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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following would have the most direct impact on management's decision regarding the amount of risk that is considered acceptable?

A) Risk perception.
B) Risk capacity.
C) Risk appetite.

2. Which of the following analytical procedures would be most effective for an internal auditor to examine changes in performance over time?

A) Analysis of common size financial statements
B) Ratio analysis
C) Trend analysis

3. During a procurement process consulting engagement, the internal auditors reviewed contracts for the hospital's supply of medicine. Which of the following would the internal auditors most likely recommend to improve the effectiveness of the procurement process?

A) The procurement process must be comprehensively documented.
B) The procurement process should begin with clearly specified needs.
C) Only qualified procurement professionals should manage the procurement process.

4. According to the IIA's Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?

A) The auditor does not accept anything that may impair or be presumed to impair her professional judgment
B) The auditor is prudent in the use and protection of information acquired in the course of her work
C) The auditor continually improves her proficiency and the effectiveness and quality of her services

5. Which of the following best describes the purpose of a detailed engagement risk assessment?

A) To consider significant risks to the activity's objectives and the means by which the potential impact of risk is kept to an acceptable level.
B) To prioritize risks to the activity's objectives, according to the likelihood of occurrence.
C) To ensure that all risks identified during the engagement planning process are addressed during the audit.

Solutions: