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IIA Internal Audit Practitioner Sample Questions:

1. During a review of the payroll department, a payroll associate informs the internal auditor, in confidence, that a co-worker is under a great deal of personal stress and has made several uncharacteristic mistakes over the past few weeks. The payroll associate asks the auditor to be sympathetic to the co-worker when drafting the audit findings. If the auditor adjusts the audit findings in consideration of this request, which of the following IIA Code of Ethics principles would be violated?

A) Integrity and Objectivity.
B) Objectivity and Confidentiality.
C) Integrity and Confidentiality.

2. As part of the annual training plan, the chief audit executive (CAE) has arranged for a local audit training institute to provide an in-house training session for the internal audit team. Which of the following best explains the primary purpose of this approach?

A) It helps the internal audit activity attain an appropriate organizational status to maintain independence.
B) It helps the internal auditors maintain a required level of proficiency.
C) It assists the CAE with assessing the results of the internal audit team's development efforts.

3. An internal auditor is reporting on the organization's asset management system. Which of the following would likely add the greatest value to the organization?

A) Confirmation that controls are operating efficiently.
B) Reports that state identified deficiencies were remedied during the audit.
C) Recommendations aimed at reducing risk exposure.

4. Which of the following activities would compromise the independence of the internal audit activity and therefore should not be performed by an internal auditor?

A) Coordinating risk management activities.
B) Championing the establishment of organization-wide risk management.
C) Setting the organization's risk appetite.

5. Operational management has asked the internal auditor for recommendations regarding an ineffective process. According to IIA guidance, which of the following would be the auditor's most appropriate response?

A) Explain that only management should recommend and implement the corrective action.
B) Agree to offer recommendations based on observations and conclusions.
C) Refrain from providing recommendations to preserve audit independence.

Solutions: