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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. An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

A) Budgeted information of another organization in the same industry.
B) The mean of all actual salary amounts.
C) Similar data for the department from two prior periods.

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

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

4. What is the primary purpose of a preliminary survey?

A) To gain an understanding of the process under review.
B) To determine why the engagement is being performed.
C) To develop a risk and control matrix for the process under review.

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

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

Solutions: