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IIA IAA-IAP Exam Syllabus Topics:

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 before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.
B) 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.
C) 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.

2. 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) Post-engagement survey of management of the audited area.
C) Approved engagement work program.

3. 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.

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

5. Which of the following is an advantage of communicating audit observations as they are identified?

A) The auditor may not need to communicate the final results of the audit to the board
B) The auditor may receive additional pertinent documentation or other relevant information
C) The auditor may be able to plan more efficiently next year's audit

Solutions: