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IIA Internal Audit Practitioner Sample Questions:

1. What are the typical elements of a risk and control matrix used in the engagement planning process?

A) Experience level of key management personnel, susceptibility of the process to fraud, and process automation.
B) Business objectives, risks to the objectives, and impact and likelihood of the risk occurring.
C) Inherent process risks, as defined in a globally accepted risk and control framework.

2. The chief audit executive scheduled an exit meeting to discuss conclusions and recommendations with management before issuing the final engagement communication. Which of the following describes the primary reason that the exit meeting should be documented?

A) The Standards require that the internal auditor document exit meetings
B) The results of the discussion form part of the internal auditor's performance review
C) The information may be needed if a disagreement about the content arises

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

4. A member of the internal audit team worked eight months ago in an area of the organization that she is now being tasked with auditing. Which of the following would most likely be impacted by her participation in the audit?

A) Integrity
B) Objectivity
C) Competency

5. Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

A) Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration
B) Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals
C) Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations

Solutions: