Certified Internal Auditor (IIA) 3

Question 1

Under the IIA Standards, a quality assurance and improvement program (QAIP) must include:

Accepted Answer

Both internal and external assessments

Answer

A QAIP must include both ongoing internal assessments and periodic external assessments to evaluate the effectiveness of the internal audit activity.

Question 2

Which of the following BEST describes 'inherent risk' in the context of internal auditing?

Accepted Answer

Risk existing before management takes action to reduce it

Answer

Inherent risk is the level of risk present in an activity or process before considering the effect of controls or other mitigating factors.

Question 3

An internal auditor who previously worked as the controller of an audited department should:

Accepted Answer

Disclose the prior role and assess whether objectivity is impaired

Answer

The auditor must disclose the former position and the CAE should evaluate whether objectivity is impaired before assigning the auditor to that engagement.

Question 4

Which audit sampling method gives each item in the population an equal chance of selection?

Accepted Answer

Random sampling

Answer

Random sampling ensures every item in the population has an equal and known probability of being selected, reducing selection bias.

Question 5

The THREE lines of defense model assigns which role to internal audit?

Accepted Answer

Third line — independent assurance

Answer

Internal audit serves as the third line of defense by providing independent assurance on the effectiveness of governance, risk management, and controls.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor (IIA) 3