Internal Auditor – Practice Exam

A. Address detected problems and restore the process or control environment

B. Replace risk assessment

C. Prevent all transactions from starting

D. Set the external audit fee

A. Ensure scope, cost, schedule, and risk changes are evaluated and authorized

B. Prevent any necessary change from ever occurring

C. Allow changes without recording them

D. Replace project monitoring

A. A method for calculating tax rates

B. A control to improve data accuracy, completeness, consistency, validity, and timeliness

C. A control that increases the amount of data regardless of quality

D. A process for issuing cheques

A. Deleting supplier records annually

B. Checks to understand the third party's background, integrity, capability, and relevant risks before or during a relationship

C. Paying every supplier in advance without review

D. Approving all vendors automatically

A. Assessing whether a control operated consistently as intended during the relevant period

B. Writing an audit charter

C. Reviewing only whether a written policy exists

D. Approving a supplier

A. The total number of audit findings

B. The complete set of items from which an audit sample may be selected

C. Only the items selected for testing

D. The list of audit staff

A. A list of all employees' personal assets

B. A structured list of auditable entities, processes, systems, and activities

C. A list of external auditors worldwide

D. A register of tax rates

A. Approving journal entries

B. Reviewing monthly financial ratios

C. Comparing budgets with actual results

D. Restricting entry to facilities or protected areas

A. An optional audit sample

B. A requirement arising from law, regulation, contract, policy, or other binding commitment

C. A forecasted sales target

D. A manager's informal preference in every case

A. A normal competitive tender

B. A routine purchase order approval

C. A properly documented price comparison

D. A buyer's personal interest could improperly influence supplier selection or contract decisions

A. Restoring data from a tested backup after data loss

B. Requiring dual approval before payment

C. Reviewing a monthly exception report

D. Checking employee identity at login

A. The standards, policies, laws, procedures, or expectations used to evaluate a condition

B. The final amount of the audit fee

C. A list of employee names

D. The auditor's personal preferences

A. A review of sales advertising

B. A review of payroll leave balances

C. A review of purchasing governance, competition, approvals, contracts, and payments

D. A review of customer credit notes only

A. Supplier details never affect payment risk

B. Unauthorized changes can redirect payments or create fictitious suppliers

C. Changes are always automatically valid

D. Master files contain no sensitive data

A. A rule requiring all records to be kept forever

B. A list of current assets

C. A method of calculating depreciation

D. Rules for how long records are kept and when they are securely disposed of

A. A channel for reporting suspected wrongdoing or misconduct

B. A method for preparing a cash budget

C. A system for issuing customer invoices

D. A procedure for calculating depreciation

A. A minimum employee age

B. A defined limit beyond which a result or transaction is flagged for review

C. The maximum number of audit staff

D. A fixed tax percentage

A. Examining plausible future situations and their potential effects on objectives

B. Preparing only historical financial statements

C. Reconciling only bank charges

D. Counting inventory without assumptions

A. 9

B. 20

C. 45

D. 1

A. Pressure or incentive, opportunity, and rationalization

B. Assets, liabilities, and equity

C. Planning, budgeting, and forecasting

D. Risk, control, and audit opinion