Certified Internal Auditor Certified Internal Auditor 2

Question 1

Which of the following best describes the concept of 'reasonable assurance' in internal auditing?

Accepted Answer

A high level of confidence that objectives are being met, though not a guarantee

Answer

Reasonable assurance is a high but not absolute level of confidence that controls are functioning and objectives are being achieved.

Question 2

An internal audit activity uses a risk-based audit plan. Which element is MOST critical when determining the audit universe?

Accepted Answer

The organization's risk appetite and strategic objectives

Answer

A risk-based audit plan aligns the audit universe with the organization's risk appetite and strategic objectives to prioritize high-risk areas.

Question 3

When an internal auditor identifies a control deficiency that management chooses to accept rather than remediate, the auditor should:

Accepted Answer

Document management's risk acceptance decision in the audit report

Answer

When management accepts risk without remediation, the auditor must document this decision in the final audit communication.

Question 4

The IIA's International Professional Practices Framework (IPPF) is BEST described as:

Accepted Answer

A conceptual framework including mandatory guidance and recommended guidance

Answer

The IPPF consists of mandatory guidance (Core Principles, Standards, Code of Ethics) and recommended guidance (Implementation Guidance, Supplemental Guidance).

Question 5

An auditor is reviewing a company's segregation of duties in accounts payable. Which finding represents the GREATEST control risk?

Accepted Answer

One person approves vendor invoices and reconciles the accounts payable ledger

Answer

Combining invoice approval and ledger reconciliation in one person eliminates a key detective control and creates significant fraud risk.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Certified Internal Auditor 2