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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following is a purpose of an embedded audit module?

A) It identifies program code that may have been inserted for unauthorized purposes.
B) It verifies the correctness of account balances on a master file.
C) It enables continuous monitoring of transaction processing.

2. A senior police officer was in charge of the cash fund used for undercover operations. In this situation, which of the following would likely be considered a red flag?

A) The officer has no professional qualifications.
B) The officer appears to be living beyond his means.
C) The officer never speaks about the operations.

3. Which of the following is considered an organization-level control, as opposed to process-level or transaction- level?

A) Segregated budgeting responsibilities of finance employees, including review and approval of financial reports.
B) Personnel policies requiring the employment of competent personnel, based on training and experience, to manage complex functions such as accounting and financial reporting.
C) Supervision of finance employees, including day-to-day oversight and periodic performance evaluations.

4. An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

A) Budgeted information of another organization in the same industry.
B) Similar data for the department from two prior periods.
C) The mean of all actual salary amounts.

5. Which of the following is an example of a detective control?

A) Segregation of duties.
B) Reconciliations.
C) Required authorizations.

Solutions: