IIA IIA-IAP Practice Exams
Last updated on Apr 07,2025- Exam Code: IIA-IAP
- Exam Name: Internal Audit Practitioner
- Certification Provider: IIA
- Latest update: Apr 07,2025
According to The IIA’s Code of Ethics, which of the following best illustrates the principle of confidentiality?
- A . The auditor refused to use information learned during an audit to diversify his financial portfolio.
- B . The auditor declined to delegate critical audit lead responsibilities to a new auditor.
- C . The auditor declined to lead an audit of a department in which his nephew is the manager.
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.
Which sampling technique uses a nonrandom selection process that is expected to be representative of the population as a whole?
- A . Judgmental sampling.
- B . Haphazard sampling.
- C . Attribute sampling.
Management has decided that transactions less than $50 no longer require authorization.
Which of the following risk management strategies does this represent?
- A . Avoid.
- B . Accept.
- C . Reduce.
Which of the following creates an opportunity for an employee to commit fraud?
- A . Lack of adequate internal controls
- B . Unfair compensation practices
- C . The need for money to pay personal medical bills
Management requested that the chief audit executive (CAE) include an audit of the organization’s health and safety program in next year’s annual audit plan. However, the internal audit activity has no expertise in this area.
Which of the following would be the most appropriate actions for the CAE?
- A . Work with an internal subject matter expert to complete the audit.
- B . With management’s agreement, amend the audit scope so that specialized expertise is not needed.
- C . Accept the request, provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.
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
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.
Which of the following tools would assist with the coordination of efforts between the internal audit team and operational management?
- A . Automated workpapers.
- B . Continuous auditing.
- C . Control self-assessment.
Which of the following is considered an organization-level control, as opposed to process-level or transaction-level?
- A . Personnel policies requiring the employment of competent personnel, based on training and experience, to manage complex functions such as accounting and financial reporting.
- B . Supervision of finance employees, including day-to-day oversight and periodic performance evaluations.
- C . Segregated budgeting responsibilities of finance employees, including review and approval of financial reports.