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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following conditions would threaten an internal auditor's objectivity?

A) Using knowledge that the internal auditor gained in his previous position to update systems and controls descriptions.
B) Providing consulting services over the activity where the internal auditor was employed two years prior.
C) Providing assurance services over the activity where the internal auditor was employed 10 months prior.

2. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

A) The duplication of effort in the review process is unnecessary.
B) The inherent risk of travel expense fraud is low.
C) The cost of the control outweighs the benefit.

3. In the absence of any action to control or modify the circumstances, the probability of loss arising from circumstances existing in an environment is known as which of the following types of risk?

A) Control
B) Residual
C) Inherent

4. Which of the following statements is true regarding engagement status meetings?

A) They mainly involve one-way communication from the internal auditor to management of the area under review.
B) They should involve the chief audit executive and senior management.
C) They are expected to enhance the relationships between the internal audit activity and management of the area under review.

5. Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

A) Expertise in detecting and investigating fraud.
B) Sufficient knowledge to evaluate the risk of fraud.
C) Specialized skills for developing and implementing controls to prevent fraud.

Solutions: