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IIA Internal Audit Practitioner Sample Questions:

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

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

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 an engagement under the assumption that significant control weaknesses were likely. The purpose of the review was to uncover those weaknesses.
C) 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.

3. Which of the following is considered an organization-level control, as opposed to process-level or transaction- level?

A) Segregated budgeting responsibilities of finance employees, including review and approval of financial reports.
B) Personnel policies requiring the employment of competent personnel, based on training and experience, to manage complex functions such as accounting and financial reporting.
C) Supervision of finance employees, including day-to-day oversight and periodic performance evaluations.

4. 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.

5. An internal auditor is conducting a human resources audit engagement. Which of the following observations would increase the probability of fraud?

A) Poor interview skills.
B) Vague job descriptions.
C) Lack of background checks.

Solutions: