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IIA Internal Audit Practitioner Sample Questions:

1. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

A) The cost of the control outweighs the benefit.
B) The duplication of effort in the review process is unnecessary.
C) The inherent risk of travel expense fraud is low.

2. Which of the following would be considered out of scope for a purchasing process audit engagement?

A) Authorization of requisitions
B) Control of goods
C) Matching goods received to requisitions

3. Which of the following actions could the chief audit executive take to most directly support the requirement that internal auditors maintain proficiency?

A) Provide training and mentoring opportunities
B) Obtain approval of the internal audit activity's purpose, authority, and responsibility
C) Develop a risk-based internal audit plan

4. Which of the following best describes the difference between inherent risk and residual risk?

A) Inherent risk is the level of risk the organization is willing to accept, residual risk is the level of risk deemed unacceptable by the organization.
B) Inherent risk is the level of risk in the absence of any targeted actions or controls to alter its severity, residual risk is the risk remaining after implementing corrective actions.
C) Inherent risk is the level of risk before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.

5. Which of the following statements best describes quality audit workpapers?

A) They should be electronic and indexed.
B) They should be understandable and complete.
C) They should be relevant and interesting.

Solutions: