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Updated: Jul 07, 2026

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IIA Internal Audit Practitioner Sample Questions:

1. Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

A) An organization is subject to newly imposed industry health and safety regulations.
B) An organization must restate its financial statements due to an error in fixed asset valuation.
C) An organization is preparing to launch an enhanced service for its online customer information system.


2. During engagement planning, which of the following would provide an internal auditor with a sufficient understanding of the process being audited?

A) Management's opinion on the thoroughness of a previous internal audit of the same process.
B) The objectives and risk management of the process.
C) The mission, vision, and strategic objectives of the organization.


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


4. Information collected and documented in audit workpapers should be sufficient to:

A) Allow the work to be repeated and achieve the same results that logically lead to the same conclusion.
B) Confirm that management has effectively implemented recommended actions to resolve all identified control weaknesses.
C) Support engagement observations and be consistent with engagement objectives.


5. What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

A) To ensure that audit procedures are designed to address the risks relevant to the area being audited.
B) To ensure that the work performed by other internal or external assurance providers is considered during audit planning.
C) To ensure that all auditors have a common understanding of the area being audited.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: A

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