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IIA Internal Audit Practitioner Sample Questions:

1. When is it appropriate for the internal auditor to determine the engagement's scope and objectives?

A) During the planning of the engagement
B) In the final engagement report
C) During the performance of the engagement

2. 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 before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.
C) 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.

3. Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

A) The CAE regularly attends and participates in critical executive management meetings for the organization.
B) The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.
C) The CAE has direct access to records, personnel, and physical properties throughout the organization.

4. Management has decided that transactions less than $50 no longer require authorization. Which of the following risk management strategies does this represent?

A) Accept.
B) Avoid.
C) Reduce.

5. Which of the following would provide the most reliable information on a process under review?

A) Documentation of a walkthrough conducted on the process under review
B) Testimonial evidence, such as survey responses, on the process under review
C) Benchmarking information on the process under review compared to similar industries or organizational units

Solutions: