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IIA Internal Audit Practitioner Sample Questions:

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

A) The organization implemented formal operational risk management processes.
B) Management established policies and procedures that state risk will be considered.
C) Management openly discusses both risks and opportunities facing the organization.

2. To be organizationally independent, the chief audit executive should administratively report to which of the following?

A) The audit committee.
B) The board of directors.
C) The chief executive officer.

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

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

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

5. Management has decided that transactions less than $50 no longer require authorization. Which of the following risk management strategies does this represent?

A) Accept.
B) Reduce.
C) Avoid.

Solutions: