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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. Internal and external benchmarking by the internal audit activity are examples of which of the following?

A) Analytical procedures
B) Inquiry
C) Confirmation

3. A senior internal auditor is using a risk and control matrix to facilitate an internal control assessment of the fixed asset accounting process. Which of the following activities would aid the auditor in determining inputs for the risk and control matrix?

A) Management's cost-benefit analysis of internal control alternatives considered in the design of the fixed asset accounting process.
B) Interviews with fixed asset management, control process walkthroughs, and internal control questionnaires.
C) Reviewing the results of control effectiveness testing of the fixed asset capitalization subprocess.

4. If an internal auditor needs to evaluate compliance with an internal control policy, which sampling method is most appropriate?

A) Attribute sampling
B) Probability-proportional-to-size sampling
C) Difference estimation sampling

5. According to the IIA's Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?

A) The auditor continually improves her proficiency and the effectiveness and quality of her services
B) The auditor is prudent in the use and protection of information acquired in the course of her work
C) The auditor does not accept anything that may impair or be presumed to impair her professional judgment

Solutions: