Certified Internal Auditor (IIA) 5

Question 1

Computer-assisted audit techniques (CAATs) are PRIMARILY used to:

Accepted Answer

Test large volumes of data efficiently and identify anomalies

Answer

CAATs allow auditors to analyze entire populations of data, perform calculations, and detect exceptions that would be impractical to identify manually.

Question 2

Which of the following BEST characterizes the concept of 'organizational independence' for internal audit?

Accepted Answer

The internal audit activity is free from interference in determining its scope and reporting results

Answer

Organizational independence means internal audit can determine its own scope, perform work without interference, and communicate results without restriction.

Question 3

During a fraud investigation, the internal auditor's role is BEST described as:

Accepted Answer

Gathering and evaluating evidence to determine whether fraud occurred

Answer

Internal auditors gather and objectively evaluate evidence to determine whether fraud has occurred, then report findings to appropriate parties.

Question 4

An engagement work program should be prepared:

Accepted Answer

Before conducting fieldwork, based on preliminary survey results

Answer

The work program is developed prior to fieldwork to define the procedures, timing, and responsibilities needed to achieve engagement objectives.

Question 5

Which of the following is a characteristic of a well-written audit observation (finding)?

Accepted Answer

It contains criteria, condition, cause, and effect

Answer

A complete audit finding includes the criteria (what should be), condition (what is), cause (why it happened), and effect (the risk/impact).

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor (IIA) 5