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IIA Internal Audit Practitioner Sample Questions:

1. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

A) The duplication of effort in the review process is unnecessary.
B) The cost of the control outweighs the benefit.
C) The inherent risk of travel expense fraud is low.

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

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

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

4. Which of the following best describes the purpose of a detailed engagement risk assessment?

A) To ensure that all risks identified during the engagement planning process are addressed during the audit.
B) To prioritize risks to the activity's objectives, according to the likelihood of occurrence.
C) To consider significant risks to the activity's objectives and the means by which the potential impact of risk is kept to an acceptable level.

5. A senior internal auditor is planning a compliance audit of the organization's global purchasing department.
Which of the following criteria is a relevant consideration for establishing the engagement objectives?

A) Location of all global operations that acquire goods through the organization's global purchasing department
B) A list of all items acquired through the organization's global purchasing department in the past year
C) Current governance laws and regulations in the countries in which the organization operates

Solutions: