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IIA Internal Audit Practitioner Sample Questions:

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

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

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

3. What is the primary purpose of a preliminary survey?

A) To determine why the engagement is being performed.
B) To develop a risk and control matrix for the process under review.
C) To gain an understanding of the process under review.

4. Which of the following describes how the internal audit activity can add the greatest value by assisting management with internal controls?

A) Internal auditors should monitor how internal controls are functioning.
B) Internal auditors should evaluate the effectiveness and efficiency of internal controls.
C) Internal auditors should assist in designing strong controls.

5. During engagement planning, which of the following would provide an internal auditor with a sufficient understanding of the process being audited?

A) Management's opinion on the thoroughness of a previous internal audit of the same process.
B) The objectives and risk management of the process.
C) The mission, vision, and strategic objectives of the organization.

Solutions: