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IIA Internal Audit Practitioner Sample Questions:

1. 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.

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

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

3. Which of the following tools would assist with the coordination of efforts between the internal audit team and operational management?

A) Automated workpapers.
B) Continuous auditing.
C) Control self-assessment.

4. Which of the following is the most appropriate audit objective?

A) Assess compliance with human resources hiring and compensation policies.
B) Analyze the turnover rates in mining and production subsidiaries.
C) Evaluate common practices of hiring via interviews with responsible personnel.

5. Which of the following is a purpose of an embedded audit module?

A) It enables continuous monitoring of transaction processing.
B) It verifies the correctness of account balances on a master file.
C) It identifies program code that may have been inserted for unauthorized purposes.

Solutions: