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IIA-IAP Internal Audit Practitioner

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IIA · IIA-IAP

Free IIA-IAP Exam Dumps Preview

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Question 1

Single choice

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.

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Correct answerC

Question 2

Single choice

An internal auditor is performing an internal control assessment at a manufacturing company. The auditor observed that the accounts payable clerks have the ability to create new vendors without management's review and approval.

How should the auditor document this observation?

A
The observation doesn't affect the adequacy of the internal controls because the existing process controls ensure that invoices are promptly and accurately paid.
B
The observation is an internal control weakness; therefore, additional testing should be performed to
determine whether secondary mitigating controls exist or whether the control should be redesigned.
C
The observation is a sign of adequate internal controls; however, effectiveness testing should be
performed to ensure that the controls are operating as designed and intended.

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Correct answerB

Question 3

Single choice

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.

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Correct answerB

Question 4

Single choice

Which of the following describes how the internal audit activity can add the greatest value by assisting management with internal controls?

A
Internal auditors should assist in designing strong controls.
B
Internal auditors should monitor how internal controls are functioning.
C
Internal auditors should evaluate the effectiveness and efficiency of internal controls.

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Correct answerC

Question 5

Single choice

Which of the following would an internal auditor most likely use to document a complex process that includes risks and controls, timelines, and ownership of key steps?

A
Process map.
B
Detailed flowchart.
C
Risk and control matrix.

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Correct answerC

Question 6

Single choice

Which of the following is most likely to be considered an internal audit assurance service?

A
Process design engagement.
B
Facilitation engagement.
C
Compliance engagement.

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Correct answerC

Question 7

Single choice

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

A
Social media
B
Spreadsheet software
C
Word processing software

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Correct answerB

Question 8

Single choice

Which of the following best demonstrates that appropriate and sufficient resources were allocated to an audit engagement to achieve its objectives?

A
Staff skills audit.
B
Approved engagement work program.
C
Post-engagement survey of management of the audited area.

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Correct answerB

Question 9

Single choice

A newly hired internal auditor has been asked to examine the sales of a specific product over the last four years.

Which of the following analytical review techniques should the auditor employ?

A
Ratio analysis.
B
Trend analysis.
C
External benchmarking.

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Correct answerB

Question 10

Single choice

In a standard process mapping document, a diamond shape typically represents which of the following?

A
Process or operation.
B
Decision.
C
Flow line.

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Correct answerB

Question 11

Single choice

Which of the following statements best describes quality audit workpapers?

A
They should be relevant and interesting.
B
They should be electronic and indexed.
C
They should be understandable and complete.

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Correct answerC

Question 12

Single choice

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

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

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Correct answerA

Question 13

Single choice

An internal auditor discovers a number of control concerns while reviewing the organization's online payment system and decides to interview key employees involved in the system's design and maintenance.

Which of the following best describes the results of those interviews?

A
Testimonial evidence.
B
Documentary evidence.
C
Analytical evidence.

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Correct answerA

Question 14

Single choice

In addition to the internal auditor, which of the following parties need to be present at an exit or closing conference?

A
Audit committee members
B
Management over areas covered by the engagement
C
The chief executive officer

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Correct answerB

Question 15

Single choice

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.

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Correct answerA

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Internal Audit Practitioner

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