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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following statements is true regarding engagement status meetings?

A) They mainly involve one-way communication from the internal auditor to management of the area under review.
B) They should involve the chief audit executive and senior management.
C) They are expected to enhance the relationships between the internal audit activity and management of the area under review.

2. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

A) The duplication of effort in the review process is unnecessary.
B) The cost of the control outweighs the benefit.
C) The inherent risk of travel expense fraud is low.

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 audit procedures are designed to address the risks relevant to the area being audited.
C) To ensure that the work performed by other internal or external assurance providers is considered during audit planning.

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

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

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.

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