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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. An internal auditor discovers that a vendor had submitted invoices and was paid for services not rendered. Which of the following controls is most appropriate to address this type of issue?

A) The supervisor should observe the input of invoices into the payment system.
B) The supervisor should verify that the amount paid agrees with the contracted amount.
C) The accounts payable clerk should compare the acknowledgment of goods and services to the invoice.

3. Which of the following describes how the internal audit activity can add the greatest value by assisting management with internal controls?

A) Internal auditors should evaluate the effectiveness and efficiency of internal controls.
B) Internal auditors should monitor how internal controls are functioning.
C) Internal auditors should assist in designing strong controls.

4. A senior police officer was in charge of the cash fund used for undercover operations. In this situation, which of the following would likely be considered a red flag?

A) The officer has no professional qualifications.
B) The officer appears to be living beyond his means.
C) The officer never speaks about the operations.

5. According to IIA guidance, which of the following is the primary criterion that should determine the extent of supervision required for an audit engagement?

A) Whether the engagement involves possible violations of laws and governmental regulations.
B) The number of hours approved by the board for that engagement.
C) The proficiency of the internal auditors and the complexity of the engagement.

Solutions: