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IIA Internal Audit Practitioner Sample Questions:

1. An internal auditor is reporting on the organization's asset management system. Which of the following would likely add the greatest value to the organization?

A) Recommendations aimed at reducing risk exposure.
B) Reports that state identified deficiencies were remedied during the audit.
C) Confirmation that controls are operating efficiently.

2. Which of the following is an example of a detective control?

A) Required authorizations.
B) Reconciliations.
C) Segregation of duties.

3. An internal auditor was gathering information regarding the receiving process and decided that a narrative memorandum was the best way to document the process. Which of the following explanations best supports the auditor's decision?

A) The department has comprehensive manuals
B) The process is simple and does not need a visual depiction
C) The audit engagement is not considering efficiency

4. An internal auditor is performing an internal control assessment at a manufacturing company. The auditor observed that the accounts payable clerks have the ability to create new vendors without management's review and approval. How should the auditor document this observation?

A) The observation doesn't affect the adequacy of the internal controls because the existing process controls ensure that invoices are promptly and accurately paid.
B) The observation is a sign of adequate internal controls; however, effectiveness testing should be performed to ensure that the controls are operating as designed and intended.
C) The observation is an internal control weakness; therefore, additional testing should be performed to determine whether secondary mitigating controls exist or whether the control should be redesigned.

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

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

Solutions: