Certified Internal Auditor Certified Internal Auditor 5

Question 1

Which analytical procedure involves comparing current-period financial data with prior-period data to identify unusual fluctuations?

Accepted Answer

Trend analysis

Answer

Trend analysis compares data across multiple periods to identify patterns or unusual changes that may indicate risk or error.

Question 2

An internal auditor is reviewing a third-party vendor contract. Which risk is MOST unique to outsourced activities compared to in-house operations?

Accepted Answer

Lack of direct control over the vendor's internal controls and activities

Answer

Outsourcing creates unique risk because the organization cannot directly oversee or enforce controls over the third party's processes.

Question 3

The IIA Code of Ethics requires internal auditors to respect the value and ownership of information they receive. This obligation BEST reflects which principle?

Accepted Answer

Confidentiality

Answer

Confidentiality requires auditors to respect and protect information acquired during the course of their work.

Question 4

During follow-up on a prior audit, management reports that a recommended control has been implemented. The auditor should:

Accepted Answer

Verify implementation through independent testing or observation

Answer

Auditors should independently verify that corrective actions have been effectively implemented, not simply rely on management's assertion.

Question 5

An internal auditor notices that a newly implemented ERP system is processing duplicate vendor payments. This finding most likely indicates a weakness in:

Accepted Answer

Application-level preventive controls in the ERP system

Answer

Duplicate payments processed by the ERP indicate a failure in application-level preventive controls designed to detect and block duplicates before processing.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Certified Internal Auditor 5