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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following statements is true regarding root cause analysis?

A) Root cause analysis enables internal auditors to reveal multiple causes and recommend control enhancements for each cause identified.
B) Root cause analysis enables internal auditors to improve the effectiveness and efficiency of the organization's governance, risk management, and control processes.
C) Root cause analysis is a simple, straightforward tool that can be implemented by internal auditors who may not possess relevant subject matter expertise.

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 information may be needed if a disagreement about the content arises
C) The results of the discussion form part of the internal auditor's performance review

3. Which of the following conditions would threaten an internal auditor's objectivity?

A) Providing consulting services over the activity where the internal auditor was employed two years prior.
B) Providing assurance services over the activity where the internal auditor was employed 10 months prior.
C) Using knowledge that the internal auditor gained in his previous position to update systems and controls descriptions.

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

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

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

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