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IIA Internal Audit Practitioner Sample Questions:
1. Which of the following best describes the difference between inherent risk and residual risk?
A) Inherent risk is the level of risk in the absence of any targeted actions or controls to alter its severity, residual risk is the risk remaining after implementing corrective actions.
B) Inherent risk is the level of risk before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.
C) Inherent risk is the level of risk the organization is willing to accept, residual risk is the level of risk deemed unacceptable by the organization.
2. Which of the following statements is appropriate to include in a high-quality internal audit engagement communication?
A) The internal audit team conducted an engagement under the assumption that significant control weaknesses were likely. The purpose of the review was to uncover those weaknesses.
B) The internal audit team conducted a review of the financial reporting process prior to year-end. The overall findings have been provided for management's consideration prior to the completion of the organization's annual external financial audit.
C) The internal audit team noted numerous weaknesses in the organization's internal controls over financial reporting. The team recommends that management determine the root cause of the weaknesses.
3. Which of the following best describes the purpose of a detailed engagement risk assessment?
A) To prioritize risks to the activity's objectives, according to the likelihood of occurrence.
B) 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.
C) To ensure that all risks identified during the engagement planning process are addressed during the audit.
4. 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 appetite.
B) Risk perception.
C) Risk capacity.
5. Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?
A) The CAE has direct access to records, personnel, and physical properties throughout the organization.
B) The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.
C) The CAE regularly attends and participates in critical executive management meetings for the organization.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: B |
By Noel
