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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following statements is true regarding engagement status meetings?

A) They mainly involve one-way communication from the internal auditor to management of the area under review.
B) They are expected to enhance the relationships between the internal audit activity and management of the area under review.
C) They should involve the chief audit executive and senior management.

2. Which of the following best ensures that the internal audit activity is free from undue interference from management?

A) An audit charter that defines the chief audit executive's functional reporting relationship with the board.
B) A board audit committee that is composed of competent, independent members.
C) Audit policies and procedures that are comprehensive and well-documented, in accordance with the Standards.

3. Which of the following activities would compromise the independence of the internal audit activity and therefore should not be performed by an internal auditor?

A) Coordinating risk management activities.
B) Championing the establishment of organization-wide risk management.
C) Setting the organization's risk appetite.

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

5. 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) Integrity
B) Competency
C) Objectivity

Solutions: