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IIA IAA-IAP Exam Syllabus Topics:

IIA Internal Audit Practitioner Sample Questions:

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

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

2. Which of the following best explains why internal auditors should identify risk scenarios during a risk assessment of the area being audited?

A) To evaluate the adequacy of management's risk management process in the area being audited.
B) To determine what would prevent the achievement of objectives in the area being audited.
C) To determine whether established controls are operating effectively to mitigate critical risks.

3. An internal auditor wants to use computerized audit tools and techniques. Which of the following is a common obstacle that the auditor is likely to face?

A) Difficulty obtaining access privileges to relevant and reliable data.
B) A lack of specialist IT skills needed to use the tools.
C) Difficulty getting the requisite IT personnel to conduct the tests.

4. 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 doesn't affect the adequacy of the internal controls because the existing process controls ensure that invoices are promptly and accurately paid.
C) 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.

5. Internal and external benchmarking by the internal audit activity are examples of which of the following?

A) Confirmation
B) Analytical procedures
C) Inquiry

Solutions: