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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following is an important consideration when providing quality audit communications?

A) Provide a fair and balanced assessment.
B) Include as much detail as possible.
C) Demonstrate knowledge by using technical language.

2. According to the IIA's Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?

A) The auditor does not accept anything that may impair or be presumed to impair her professional judgment
B) The auditor continually improves her proficiency and the effectiveness and quality of her services
C) The auditor is prudent in the use and protection of information acquired in the course of her work

3. What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

A) To ensure that all auditors have a common understanding of the area being audited.
B) To ensure that the work performed by other internal or external assurance providers is considered during audit planning.
C) To ensure that audit procedures are designed to address the risks relevant to the area being audited.

4. Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

A) An organization is subject to newly imposed industry health and safety regulations.
B) An organization must restate its financial statements due to an error in fixed asset valuation.
C) An organization is preparing to launch an enhanced service for its online customer information system.

5. Which of the following statements is appropriate to include in a high-quality internal audit engagement communication?

A) The internal audit team conducted a review of the financial reporting process prior to year-end. The overall findings have been provided for management's consideration prior to the completion of the organization's annual external financial audit.
B) The internal audit team conducted an engagement under the assumption that significant control weaknesses were likely. The purpose of the review was to uncover those weaknesses.
C) The internal audit team noted numerous weaknesses in the organization's internal controls over financial reporting. The team recommends that management determine the root cause of the weaknesses.

Solutions: