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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following activities would compromise the independence of the internal audit activity and therefore should not be performed by an internal auditor?

A) Coordinating risk management activities.
B) Setting the organization's risk appetite.
C) Championing the establishment of organization-wide risk management.

2. Which of the following is a purpose of an embedded audit module?

A) It verifies the correctness of account balances on a master file.
B) It identifies program code that may have been inserted for unauthorized purposes.
C) It enables continuous monitoring of transaction processing.

3. An internal auditor is planning a business continuity audit engagement at a remote manufacturing plant. During planning interviews, the plant manager stated that the local Environmental, Health, and Safety (EHS) Department, which reports to the plant manager, had completed a similar review six months ago. The EHS review did not find any significant weaknesses. How should the internal auditor consider the EHS review results in the current audit engagement planning?

A) Ignore the EHS review results, as the department is not a reliable source of information due to its lack of objectivity and independence.
B) Evaluate the objectivity and competency of the EHS reviewers and their work to determine whether their review results may be relied upon.
C) Recommend canceling the audit engagement, as it would be a duplication of effort to revisit the same process already reviewed by EHS.

4. 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) Detective
B) Directive
C) Preventive

5. During engagement planning, which of the following would provide an internal auditor with a sufficient understanding of the process being audited?

A) The objectives and risk management of the process.
B) The mission, vision, and strategic objectives of the organization.
C) Management's opinion on the thoroughness of a previous internal audit of the same process.

Solutions: