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IIA-IAP Real Exam Questions

Internal Audit Practitioner

100 questions available · Page 1 of 10

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Question 1 Single choice

If an internal auditor needs to evaluate compliance with an internal control policy, which sampling method is most appropriate?

  1. A

    Attribute sampling

  2. B

    Difference estimation sampling

  3. C

    Probability-proportional-to-size sampling

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Correct answer: A

Question 2 Single choice

Which of the following would be the best indicator that the organization's risk management processes are operating effectively?

  1. A

    Management openly discusses both risks and opportunities facing the organization.

  2. B

    Management established policies and procedures that state risk will be considered.

  3. C

    The organization implemented formal operational risk management processes.

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Correct answer: A

Question 3 Single choice

As part of the annual training plan, the chief audit executive (CAE) has arranged for a local audit training institute to provide an in-house training session for the internal audit team.

Which of the following best explains the primary purpose of this approach?

  1. A

    It helps the internal auditors maintain a required level of proficiency.

  2. B

    It helps the internal audit activity attain an appropriate organizational status to maintain independence.

  3. C

    It assists the CAE with assessing the results of the internal audit team's development efforts.

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Correct answer: A

Question 4 Single choice

Which of the following is an example of a detective control?

  1. A

    Segregation of duties.

  2. B

    Reconciliations.

  3. C

    Required authorizations.

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Correct answer: B

Question 5 Single choice

Which of the following is the most appropriate audit objective?

  1. A

    Analyze the turnover rates in mining and production subsidiaries.

  2. B

    Evaluate common practices of hiring via interviews with responsible personnel.

  3. C

    Assess compliance with human resources hiring and compensation policies.

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Correct answer: C

Question 6 Single choice

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

  1. A

    To ensure that all risks identified during the engagement planning process are addressed during the audit.

  2. B

    To prioritize risks to the activity's objectives, according to the likelihood of occurrence.

  3. C

    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.

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Correct answer: C

Question 7 Single choice

What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

  1. A

    To ensure that audit procedures are designed to address the risks relevant to the area being audited.

  2. B

    To ensure that all auditors have a common understanding of the area being audited.

  3. C

    To ensure that the work performed by other internal or external assurance providers is considered during audit planning.

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Correct answer: A

Question 8 Single choice

Which of the following is an example of criteria in an engagement communication?

  1. A

    Annual business conduct training was not performed over the past two years due to inadequate operating budgets.

  2. B

    The audit test was designed to evaluate compliance with the organization's policies and procedures related to business conduct and ethics.

  3. C

    As a result of inadequate business conduct training, 16% of the executive team was unaware of their obligation to report potential conflicts of interest.

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Correct answer: B

Question 9 Single choice

When determining the appropriate level of resources needed for an engagement, which of the following would be the first step?

  1. A

    Determine the sufficiency of internal audit staff

  2. B

    Identify required technology and audit tools

  3. C

    Determine travel and related costs for the engagement

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Correct answer: A

Question 10 Single choice

During an assurance engagement of an organization's procurement process, an internal auditor obtained the policy that specified the authorized dollar limits for invoices.
This document would best support which of the following attributes of an audit report?

  1. A

    Effect

  2. B

    Condition

  3. C

    Criteria

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Correct answer: C