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IIA Internal Audit Practitioner Sample Questions:

1. Operational management has asked the internal auditor for recommendations regarding an ineffective process. According to IIA guidance, which of the following would be the auditor's most appropriate response?

A) Explain that only management should recommend and implement the corrective action.
B) Agree to offer recommendations based on observations and conclusions.
C) Refrain from providing recommendations to preserve audit independence.

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

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

3. What is the primary purpose of a preliminary survey?

A) To gain an understanding of the process under review.
B) To determine why the engagement is being performed.
C) To develop a risk and control matrix for the process under review.

4. During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

A) Final report from an external financial audit of the process under review, which includes the status of management's corrective action plans
B) The internal audit activity's annual audit plan and discussions that led to its development
C) Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management

5. A senior internal auditor is using a risk and control matrix to facilitate an internal control assessment of the fixed asset accounting process. Which of the following activities would aid the auditor in determining inputs for the risk and control matrix?

A) Reviewing the results of control effectiveness testing of the fixed asset capitalization subprocess.
B) Management's cost-benefit analysis of internal control alternatives considered in the design of the fixed asset accounting process.
C) Interviews with fixed asset management, control process walkthroughs, and internal control questionnaires.

Solutions: