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IIA Internal Audit Practitioner Sample Questions:

1. 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.

2. Which of the following analytical procedures would be most effective for an internal auditor to examine changes in performance over time?

A) Ratio analysis
B) Trend analysis
C) Analysis of common size financial statements

3. During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid
30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?

A) Poor cash management due to potentially lost payment discounts
B) Poor cash management due to potentially paying fraudulent invoices
C) Poor cash management due to potentially paying the wrong vendors

4. 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) Lack of background checks.
C) Vague job descriptions.

5. The internal audit activity has been tasked with evaluating the effectiveness of the organization's risk management processes. Which of the following activities are appropriate and relevant to consider in the overall evaluation?

A) An external audit of the organization's corporate social responsibility and sustainability management, including communication of findings to management and the board
B) Evaluation of risk management effectiveness obtained during multiple audit engagements over the past year
C) The chief audit executive's observations of the organization's finance committee

Solutions: