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IIA Internal Audit Practitioner Sample Questions:
1. During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid
30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?
A) Poor cash management due to potentially lost payment discounts
B) Poor cash management due to potentially paying fraudulent invoices
C) Poor cash management due to potentially paying the wrong vendors
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) Refrain from providing recommendations to preserve audit independence.
B) Explain that only management should recommend and implement the corrective action.
C) Agree to offer recommendations based on observations and conclusions.
3. Which of the following situations is most likely to require a compliance engagement from the internal audit activity?
A) An organization must restate its financial statements due to an error in fixed asset valuation.
B) An organization is preparing to launch an enhanced service for its online customer information system.
C) An organization is subject to newly imposed industry health and safety regulations.
4. An internal auditor is conducting a human resources audit engagement. Which of the following observations would increase the probability of fraud?
A) Vague job descriptions.
B) Lack of background checks.
C) Poor interview skills.
5. Which of the following interview techniques would be most effective in a fraud investigation?
A) The interviewer should allow the suspect to use his own words and only interrupt if a point requires clarification.
B) The interviewer should ensure that only the interviewer and the suspect are present for the interview.
C) The interviewer should be positioned between the suspect and the door to discourage the suspect from leaving during the interview.
Solutions:
Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: A |