Certified Internal Auditor Research & Evidence-Based Practice 4

Question 1

Which IIA document provides the authoritative definition of internal auditing and the core principles guiding the profession?

Accepted Answer

International Professional Practices Framework (IPPF)

Answer

The IPPF is the authoritative framework that includes the definition of internal auditing, Code of Ethics, Standards, and implementation guidance.

Question 2

An auditor wants to assess whether expense reimbursements follow a normal distribution. Which tool is MOST appropriate?

Accepted Answer

Histogram with normality test

Answer

A histogram visualizes the distribution shape, and paired with a statistical normality test (e.g., Shapiro-Wilk), it directly assesses whether data follows a normal distribution.

Question 3

When benchmarking audit findings against industry peers, the MOST significant limitation is:

Accepted Answer

Peer data may not be comparable due to differences in size, structure, or risk appetite

Answer

Differences in organizational size, business model, risk tolerance, and reporting practices can make peer benchmarks misleading if applied without careful contextualization.

Question 4

A 'gap analysis' in the context of internal audit research is used to:

Accepted Answer

Identify the difference between current practices and desired or required standards

Answer

Gap analysis compares the current state of controls or processes against a benchmark or standard to identify areas requiring improvement.

Question 5

Which of the following BEST illustrates the use of deductive reasoning in an audit?

Accepted Answer

Applying a known control standard to assess whether a specific control meets requirements

Answer

Deductive reasoning moves from a general principle (the standard) to a specific conclusion (whether this control meets it), which is a top-down logical process.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Research & Evidence-Based Practice 4