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IIA Internal Audit Practitioner Sample Questions:

1. A member of the internal audit team worked eight months ago in an area of the organization that she is now being tasked with auditing. Which of the following would most likely be impacted by her participation in the audit?

A) Objectivity
B) Integrity
C) Competency

2. Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

A) Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration
B) Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals
C) Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations

3. Which of the following is an element of a well-formed audit recommendation?

A) Factual evidence identified during the engagement.
B) Factors that allowed the condition to exist.
C) Measures to prevent recurrence of the condition.

4. Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

A) An organization must restate its financial statements due to an error in fixed asset valuation.
B) An organization is subject to newly imposed industry health and safety regulations.
C) An organization is preparing to launch an enhanced service for its online customer information system.

5. Which of the following interview techniques would be most effective in a fraud investigation?

A) The interviewer should allow the suspect to use his own words and only interrupt if a point requires clarification.
B) The interviewer should be positioned between the suspect and the door to discourage the suspect from leaving during the interview.
C) The interviewer should ensure that only the interviewer and the suspect are present for the interview.

Solutions: