costing (page 404)
  • 14.5. Relevant Costs and Decision Making (page 407)

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About the Author Stephanie

I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites.

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  • abayomi says:

    Hi Stephaine, I have noticed that virtually all Pearson centers do not have June 2017 available for CIA exams. Could you explain why this is so because if New standards are expected to be tested from July 1, 2017. there should still be exam dates available for CIA candidates till at least end of June on current syllabus.
    Kindly reply please.

    • Stephanie says:

      Really? I haven’t heard of this arrangement. If you are picking Fridays and Saturdays, the centers could be full by now.
      Can you call Pearson to find out? (sorry I can’t check it for you given I am not actively taking the exam).

  • Elaina says:

    Will there be any changes relevant to the Part 3 Exam I should be aware of?

  • nikki says:

    Hello Stephanie, has IIA announced the date of implementation of these new standards in exam. I am unable to find the announcement of the date. Thanks in advance.

    • Stephanie says:

      Hi Nikki, I can’t find them either (just checked it again today — July 15). I did chat with Hock and Gleim team earlier and they both said not to worry until there is formal announcement from the IIA. So I guess we are fine for now. Regards, Stephanie

  • Amit Mehra says:

    Hi Stephaine,

    Please help me.

    I am going to appear for the CIA Part 1 exams in Sep 17. When i asked during the last month from IIA through CCMS about when the new IPPF will be tested in the exams they informed me that it will be tested from jul 17 onwards however yesterday when i asked the same question in student support through telephone they had told me that it will be tested from Jan 18 onwards

    please advise me should i follow New IPPF 2017 while preparing for exams when my target is to appear in the exam on sep;17 or should i go for old IPPF 2013. Please advice on the urgent basis.

    • Stephanie says:

      Hi Amit, I am not 100% sure but it looks like the original plan was to implement the changes in second half of this year, but since we haven’t heard from them (haven’t made a formal announcement), the Jan 18 implementation is quite likely.

      Without further clarity or new announcement, I would stick with the old version for Sep exams. Regards, Stephanie

  • Vaibhav Kujara says:

    I have Gleim 17th edition books ,I hope that will suffice for exams to be taken in Dec’17 or I should purchase a 18th edition books.

    • Stephanie says:

      I haven’t looked into the differences, but I know Gleim promised to improve at least their Part 3 to improve their coverage of the actual exam (e.g. more emphasis on the heavily tested areas). If you are taking Part 3, I highly encourage that you take the latest edition. Regards, Stephanie

  • Happy says:

    Hello Please can I register for the CIA with my Advance Level certificate, I truely love to take this course now because I was opportuned to be enrolled in the university back then when after I had my Advance Level Certificate

  • Hang Nguyen says:

    Hi, Stephanie,

    I am going to take the CIA part1 on next Oct 9. I am reviewing base on the old version of IPPF. I would like to confirm whether there is an official announcement from IIA about update version applied for the exam on Oct 9. Can u find it out?

    Many thanks

    Hang Ng

  • Parviz says:

    Hello,

    I obtained Wiley CIA Excel Review 2014 textbook from my friend and I am wondering how much syllabus have changed over 4 years? Shall I book 2018 edition or it will be enough?

    • Stephanie says:

      Hello, while the syllabus does not have major changes, the text book should have gone through several editions, incorporating the feedback from exam takers over the years. I would think the examples and the quality of exam questions can be quite improved with the newer edition. Unless budget is tight, I will go for the latest edition. There is a cost (of time and money) in the event of a retake, you know. Regards, Stephanie

  • Nitesh Kumar says:

    I am planning to give CIA Part -1 in June 2018 Part 2 and 3 in 2019. Now Syllabus is going to change in 2019, Do i need to reappear for Part – 1 again if I pass in Part 1 this year?

  • Bhagirathi Samal says:

    I failed in part 1 exam today . That means I have to wait minimum 90 days to retake this part which will fall in 2019. What should I do?

    • Meghan D says:

      Would you like to sit for another Part while you wait out the 90 day period? Or you can begin restudying for the Part you already attempted. Which sounds more appealing to you at this point? I would suggest picking the option that seems less daunting at this point. These exams can burn you out if you’re not careful.

      -Meghan
      I Pass the CIA Exam

  • Mary says:

    Hi I plan on starting to write the exams in 2019 previously I was advised to start with part 3 as it is the most difficult do you have any idea as to whether this is still true in the 2019 revised version ? Also are the gleim books sufficient as I see the Wiley 2019 books are not available yet?

    • Meghan D says:

      Hello,

      Part 3 does tend to be the most difficult for candidates who do not have a strong accounting background. If you do have a good background with financial accounting concepts, this exam may not present a problem for you.

      Also, we do not recommend using books only. Do you have the test bank also?

      Kind regards,
      Meghan
      IPasstheCIAExam

  • Asif says:

    There lot of overlap syllabus from CMA, earlier it was not part of CIA.Most of part 3 contains are from CMA part 2, which will make part 3 bit difficult for most of the students.

  • Jes says:

    Hi, I just wanted to take CIA certification but I don’t have experience in internal audit instead have 4 yrs of experience in banking compliance.Will that count as my work experience?

  • Kenzie says:

    Hi Stephanie,
    I paid for Part 3 exam in Dec 2018 and planned to sit for the exam in Jan/Feb 2019. Today I was going to schedule the actual exam with Vue, however I noticed that on both IIA website (CCMS) and Vue, they still refer to this part as the “old name” – Internal Audit Knowledge Element, instead of the new name under the new syllabus – Business Knowledge for Internal Auditing. Now as I need to schedule the exam, I’m a bit concerned if I would be able to schedule for the new exam. I’ve been studying under the new syllabus, and of course want to schedule for the new exam. But now since both systems still refer to the exam in old names, I’m wondering it is because I paid for the exam in 2018 so I’m now stucked with the old exam?
    Has anyone had the similar situation? Or has anyone took the new exam already?

  • midodji says:

    Hello
    My name is Midodji and I actually prepare for the CIA part 3. I Tried it twice but I do not succed it. I plan to take my exam on march of this year. So I will be pleased to know if there are some persons who have already take the news part 3 exam. If So, I want they share there exam experiences with us. how is the exam and what topics are test on the exam.
    Thank you very much

  • Peng says:

    Hi everyone!

    I will be taking up the part 3 examination this May 2018. Can you share your experience with the new curiculum? Also. I do not have updated gleim reviewer so I am quite afraid to take the exam.

    Hope you can give advices. Thank you in advance.

  • Anna says:

    Hi, I just wanted to pass some feedback along to readers considering and/or taking the new CIA exam part 3. The 2019 updates have been extremely different from the previous exam. I would urge everybody who is considering taking the exam to reconsider. I would say approximately 60% of the exam is regarding IT and a heavy 40% is regarding financials. As an internal auditor with 10 years experience, I genuinely find that the financial portion is extremely irrelevant to the internal audit field, but more of a focus on external auditing and another way to stop exam candidates from passing. Based on my research, the previous exam pass rate for part 3 was around 40% due to the changes and content that has been altered, I would honestly say that the new exam rate will be more along the lines of 20%. The exam wording itself was so vague that you read the question three times and are still unaware of what it is asking you. It is not enough to simply do practice problems and understand concepts, but know every page of the financial portion as outlined. For example, in my exam there was a simple question regarding the COGS, which the formula is very straight forward; however, the question does not provide you with a beginning or ending inventory and details additional purchases to other items regarding inventory. After reading this, I have come to the conclusuion that even if you know the formula, that won’t help because there was so many different ways to ask a question. I am highly disappointed in the new updates that have been enforced and pushed upon exam candidates that have already started on the pre-updated testing. If I had known that exam material would be changing to such difficult areas, I would have potentially considered sitting for another exam. Hopefully that was somewhat helpful, but I think it’s good to know what the exam is actually like instead of expecting 20% financials on the test and being presented with 40%.

    • Meghan D says:

      Thanks for sharing!

    • SF says:

      I couldn’t agree more! I wrote the 2018 exam and missed the pass rate by 12 points. I wrote the 2019 exam and missed it by 45 points, I then wrote it again, and missed it by 16 points, I wrote it again for the third time and missed it by 25 points! I not only used Gleim, but eventually ordered the IIA book and unfortunately, the questions on the exam were vague, difficult to understand, and i believe 70% of what i actually studied wasn’t even present within the exam. I am not sure what other way of studying I can try, but really it’s ridiculous because part 1 and 2 i passed on the first try! It’s either that the books need to be better updated for studying, and actually include materials we could potentially see on the exam OR the exam needs better questions.

  • Lio says:

    For anyone who’s planning to sit on the CIA Exam part 3 this year, here’s my experience as shared with Stephanie. Good luck and I sincerely hope you also pass just like I did!

    https://ipasstheciaexam.com/iia-cia-exam-changes/#ReaderFeedbackontheNew2019CIAExam

  • J says:

    I’m confused, if the syllabus says that the financial/accounting portion is 20%, shouldn’t that mean 20 questions max? How could there be 40% related to this section?

    • Meghan D says:

      Hi J,

      If you are referring to Lio’s synopsis, you cannot rely on this as the actual weight. Lio commented based on what he felt he saw on the exam (note that this is based on feelings and not necessarily on fact). When you’re studying and preparing, only rely on the weights provided by the IIA.

      Meghan
      IPasstheCIAExam

  • Dee says:

    I finally passed part 3 on my third attempt!!! Now I want to give advice that may help others. I am internal auditor but the content in part 3 was mostly new to me, which made passing difficult. My advice is more so for people who are unfamiliar with the content in part 3 and having a hard time passing.

    If you are using only Gleim to study, I highly recommend purchasing the Part 3 CIA learning system for the book. Unfortunately, you cannot purchase just the book but you need it! What I have learned from my experience is that for Part 3 you need both the CIA learning book and Gleim questions to succeed if you are struggling to pass. In the past I only studied with Gleim but I changed it up this time around. If you have not passed using Gleim, I recommend changing up your studying and reading the CIA learning book. The CIA learning book reads like a textbook and explains things in detail. Also, the way that the information is organized in the book helps you understand how things flow and connect. For ex. EU, WIP, FIFO, Weighted Avg, all relate to Process Costing and NPV, IRR, ARR, & payback period all relate to Capital Budgeting. The CIA learning book also includes a lot more content on topics like ITGCs, CRM, SRM, operating systems, and mainframe systems just to name a few that Gleim doesn’t. On the flip side, Gleim includes information on application controls, SWOT analysis, Strategic Mgmt, etc. that the 2019 CIA learning book left out but was on my test. You must be proficient on both ITGC and application controls to pass the exam because they are heavily texted.

    The key to passing part 3 is having a proficiency level understanding for most of the items on the syllabus even though it says that you need to have an awareness level! Take your time studying for this part. I studied for 3 months this time around, spending an entire month on Financial & Managerial Accounting. Go by your own timetable and needs! I read the CIA learning book and reviewed most of the book probably 6 to 7 times. After doing this my understanding of the information was at a proficiency level, meaning I could apply the information presented in a work setting and that was key because I could not do that previously. For example, if you had an Income Statement could you calculate ratios and determine what an increase or decrease in the ratio means? Also, knowing the COGS formula and how a misstatement of ending inventory affects COGS and Gross Profit. Understanding the difference in the ITGCs such as how authentication and authorization controls differ and relate to logical access controls. That is the level of understanding needed to pass.

    I cannot stress enough how important it is to not max out on questions because the exam questions will be different. The key is having an understanding of all topics so you can answer differing questions. Spend as much time as you can re-reading the information in the CIA learning book, focusing on the topics in the syllabus! I make flash cards for each exam and this is the first time I wish I did not because I did not use them and found it easier to review by reading the book. I recommend making flash cards only for ratios and steps in processes such as SDLC and Project Life Cycle, etc. I found flash cards very helpful for that information. Also, for those wondering I really did not spend much time reading the GTAG’s this time around. I did look over the Change and Patch Mgmt Control and Auditing Applications Control GTAGs.

    The last important advice I want to share is each test is different; so do not focus solely on the topics on someone else’s test. For example. unlike Leo I did not experience questions on IT stakeholders, job functions, SDLC, firewall, or disaster recovery but I did get questions on Operating Systems, Change Mgmt, Mainframe systems, encryption, and BYOD. As I stated it is most important to try to be proficient at all items on the syllabus so that you can answer enough questions on any IT, Finance, or Business Accuman topic to pass your exam. And of course a heavy emphasis on all IT and Financial & Managerial Accounting topics since this is most of the exam.

    EXTRA HELPFUL INFO

    I found the financial and managerial topics very challenging since I have not covered these topics in almost 10 years. I watched several lectures from Rutgers University that were extremely helpful that I wanted to share to help others.

    Revenue & Collection Cycle-Auditing-Spring 2014(10)-Helen Brown Liburd
    https://m.youtube.com/watch?v=QpBEOrDqBC0

    Process Costing- Cost & Management Accounting- C6- Professor Noel Cooperberg
    https://www.youtube.com/watch?v=xCznar-MVtU

    Cost Volume Profit Analysis (Part 1)-Intro to Managerial Accounting -Summer 2013-Professor Gershberg
    https://www.youtube.com/watch?v=eUQA3o8_b34&t=23s

    Activity-Based Costing & Management- Intro to Managerial Accounting- Professor Gershberg
    https://www.youtube.com/watch?feature=youtu.be&v=8IKnb-VVxCo&app=desktop

    Transfer Pricing
    https://www.youtube.com/watch?v=kReLyU8gNPU

    • Meghan D says:

      Thank you for all this info, Dee. And congratulations on passing the CIA exam. That is great news!

      Kind regards,
      Meghan
      I Pass the CIA Exam

    • Chloe says:

      Congratulations Dee and thanks for the feedback! Approximately how many hours a week did you study and in total?

      I’ve been told to stick to just one study material and find it interesting that you did otherwise. When studying, did you find yourself studying with Gleim first and then using the CIA learning book to substantiate the areas you didn’t feel as strong?

    • Ali says:

      Hi Dee

      Is CIA learning book from Gleim or IIA? can you please mention the reveiw course here.

  • TANJIN ARA SUFYANI says:

    I am asking some guideline regarding CIA PART 1

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