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IIA Internal Audit Practitioner Sample Questions:

1. Internal and external benchmarking by the internal audit activity are examples of which of the following?

A) Inquiry
B) Confirmation
C) Analytical procedures

2. Which of the following statements is appropriate to include in a high-quality internal audit engagement communication?

A) The internal audit team noted numerous weaknesses in the organization's internal controls over financial reporting. The team recommends that management determine the root cause of the weaknesses.
B) The internal audit team conducted a review of the financial reporting process prior to year-end. The overall findings have been provided for management's consideration prior to the completion of the organization's annual external financial audit.
C) The internal audit team conducted an engagement under the assumption that significant control weaknesses were likely. The purpose of the review was to uncover those weaknesses.

3. Duties in a purchasing system are segregated and performed by different people. One person orders the goods, another person receives the goods, and another pays for the goods. This is an example of which of the following controls?

A) Preventive
B) Detective
C) Directive

4. The engagement supervisor is coordinating an audit of investments and needs to select an audit team member to determine the test attributes. Which of the following team members is most appropriate for the engagement supervisor to select?

A) An auditor with strong leadership skills who has experience leading projects for the IT auditdepartment.
B) An auditor who transferred from the investment department six months prior and has expert knowledge of investments.
C) An auditor who has investment audit experience from a previous organization, but who has never performed investment audits at the current organization.

5. Which of the following best describes a compliance audit engagement?

A) The auditor analyzes the economic activity of the organization as measured and reported using international accounting standards.
B) The auditor conducts a review to provide assurance that the external service provider of maintenance for the organization has an effective risk management process.
C) The auditor reviews controls of the oil shale mining process to assess adherence to safetyregulations established by local authorities.

Solutions: