FREE Certified Internal Auditor MCQ Questions and Answers

Question 1

When an auditor suspects that an unnamed employee is submitting and approving bills for payment, which of the following processes would be most useful in supplying additional proof?

Accepted Answer

Use generalist audit software to find vendor bills containing post office box numbers or other strange details. Choose a representative sample of those invoices and link them to any supporting documentation, such as receiving reports

Answer

Choose a sample of the payments made throughout the year and examine each to see if it is acceptable

Answer

Select a sample of invoices paid during the past month and trace them to appropriate vendor

Answer

Trace a sample of receiving reports to the authorized payment for the period that is the subject of the investigation. Note any elements that weren't handled properly

Question 2

Which of the following should an internal auditor look out for during an audit of the award of a significant contract?

Accepted Answer

Material contract requirements are different on the actual contract than on the request for

Answer

A high percentage of employees are charged to indirect accounts

Answer

Subsequent change orders increase requirements for low-bid items

Answer

Losing bidders are not given feedback

Question 3

Which of the following categories of audit evidence best exemplifies the ability to establish a fact without relying on supporting assumptions?

Accepted Answer

Direct

Answer

Circumstantial

Answer

Conclusive

Answer

Corroborative

Question 4

A chief audit executive's main concern when reading a report written by an internal auditor who has a friend who works in the sector being audited would be to guarantee which of the following?

Accepted Answer

The report is fair, impartial, and unbiased

Answer

The report is simple to read and presents the findings logically

Answer

The report avoids superfluous detail, repetition, and wordiness and is written in clear sentences

Answer

The report is free from errors and misstatements

Question 5

Which of the following claims about work paper reviews is accurate?

Accepted Answer

Workpapers should be initialed and dated by the reviewer as evidence of supervisory review

Answer

After completion, the client should approve the engagement workpapers.

Answer

Work papers that pertain to legal issues should be reviewed to ensure that all audit opinions and details are recorded

Question 6

Which of the following is a benefit that computer-assisted audit techniques give to the audit process?

Accepted Answer

Ability of auditors to analyze large amounts of data

Answer

Ease of access to systems

Answer

Ease of training for auditors

Answer

Ability of auditors to deploy software solutions quickly

Question 7

Which of the following statements about individual versus collective decision-making is accurate?

Accepted Answer

Individual decision making is more conservative

Answer

More thorough information is evaluated during individual decision-making

Answer

Making decisions on one's own boosts the decision's perceived credibility

Answer

Individual decision making generates more alternatives