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IIA Internal Audit Practitioner Sample Questions:

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

2. Which of the following would be the best indicator that the organization's risk management processes are operating effectively?

A) The organization implemented formal operational risk management processes.
B) Management openly discusses both risks and opportunities facing the organization.
C) Management established policies and procedures that state risk will be considered.

3. When is it appropriate for the internal auditor to determine the engagement's scope and objectives?

A) During the planning of the engagement
B) During the performance of the engagement
C) In the final engagement report

4. According to IIA guidance, which one of the following hiring strategies is most appropriate to fill internal audit positions?

A) Hire the required number of internal auditors to accomplish the audit plan
B) Recruit candidates to fulfill the skills requirement of the internal audit activity
C) Assess each candidate's competency for an upcoming audit

5. An internal auditor is planning a business continuity audit engagement at a remote manufacturing plant. During planning interviews, the plant manager stated that the local Environmental, Health, and Safety (EHS) Department, which reports to the plant manager, had completed a similar review six months ago. The EHS review did not find any significant weaknesses. How should the internal auditor consider the EHS review results in the current audit engagement planning?

A) Recommend canceling the audit engagement, as it would be a duplication of effort to revisit the same process already reviewed by EHS.
B) Ignore the EHS review results, as the department is not a reliable source of information due to its lack of objectivity and independence.
C) Evaluate the objectivity and competency of the EHS reviewers and their work to determine whether their review results may be relied upon.

Solutions: