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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following best describes the difference between inherent risk and residual risk?

A) Inherent risk is the level of risk before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.
B) Inherent risk is the level of risk in the absence of any targeted actions or controls to alter its severity, residual risk is the risk remaining after implementing corrective actions.
C) Inherent risk is the level of risk the organization is willing to accept, residual risk is the level of risk deemed unacceptable by the organization.

2. Operational management has asked the internal auditor for recommendations regarding an ineffective process. According to IIA guidance, which of the following would be the auditor's most appropriate response?

A) Explain that only management should recommend and implement the corrective action.
B) Agree to offer recommendations based on observations and conclusions.
C) Refrain from providing recommendations to preserve audit independence.

3. Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

A) Specialized skills for developing and implementing controls to prevent fraud.
B) Sufficient knowledge to evaluate the risk of fraud.
C) Expertise in detecting and investigating fraud.

4. Which of the following is a common computer-assisted audit tool used to analyze data?

A) Spreadsheet software
B) Word processing software
C) Social media

5. During an accounts payable audit engagement, the internal auditor identified a risk that vendor invoices may be paid multiple times. Which of the following would be appropriate preventive controls to mitigate this risk?

A) System controls to identify identical invoice numbers and dates from the same vendor prior to payment.
B) Manual controls requiring the reconciliation of paid vendor invoices to monthly invoice statements provided by the vendor.
C) System controls to identify identical invoice amounts from the same vendor that prohibit payment after the initial invoice.

Solutions: