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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following interview techniques would be most effective in a fraud investigation?

A) The interviewer should allow the suspect to use his own words and only interrupt if a point requires clarification.
B) The interviewer should ensure that only the interviewer and the suspect are present for the interview.
C) The interviewer should be positioned between the suspect and the door to discourage the suspect from leaving during the interview.

2. To be organizationally independent, the chief audit executive should administratively report to which of the following?

A) The chief executive officer.
B) The board of directors.
C) The audit committee.

3. An internal auditor is performing an internal control assessment at a manufacturing company. The auditor observed that the accounts payable clerks have the ability to create new vendors without management's review and approval. How should the auditor document this observation?

A) The observation is an internal control weakness; therefore, additional testing should be performed to determine whether secondary mitigating controls exist or whether the control should be redesigned.
B) The observation is a sign of adequate internal controls; however, effectiveness testing should be performed to ensure that the controls are operating as designed and intended.
C) The observation doesn't affect the adequacy of the internal controls because the existing process controls ensure that invoices are promptly and accurately paid.

4. Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

A) Expertise in detecting and investigating fraud.
B) Specialized skills for developing and implementing controls to prevent fraud.
C) Sufficient knowledge to evaluate the risk of fraud.

5. Which of the following describes an internal auditor's use of external benchmarking?

A) The auditor evaluates operating income margin between geographical areas within an organization to analyze its profitability.
B) The auditor compares return on equity for a beverage company against its competitor to analyze profitability.
C) The auditor calculates the net profit margin for a business segment to analyze the profitability.

Solutions: