IIA IIA-IAP Online Practice Questions and Exam Preparation

IIA IIA-IAP Online Questions & Answers

• Question 1:

  During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

  A. Final report from an external financial audit of the process under review, which includes the status of management's corrective action plans
  B. Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management
  C. The internal audit activity's annual audit plan and discussions that led to its development
  B. Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management

• Question 2:

  An internal auditor discovers that a vendor had submitted invoices and was paid for services not rendered. Which of the following controls is most appropriate to address this type of issue?

  A. The accounts payable clerk should compare the acknowledgment of goods and services to the invoice.
  B. The supervisor should observe the input of invoices into the payment system.
  C. The supervisor should verify that the amount paid agrees with the contracted amount.
  A. The accounts payable clerk should compare the acknowledgment of goods and services to the invoice.

• Question 3:

  An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

  A. The mean of all actual salary amounts.
  B. Similar data for the department from two prior periods.
  C. Budgeted information of another organization in the same industry.
  B. Similar data for the department from two prior periods.

• Question 4:

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

• Question 5:

  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 capacity.
  B. Risk appetite.
  C. Risk perception.
  B. Risk appetite.

• Question 6:

  Which of the following best describes a compliance audit engagement?

  A. The auditor reviews controls of the oil shale mining process to assess adherence to safety regulations established by local authorities.
  B. The auditor analyzes the economic activity of the organization as measured and reported using international accounting standards.
  C. The auditor conducts a review to provide assurance that the external service provider of maintenance for the organization has an effective risk management process.
  A. The auditor reviews controls of the oil shale mining process to assess adherence to safety regulations established by local authorities.

• Question 7:

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

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

• Question 8:

  Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

  A. Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations
  B. Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration
  C. Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals
  C. Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals

• Question 9:

  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 invoices submitted by one of the organization's vendors are more than six months old.
  C. The address on one of the vendor invoices matches an employee's residential address.
  C. The address on one of the vendor invoices matches an employee's residential address.

• Question 10:

  Which of the following consulting engagements leverages an internal auditor's risk and control knowledge to help the organization keep abreast of emerging risks?

  A. Advising on control designs
  B. Assisting with the development of policies and procedures
  C. Facilitating organizational control self-assessments
  C. Facilitating organizational control self-assessments