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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

A) The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.
B) The CAE regularly attends and participates in critical executive management meetings for the organization.
C) The CAE has direct access to records, personnel, and physical properties throughout the organization.

2. 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

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

A) 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.
B) To ensure that all risks identified during the engagement planning process are addressed during the audit.
C) To prioritize risks to the activity's objectives, according to the likelihood of occurrence.

4. Management requested that the chief audit executive (CAE) include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit activity has no expertise in this area. Which of the following would be the most appropriate actions for the CAE?

A) Work with an internal subject matter expert to complete the audit.
B) With management's agreement, amend the audit scope so that specialized expertise is not needed.
C) Accept the request, provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.

5. 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.

Solutions: