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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following would be a common benefit of using generalized audit software?

A) It enables internal auditors to analyze very large quantities of data.
B) It eliminates the need to obtain access privileges to relevant and reliable data.
C) It enables internal auditors to perform tests on data with the assistance of the organization's IT personnel.

2. Which of the following is the best audit procedure to determine whether all of a bank's loans are backed by sufficient collateral, properly aged as to current payments, and properly categorized as current or noncurrent?

A) Select a discovery sample of all loan applications to determine whether each application contains a statement of collateral.
B) Use generalized audit software to read the total loan file, age the file by last payment due, and select a statistical sample stratified by the current and aged population. Examine each loan selected for proper collateralization and aging.
C) Select a block sample of all loans in excess of a specified dollar limit and determine whether they are current and properly categorized. For each loan approved, verify aging and categorization.

3. To be organizationally independent, the chief audit executive should administratively report to which of the following?

A) The board of directors.
B) The chief executive officer.
C) The audit committee.

4. Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

A) The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
B) The address on one of the vendor invoices matches an employee's residential address.
C) The invoices submitted by one of the organization's vendors are more than six months old.

5. An internal auditor wants to use computerized audit tools and techniques. Which of the following is a common obstacle that the auditor is likely to face?

A) Difficulty getting the requisite IT personnel to conduct the tests.
B) A lack of specialist IT skills needed to use the tools.
C) Difficulty obtaining access privileges to relevant and reliable data.

Solutions: