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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following statements is true with regard to the adequacy of a control design?

A) Even if a control is effective, it may not achieve the control objective due to an inadequate design.
B) Regardless of the adequacy of control design, it is important to evaluate the operating effectiveness of all key controls to justify the integrity of the internal audit process.
C) Control designs are considered adequate as long as secondary controls will effectively mitigatethe risk.

2. Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?

A) Establish a code of ethics for the internal audit activity.
B) Establish an internal audit charter.
C) Approve the internal audit budget.

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

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

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

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

5. The chief audit executive scheduled an exit meeting to discuss conclusions and recommendations with management before issuing the final engagement communication. Which of the following describes the primary reason that the exit meeting should be documented?

A) The information may be needed if a disagreement about the content arises
B) The Standards require that the internal auditor document exit meetings
C) The results of the discussion form part of the internal auditor's performance review

Solutions: